TRW & Co · Competition and consumer law
Consumer Rights Act 2015: What It Requires of Business
The Consumer Rights Act 2015 sets minimum standards for goods, digital content and services sold to UK consumers, fixes a tiered set of remedies and makes unfair or opaque terms unenforceable. Since April 2025 the CMA can fine breaches of consumer law directly, so returns policies and standard terms now carry real regulatory risk.
Key pointThe six-month rule shifts the burden of proof rather than ending liability, and the price exemption from fairness review applies only to transparent and prominent terms: two points that many standard returns policies and subscription terms still get wrong.
At a glance
In force since 2015
The Act came into force on 1 October 2015 and governs trader-to-consumer contracts for goods, digital content and services across the UK.
30-day right to reject
Consumers can reject non-conforming goods for a full refund within 30 days of ownership, delivery and any installation, with shorter periods for perishables.
Six-month presumption
Faults appearing within six months of delivery are presumed present at delivery for repair, replacement, price reduction and final rejection claims.
Unfair terms not binding
Part 2 makes unfair terms and notices unenforceable against consumers and requires written terms to be transparent; core terms escape review only if prominent.
CMA can fine directly
Since 6 April 2025 the CMA can decide consumer law breaches itself and impose penalties of up to 10% of worldwide turnover.
Swipe or scroll →
The short answer: what the Consumer Rights Act 2015 requires of business
The Consumer Rights Act 2015 is the main UK statute governing contracts between traders and consumers. It sets minimum standards for goods, digital content and services, gives consumers a tiered set of remedies when those standards are not met, and requires consumer contract terms and notices to be fair and transparent. Traders cannot contract out of the core rights.
The Act came into force on 1 October 2015 and applies across the UK, with some procedural differences in Scotland. It sits alongside the Consumer Contracts Regulations 2013 (pre-contract information and cancellation rights for distance and off-premises sales) and, since 2025, the consumer enforcement regime in the Digital Markets, Competition and Consumers Act 2024 (DMCC Act).
That last point is why the Consumer Rights Act 2015 matters more in 2026 than it did a few years ago. The Competition and Markets Authority (CMA) can now decide for itself whether consumer law has been breached and impose fines of up to 10% of worldwide turnover, without first going to court.
The legal framework: how the Act is structured
The Consumer Rights Act 2015 is divided into three Parts. Part 1 deals with consumer contracts for goods (Chapter 2), digital content (Chapter 3) and services (Chapter 4). Part 2 deals with unfair terms. Part 3 covers enforcement and miscellaneous matters, including investigatory powers and private actions in competition law.
The Act applies only where a "trader" contracts with a "consumer": an individual acting wholly or mainly outside their trade, business, craft or profession. Business-to-business contracts are governed instead by the Sale of Goods Act 1979, the Supply of Goods and Services Act 1982 and the Unfair Contract Terms Act 1977.
Related rules include the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, which give a cancellation right for most online and off-premises sales, and the unfair commercial practices provisions now in Part 4 of the DMCC Act. Our guide to DMCC Act consumer enforcement explains the new penalty regime.
Goods: statutory rights and the tiered remedies
Every contract to supply goods to a consumer is treated as including terms that the goods are of satisfactory quality (section 9), fit for any particular purpose the consumer made known (section 10) and as described (section 11). Pre-contract information the trader gives can also become a binding term (section 12). Installation by the trader forms part of conformity (section 15).
If goods do not conform, the remedies follow a deliberate order.
- Short-term right to reject. The consumer can reject non-conforming goods for a full refund within 30 days of ownership passing, delivery and any required installation (section 22). Perishable goods have a shorter period.
- Repair or replacement. Alternatively, or once the 30 days have passed, the consumer can require repair or replacement, which must be carried out within a reasonable time, without significant inconvenience and at the trader's cost (section 23).
- Price reduction or final right to reject. If one repair or one replacement fails, or repair and replacement are impossible or not done properly, the consumer can claim a price reduction or reject the goods (section 24).
- Refund mechanics. Refunds must be made without undue delay and in any event within 14 days of the trader agreeing the consumer is entitled to one, using the original means of payment unless agreed otherwise (section 20).
- Deduction for use. On a final rejection, the trader generally cannot deduct for use in the first six months, except for motor vehicles (section 24(10)).
The six-month reversal of the burden of proof
For repair, replacement, price reduction and final rejection, a fault that appears within six months of delivery is presumed to have been present at delivery, unless the trader proves otherwise or the presumption is incompatible with the nature of the goods (section 19(14) and (15)). After six months, the consumer must show the fault was there from the start. Retailers that train staff to treat the six-month point as a cut-off for all claims are misreading the Consumer Rights Act 2015: it shifts the burden of proof, it does not end liability.
Digital content and services
Digital content
Chapter 3 extends equivalent quality, fitness and description standards to digital content such as apps, software, games and streamed media (sections 34 to 36). It applies where digital content is paid for, or supplied free with paid goods, services or other digital content. Remedies are repair or replacement (section 43) and price reduction (section 44); there is no general right to reject, reflecting that digital content cannot be "returned". Where digital content damages a device or other digital content because the trader failed to use reasonable care and skill, the consumer can require repair or compensation (section 46).
Services
Services must be performed with reasonable care and skill (section 49). Information the trader gives about itself or the service can become binding (section 50), and where price or time is not agreed, the consumer pays a reasonable price and the service must be performed within a reasonable time (sections 51 and 52). The remedies are repeat performance (section 55) and, if that is impossible or not done within a reasonable time, a price reduction that can extend to a full refund (section 56).
| Contract type | Core statutory standards | Primary remedies | Secondary remedies |
|---|---|---|---|
| Goods | Satisfactory quality, fitness for purpose, as described, match sample or model | Short-term right to reject (30 days); repair or replacement | Price reduction or final right to reject |
| Digital content | Satisfactory quality, fitness for purpose, as described | Repair or replacement | Price reduction; compensation for damage to device |
| Services | Reasonable care and skill; binding information; reasonable price and time | Repeat performance | Price reduction (up to the full price) |
The statutory remedies are not exclusive. Consumers can also claim damages or seek specific performance under general contract law, though they cannot recover twice for the same loss.
Unfair terms and transparency under Part 2
Part 2 of the Consumer Rights Act 2015 provides that an unfair term in a consumer contract, or an unfair consumer notice, is not binding on the consumer (section 62). A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations to the detriment of the consumer. Schedule 2 contains an indicative "grey list" of terms that may be unfair, such as terms allowing the trader to vary the price or the service unilaterally, or imposing disproportionate charges on a consumer who cancels.
Two further rules matter in practice. First, the main subject matter and the price are exempt from the fairness assessment only if the term is both transparent and prominent: in plain and intelligible language, legible, and brought to the attention of an average consumer (section 64). Second, a trader must ensure every written term is transparent (section 68), and where a term could have different meanings, the meaning most favourable to the consumer prevails (section 69).
A trader cannot exclude or restrict liability for death or personal injury caused by negligence (section 65). Terms that would exclude the statutory rights for goods, digital content or services are not binding (sections 31, 47 and 57). In 2026 the CMA published updated guidance on unfair contract terms, with fresh examples on cancellation, subscriptions, refunds and ancillary charges.
Courts must consider fairness of their own motion (section 71), and the CMA can now fine directly. A clause that a consumer never challenges is still a liability. Review standard terms with an eye to the grey list, and treat transparency as a design question: key terms should appear where consumers will actually see them, not only in a linked document.
Enforcement in 2026: the CMA's direct powers
Before April 2025, the CMA and Trading Standards largely enforced consumer law through the courts. Since 6 April 2025, the DMCC Act has allowed the CMA to investigate and decide for itself that a trader has infringed specified consumer law, to require it to stop, to order redress, and to impose fines of up to 10% of global turnover. The CMA has made clear that unfair contract terms fall within its enforcement focus.
Trading Standards and other regulators still enforce through the courts, and individual consumers can bring claims in the county court, often in the small claims track. The Act's remedies also feed into ombudsman schemes and chargeback claims. For many businesses, the commercial risk is cumulative: a defective returns policy can generate individual claims, platform complaints, regulatory scrutiny and reputational damage at the same time.
Parallel DMCC Act rules on subscription contracts, fake reviews and drip pricing also bear on the same customer journeys; see our guides to subscription contracts rules and fake reviews and drip pricing.
An illustrative scenario
The following scenario is illustrative only and does not describe any real client or matter.
An online retailer sells home appliances to UK consumers. Its terms say that faulty items may be returned only within 14 days, that refunds are issued as store credit, and that the retailer "may repair or replace at its discretion". A customer reports a fault four months after delivery.
Under the Consumer Rights Act 2015, the customer is outside the 30-day short-term right to reject, but can require repair or replacement. Because the fault appeared within six months, it is presumed to have existed at delivery. The 14-day returns limit and the store-credit term are likely unenforceable as attempts to restrict statutory rights, and the refund should go back to the original payment method if a refund becomes due. If the single repair fails, the customer can reject the appliance for a refund with no deduction for use.
The retailer's exposure is not limited to this customer. The same terms, applied across thousands of transactions, are precisely the kind of practice the CMA can now investigate directly. A short, plainly worded returns policy that tracks the statutory remedies would remove most of the risk.
Risks and common mistakes
Confusing the 14-day cancellation right with the 30-day right to reject
The Consumer Contracts Regulations 2013 give consumers a right to cancel most distance and off-premises contracts, usually within 14 days, whether or not anything is wrong. The 30-day short-term right to reject under the Consumer Rights Act 2015 applies only to goods that do not conform to the contract. Returns policies that merge the two, or that apply the shorter cancellation period to faulty goods, misstate consumers' rights and can amount to a misleading practice.
Relying on "no refunds" or "store credit only" wording
Terms that exclude or restrict the statutory remedies are not binding on the consumer. A blanket "no refunds on sale items" notice, or insisting on store credit for faulty goods, does not displace the statutory rights. Worse, presenting such terms as if they were binding can mislead consumers about their rights, which engages the unfair commercial practices rules now enforced directly by the CMA.
Hiding price and core terms in long documents
The exemption for price and main subject matter applies only to terms that are transparent and prominent. Auto-renewal fees, minimum terms and ancillary charges buried in long terms and conditions may therefore be assessed for fairness, and may fail. Present key commercial terms at the point of purchase, in plain language, and keep a record of how they were displayed at each stage of the customer journey.
Assuming B2B terms work for consumers
Limitation of liability and exclusion clauses that are reasonable between businesses can be unfair or simply void in a consumer contract. Businesses that sell to both should use separate terms, or at least a clearly separated consumer section. Our guide to business terms and conditions explains how to structure both.
The cross-border angle
Overseas traders selling into the UK cannot avoid the Act by choosing a foreign governing law. Section 32 preserves the goods rights where the contract has a close connection with the UK, and section 74 does the same for the unfair terms regime. Exporters from Bangladesh, the Gulf or Asia that sell direct to UK consumers online should therefore build UK-compliant consumer terms, returns processes and complaint handling into their UK proposition from the outset.
For UK businesses selling into the EU, the position is different again: EU consumer law applies to EU consumers, and the rules are similar but not identical. Groups operating in both markets typically maintain jurisdiction-specific terms rather than a single global set.
What to do next: a compliance checklist
- Map each product line as goods, digital content, services or a mix, and confirm the statutory standards that apply.
- Align returns, refunds and warranty policies with the tiered remedies, including the 30-day and six-month rules.
- Separate the 14-day cancellation right from fault-based remedies in all customer-facing materials.
- Audit standard terms against Schedule 2 and the CMA's updated unfair terms guidance.
- Check that price, renewal and cancellation terms are transparent and prominent at the point of sale.
- Train customer service teams and keep complaint data, as it is often the first evidence a regulator requests.
- Assess DMCC Act exposure across subscriptions, reviews and pricing.
Our consumer protection solicitors review terms, customer journeys and complaint handling, working with our commercial contracts team and our advertising and marketing team. To discuss your consumer terms or a regulatory enquiry, please contact our London office.
Frequently asked questions
01Who does the Consumer Rights Act 2015 apply to?
It applies to contracts between a trader and a consumer. A consumer is an individual acting wholly or mainly outside their trade, business, craft or profession; a trader is a person acting for business purposes, including through an agent. Business-to-business contracts fall outside the Act and are governed mainly by the Sale of Goods Act 1979, the Supply of Goods and Services Act 1982 and the Unfair Contract Terms Act 1977. The Act applies across the UK, although some procedural details differ in Scotland.
02How long does a consumer have to return faulty goods?
For a full refund under the short-term right to reject, the consumer generally has 30 days from when ownership has passed, the goods have been delivered and any installation has been completed. After that, the consumer can still require a repair or replacement, and if one repair or replacement fails, can claim a price reduction or reject the goods. The general limitation period for contract claims in England and Wales is six years, so liability for faulty goods can last well beyond any manufacturer's warranty.
03What is the six-month rule under the Consumer Rights Act 2015?
If goods turn out to be faulty within six months of delivery, the law presumes the fault was present at delivery, so the trader must prove otherwise if it wants to resist a repair, replacement, price reduction or final rejection claim. After six months the burden passes to the consumer. Separately, a trader generally cannot make a deduction for use when a consumer exercises the final right to reject within six months, except in the case of motor vehicles.
04Can a business refuse a refund and offer store credit instead?
Not where the consumer is entitled to a refund under the Act. Refunds for faulty goods must be made using the same means of payment the consumer used, unless the consumer expressly agrees otherwise, and without undue delay and within 14 days of the trader agreeing that a refund is due. A business can offer store credit as a goodwill gesture for change-of-mind returns, where there is no legal right to a refund, but it cannot substitute credit for statutory remedies.
05What makes a contract term unfair under the Act?
A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations to the detriment of the consumer. The court considers the nature of the subject matter, all the circumstances at the time the term was agreed and the other terms of the contract. Schedule 2 lists examples that may be unfair. Terms setting the price or main subject matter are exempt only if they are transparent and prominent.
06What can the CMA do if a business breaches consumer law?
Since 6 April 2025, the CMA can investigate suspected breaches of specified consumer law and decide for itself whether an infringement has occurred, without needing a court order. It can direct the business to stop the conduct, require redress or other enhanced consumer measures, accept undertakings and impose fines of up to 10% of the business's worldwide turnover. Separate penalties apply for failing to comply with information notices. Trading Standards continue to enforce through the courts.
Sources and official materials
- Consumer Rights Act 2015 — Full text of the Act, including Parts 1 and 2
- Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 — Pre-contract information and cancellation rights
- Digital Markets, Competition and Consumers Act 2024 — CMA direct consumer enforcement and unfair practices
- CMA guidance on unfair contract terms — How the CMA assesses fairness and transparency
- Consumer protection rights (GOV.UK) — Plain-English summary of consumer rights
- Competition and Markets Authority — Consumer enforcement cases and guidance
General information only, current as at 21 October 2026. It is not legal advice and does not create a solicitor–client relationship. It reflects the law of England and Wales unless stated otherwise; Scotland and Northern Ireland have separate legal systems, and the law changes frequently. Check current official sources and take advice on the facts of your matter.