Laws applying to traders
When does the law consider you to be a trader?
There is no hard-and-fast rule, but ask yourself:
- Are the goods you are selling your personal property? If not and you buy goods to resell, for example from newspaper adverts, a cash and carry or the internet, you are probably a trader.
- Do you sell at boot sales regularly – once every couple of months or more? If so, you are probably a trader even if boot sales are not a major source of income.
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Do you employ anyone to help you with sales? If so, you are probably a trader.
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Do you sell similar goods at other venues, e.g. markets, in the street or from home? If so, you are almost certainly a trader.
Traders and the law
All traders should be aware of these laws.
Companies Act
If you don't trade under your own name you must display your name and address clearly so you can receive legal documents.
Consumer Protection Act
Take great care that everything you sell is safe. Be particularly careful with toys, electrical goods, upholstered furniture and clothing, especially nightwear.
Consumer Protection from Unfair Trading Regulations
Unfair commercial practices are banned.
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It is an offence to charge a buyer more than the advertised price of goods. It is also illegal to mislead buyers in other ways about the price of goods, for example by using price comparisons or 'sale' signs when the higher price you quote in comparison is unfair or meaningless.
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It is an offence to display any sign which tries to limit a buyer's rights. Do not use signs like 'no refunds' or 'sold as seen'. As well as being illegal, these signs do not, in fact, limit buyers' rights at all.
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Do not misdescribe goods and services. Before selling recorded or branded items such as cassettes, video films or t-shirts, satisfy yourself that they are not counterfeit. There are heavy penalties for anyone who breaches copyright by selling fakes.
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It is an offence to hide or omit material information.
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It is an offence to engage in aggressive commercial practices.
Price Marking Order
You must show a price in writing for all goods offered for sale. You can attach this to the goods or put it next to them.
Video Recordings Act
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If you sell films that have not been properly classified by the British Board of Film Classification you could be fined to £20,000 per tape or get a prison sentence.
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Certain educational, sport and music videos are exempt from this requirement.
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You should take more detailed advice on the Video Recordings Act before selling video films.
Sale of Goods Act
If you sell something, whether new or second hand, it should be of satisfactory quality and fit for its purpose. It should also be as you describe it.
If you sell something that does not meet these requirements, your customer has a right to a refund as long as they reject goods promptly. They might agree to a replacement, but their right is to a refund, which you must honour. If you are selling something with defects, you can only escape your obligation to provide a refund if you point out the fault at the time of the sale. Doing this doesn't protect you from a claim if the item has other faults.
Unlike the other acts mentioned, we cannot prosecute you for breaking the Sale of Goods Act, your customers could sue you.