EU 2 year guarantee. Sale of Goods Act gives us 6 years to claim for faulty appliances
There’s been a lot of talk about a new EU directive proposing to give everyone a 2 year guarantee on all products. Many articles are even saying this new right is being suppressed in the UK and consumers are being deceived by retailers. The truth is that it is not the extension to the manufacturer’s 12 month parts and labour guarantee that some seem to believe it is. It isn’t a new law giving us 2 year guarantees instead of 1 year.
This ruling says that consumers have a right to claim against a retailer regarding faulty goods for a period of 2 years. However, in the UK we not only already have this right but we have it for a much longer period of 6 years, with 5 years in Scotland.
This can be confirmed by the reaction of the Citizens Advice Bureau -
“The limitation on legally required provision of redress to a two year period is an important reduction in protection (my emphasis) for UK consumers..”.
Source: Eu proposals for a Consumer Rights Directive (Pdf)
The UK Sale of Goods Act already offers us protection against faulty goods even when the manufacturer’s guarantee has run out and says that goods must last a “reasonable time” – which can be claimed anything up to 6 years from the date of purchase.
The problem is that what is a reasonable time is subject to much interpretation and is also affected by how much a product cost, and how it has been used. Retailers and manufacturers have always stubbornly refused to entertain most claims for free repairs or compensation after the 12 month period and most consumers have historically accepted this even if begrudgingly at times.
The government’s guidelines say:
“Goods are of satisfactory quality if they reach the standard that a reasonable person would regard as satisfactory, taking into account the price and any description.”
There is no 6 year guarantee
I don’t believe that as consumers we have the right to free repairs up to the 5 or 6 years in the sense that any faults up to 6 years should be repaired free of charge but I do think any fault that renders an appliance uneconomical to repair within the 6 years should be covered. I also don’t think it is necessarily unreasonable if a minor fault develops on a washing machine or other white good within the first 5 or 6 years. Appliances can and do break down and this is accepted in the Sales of Goods Act. However, whilst it might be considered reasonable for a minor fault to develop on a £200 washing machine washing for a family of 4 every day after 2 years it might not be considered reasonable for a washing machine costing £800 to suffer the same.
Major faults occurring within the first 5 or 6 years, which these days commonly render an appliance beyond reasonable repair are a different matter and I believe are covered. If an appliance breaks down and is unrepairable because of the huge cost quoted to repair it within the 5 or 6 years I believe there is a strong case that the product has definitely not lasted a reasonable time. You have to take into account how much it cost though and how much use it’s had.
A can of worms is waiting to be opened
Until enough people start to fight for these rights and retailers and manufacturers are forced to comply most consumers may have to resort to taking a seller to the small claims court to get a decision on the true extent of their rights ( Small claims court advice ). If this ever occurs on a large scale it will cause serious ripples because the status quo affords a lot of extra profit to retailers and manufacturers and effectively encourages them to continue to produce or sell poor quality rubbish. They financially benefit from doing so through extra sales when they don’t last, extra repair business, extra sales of spare parts and sales of extended warranties, which mostly cover repairs within the period that consumer legislation says a product shouldn’t be seriously breaking down within anyway – and so shouldn’t be necessary. I’m sure many people take out an extended warranty to protect them from the fear of a major fault developing within the first 5 years, which should be covered under the Sales of Goods Act.
What would happen if consumers actually received their statutory rights?
I suspect retailers were made responsible for all problems with the products they sell – even when it’s clearly not their fault – for two reasons. Firstly because the customer only has a contract with the people they bought from – and not the people who made it. They shouldn’t have to negotiate with faceless third parties. Secondly, and I’d like to think this was intended though it’s only speculation on my part, if retailers sell rubbish they (in theory) should suffer financial and time consuming consequences and would either stop selling the rubbish or put pressure on manufacturers to improve quality.
Unfortunately retailers do sell a lot of poor quality products that don’t last anywhere near as long as they should, and of course manufacturers continue to make them. Because most consumers don’t enforce their consumer rights both manufacturers and retailers generally profit nicely from sub standard quality and have little incentive to produce or sell better quality products. Consumers take most of the impact of poor quality goods themselves by paying out extra for extended warranties or by replacing products far too often, or by paying out to repair products within the first 6 years when the retailer may well be liable. Most manufacturers (of appliances at least) own so many brands they don’t even fear people being so dissatisfied with a brand that they don’t buy it again because they own many of the “alternative” brands their chosen (price-bracket) customers will turn to. ( Who owns who? Who really makes your appliance? )
If consumers en mass started to reject the status quo it would put the cat amongst the pigeons and cause a lot of trouble for retailers and manufacturers. Retailers in particular wouldn’t know what had hit them. In the end they’d have to stop selling rubbish because they could no longer profit from doing so. They would only be able to survive selling products that were good enough to last the “reasonable time” expected.
I wouldn’t try to say that most appliances are so rubbish that the majority of them don’t last (although some might), but there’s little doubt that an unacceptable percentage of white goods appliances do suffer expensive breakdowns well within the first 5 or 6 years and this current situation, which is bad for the environment as well as consumers, is only viable because it’s the consumer that bears most of the financial costs. If the consumer refused to accept this burden it would pass back to the retailer as the Sales of Goods Act intended and guess what – the retailers would ensure products they sold were more reliable.
Would we be better off?
This paragraph is a little tongue in cheek but believe it or not I would worry about how all this could impact the economy especially in these very tough times for retailers. If there’s one thing I’ve learnt from the “credit crunch” it’s that our economy seems to be based almost entirely on everyone buying lots of products they do not need, and replacing them way too regularly. As soon as we enter a time when people stop buying things they don’t really need we have mass unemployment and business’s struggle. So if all products were much more reliable it could have a big impact on sales and jobs. It would however be better environmentally and that’s pretty important at the moment.
The cost of products would have to go up because you can’t have very cheap and very reliable. It’s ironic that in a way, all these shoddy goods help keep our economy going. However, the same could be said for crime and vandalism, think how many jobs would be lost if there was no crime – seriously it would be millions. There’s no need for every product to be high quality and there’s plenty of room for a healthy variance in quality but products should still last a “reasonable” time and most people would think a white goods appliance lasting less than 5 or 6 years before a major fault renders it not worth repairing is not reasonable in most circumstances.
Fair Wear and Tear clause
A vital point to realise is that the Sales of Goods act in the UK giving rights to compensation for between 5 and 6 years is not a guarantee or warranty. There has always been a fair wear and tear clause and it has always said that it does not mean that no breakdowns at all should occur within this period -
“Goods cannot always be expected to work fault-free. They can break down through normal use. Buyers cannot, therefore, expect to hold the seller responsible for fair wear and tear. There needs to be a fault that was present on the day of sale even though it only became apparent later on, or a mis-description of the goods, or a lack of durability that suggests the goods were not of satisfactory quality to start with”.
Research further
Last year I spent a few weeks researching consumer rights and wrote an entire section focussing on consumer rights for washing machine owners though most of the advice should be equally relevant for most appliances and even other products.
John Lewis give a minimum 2 year guarantee on all washing machines, 3 year guarantee on all John Lewis own brand appliances and 5 year warranties on all TVs although they take the form of “free” extended warranties run by an extended warranty company after the first year.
Many manufacturers give 2 year guarantees (such as Bosch) and even 5 year parts and labour guarantees such as Miele or 10 year guarantees (ISE10 and occasionally Miele). The longer the guarantee period However, any guarantee given by a retailer or a manufacturer are, as the famous phrase says, “in addition to your statutory rights”. The Sales of goods Act is a separate right which often needs fighting for and is shrouded in mystery, confusion and denial as well as (to be fair) often over inflated expectations from consumers.
Here’s what the government advises retailers regarding their obligations
I’ve highlighted some phrases in bold.
“If a customer rejects faulty goods within this ‘reasonable’ period, they’re entitled to ask for their money back. All customers can claim compensation at any time if they choose. If you sell to consumers they can ask for a repair or a replacement immediately (instead of asking for a refund) at any time until six years after purchase.
If you’re dealing with a consumer, any repair or replacement you arrange must not cause them too much inconvenience. You may have to pay for other costs such as transportation. However, if a replacement is impossible and the goods cannot be repaired economically, or vice versa, then you can offer a full or partial refund.
In law you have a responsibility to your customer for up to six years from the date of purchase (in Scotland, five years from discovery of the problem). During this period, you are legally obliged to deal with any claim of breach of contract.”
Source The Sale of Goods Act: The rights of customers: goods
“If faulty goods are involved and the purchase was made a reasonably short time ago, you should offer a refund. Although they won’t usually do so, the customer may claim compensation from you – either immediately following the sale or up to six years afterwards. If they do so and it’s a reasonable claim, you can either offer to repair or replace the goods, or to provide an appropriate sum in redress”
Source The Sale of Goods Act:What do I have to do if a customer complains?
Related Links -
I’ve read all the consumer advice about washing machines, I’m thinking of taking them to court (This page contains a link which allows you to pursue a small claim online, without even having to leave home. The article is about washing machines but the link can be used to pursue any small claims court action)
My Consumer advice section Research consumer issues on Washerhelp.
The above link includes many links to consumer booklets and guides as well as looking at many related FAQs regarding white goods and repairs. One of the most useful guides available is written for retailers. This is a valuable guide for retailers, but as consumers it is very useful to see what retailers are being told are their responsibilities by the Department of Trade & Industry.
The Law Relating to the Supply of Goods and Services – A TRADER’S GUIDE (pdf file)
Consumer Rights Myths (Article written by K. Watts of UK Whitegoods)
UPDATE: 16/10/2009
I’ve just found a useful BBC news page Five consumer laws you really ought to know. There are several references to washing machines and white goods in the article and the comments below it.
Written By - Washerhelp on August 17th, 2009 with
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nick
Lilly
Paula
Ken Gorman
Joe Haugh
linda
Lilly
#1. August 25th, 2009, at 1:35 PM.
As a retailer I feel very frustrated by the mixed messages we seem to be getting on the above issue.
Only last week I read a leading trade paper that stated that retailers were not bound by a 6 year warranty period set down in European legislation.
Like us, most retailers want to keep exsisting customers and would not begrudge going the extra mile to keep our customers happy. What would help on this issue would be a definate piece of Uk legislation on the matter to clear up once and for all the mixed messages that retailers seem to be getting.