Keep up with savvy shoppers

Inevitably, those businesses that understand their customers will survive and flourish.

Nowadays, the high street is in our homes. A decade ago, phrases such as ‘online shopping’ or ‘digital services’ were alien to shoppers, who were far more predictable in their retail habits and less aware of consumer rights.

Today’s shoppers are far more knowledgeable. Buyers have wrestled control from sellers and the days of caveat emptor or ‘let the buyer beware’ are receding fast. The flood of online information and the reputational weaponry of social media give the consumer power.

American writer Daniel Pink says about 21st-century sales techniques that “the high road – honesty, directness and transparency – has become the better more pragmatic, long-term route”. They say that if
all else fails, try the truth,
with going straight proving
a successful strategy for the oft-maligned “sleazy” sales profession, he says.

The customer’s confidence
to challenge sellers has also increased. TV shows such as Watchdog and websites such as moneysavingexpert.com are educating and empowering us.

However, until now, the UK’s complex consumer laws, rooted in the 1970s and 1980s, have stood defiant against the fast-changing retail landscape. That is about to change.

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 came into force on 13 June 2014, affecting all UK businesses that deal with consumers by phone, online or in person. The European Union was the driving force for this legal reform.

Meanwhile, the proposed Consumer Rights Bill continues its passage through the UK parliament. It will streamline current laws and bring clarity
for businesses and consumers, covering digital possessions
such as e-books, audio and video downloads, and apps.

In theory, everyone is a winner. The consumer will have a clearer understanding of their rights while businesses will have a clearer understanding of their obligations, which should lead
to a more open relationship.

Consumers will switch on to their new rights quickly, and those slow-to-act businesses in breach of the new laws will face possible prosecution and, perhaps more damagingly, criticism on social media sites.

If the legislative overhaul works, there may be fewer consumer law cases going to court. Meanwhile, law firms should be encouraging businesses to review their returns policies, and terms and conditions, to ensure compliance. Stand still and you risk losing out. So, caveat venditor – let the seller beware. SJ

David Kirwan is managing partner at Kirwans