Consumer Goods Act - customer demanding a refund
Hi,
Looking for some assistance please. We sold a PS4 console to a customer in December 2019. Customer contacted us in October 2020 to say it was faulty - on three separate occasions we advised the customer they could return the console for a full refund or replacement and also that it was covered by manufacturers warranty if they wanted to get it repaired.
We heard nothing at all until last week. The customer is stating they want a refund under SOGA/Consumer Rights Act. We have rejected this as the fault was not reported until after 6 months had elapsed (under Consumer Rights Act the onus is on the customer to prove there was a fault at the time of delivered) and mainly because on three separate occasions we offered to remedy it, but the customer ignored this and did not return the item and has then waited a further three and a half years to request a refund.
We believe we are covered as we have acted in good faith and the customer ignored our attempts to remedy the issue. The customer is quoting Sales of Goods Act and saying the item was not fit for purpose and is threatening to use the small claims court.
Any advice would be much appreciated
16 replies
Seller_ZJhFeE3tNKzfh
while i don’t have any personal experience I’d agree with your assumption.
After 6 months it would be on the customer to prove the fault was there at purchase, which would be difficult anyway, but the fact you had evidence you tried to resolve within a year but the customer failed to take you up on the offer, I would imagine you’d win if it went to court.
Seller_W9yo5Cx6uU7iL
Hi. The warranty was out of date in December 2020. Not an issue for you now. Sony also won't touch it. After 4.5 years ware and tear, lot's of "things" break. Andrew
Seller_W0UadCH7lVBVG
You are correct, you can do no more, you've followed the law. Customer had the opportunity in 2020 to pursue but didn't, and more than a reasonable amount of time has now passed. Customer is still able to make a claim, (at a cost to them) but it will be down to them to prove the fault. Don't lose any sleep over it, honestly, let them pay the £40 (or how ever much it is these days) for the claim form. Even if it did go to court, I can't see any judge siding with the customer, they had the opportunity at the time and chose to delay it. I wouldn't even reply to them anymore, put it back on them to pursue it...if they can now be bothered
Seller_tRuvBEHDedp4q
Yep I agree with everything above.
This is not a warranty issue - You as retailer are responsible for the goods lasting a 'reasonable time' - but you did try to resolve back in 2020. For them to wait a further 3.5 years puts the goods outside of lasting a 'reasonable time' in my opinion. You cannot be certain that there was anything wrong at time of original complaint back in 2020 as you were not able to inspect the goods.
But check any business insurance you have. Often it has a free legal helpline you may have access to for additional professional advice.
Seller_IQo80d99W2DzP
I would highly suggest to read up on 'The Consumer Rights Act 2015' .
That law states the Buyer has 6 years from the date of purchase to make a claim. They can only claim for a repair (they may have to pay towards that cost), not a refund.
This is the law, and the Seller is the one they claim from. This has nothing to do with a Manufacturers Warranty, which usually they do not have to offer legally, but most claim from that when offered, as no cost to a Seller.
As over 6 months old, you need to ask the Buyer to provide an Expert Report. You both need to agree on the Expert, and that is at the Buyers cost, even if they win. That would be an engineer that specialises in this type of equipment, and cannot be yourself.
Explain to the Buyer, that a partial repair cost is only covered if the report says that the item had a manufacturing defect and what that defect was, so the cause of the issue. It cannot be just general use wear and tear, a faulty item after some use, a cheap quality item, etc.
If not a manufacturing defect, explain that they are not covered, and a repair would be chargeable in full. (which you can offer to repair, with a cost, or just say they can find their own repairer).
If a manufacturing defect, then the Seller has to initiate a repair, or offer to pay towards a repair, and advance agree a cost. As over 6 months old, then the Buyer and Seller pay towards that repair. It depends on what the Expert also considers the life of the item, how much the Buyer pays towards that repair.
For example: Item costs £300, the Expert cost could be £100 (non-reclaimable, so warn the Buyer a major risk to them, and is that worth it, as often with older items is not the case, unless expensive products, like a car).
If the Expert says a manufacturing defect, the Seller MUST by law accept that. The repair cost is £100 and the average life of the item is 4 years, but 3 and a half years have passed. So, the Buyer pays £87.50 towards the repair and the Seller pays just £12.50 towards it. The Buyer could have just paid for the repair, which would have been cheaper overall, but it also cost them £100 for the Expert Report, so really the Buyer paid out £187.50 - it would have been cheaper if they just paid the £100 for the repair.
If the Expert says it was a manufacturing defect, but the average life of say a controller is 3 years, and it is now after 3 years, then none of the repair cost is payable by the Seller.
A judge will likely make you pay out and you will lose unless you offer the above. Most Buyers will not pay for an Expert Report, you do not have to cover any of the costs, explain the risks, most Buyers then go away and pay for a repair.
We often offer a Buyer a reduced price, or even at cost repair as cheaper than anything, and you are not losing out, just uses some time. Shows goodwill, if it goes to court.
If you offer the above and no Expert report etc, the judge should throw out the case. You can point out you offered everything to the Buyer in 2019, but as still under 6 years, you still need to accept the law and offer as above.
I would not just ignore it, as a judge would have no choice other than to say you refused to accept the law and you may refund everything and pay court costs.
To note: I was most happy to go to court, with a Buyer of ours, as I'd offered the above. I won, as the judge accepted we would have accepted an Expert Report and explained that to the Buyer, etc.
Seller_job9RwaFcr0lx
Let them take you to court, I doubt they will, and as you offered to accept the return on 3 occasions 3 years ago I doubt any judge will award in their favour. Just make sure you have the proof that you offered the return/refund.
Seller_2BSBgE3FJzlK4
tell them you are happy to go to small claims court. hire a solicitor and claim all the legal costs back off them. that will teach them a lesson.
