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Sales and the duty to disclose
On 1 October 2013 the Consumer Protection from Unfair Trading Regulations 2008 (“the Regulations”) replaced the Property Misdescriptions Act 1991. This has had an important consequence for all parks, as the Regulations apply to all business-to-consumer transactions which includes holiday caravan and residential mobile home sales.
The Regulations impose a duty on all park owners to act with professional diligence. Where there is a contravention of this duty the park owner will be considered to have carried out an unfair commercial practice. There are many instances where a park owner’s practices could be considered unfair, these include misleading sales, methods of calculating sale prices and procedures for handling complaints.
The enforcement of the Regulations is generally carried out by Trading Standards who will apply a test to determine whether there has been a contravention. The test is whether a park owner has unfairly influenced a transactional decision of a consumer. Under this test there will be contravention of a park owner’s duty where information which is likely to cause an average consumer to change their mind about transaction is not disclosed.
The regulations apply to all parks’ business dealings and are very likely to apply to parks’ employees, therefore it is vital that park owners ensure all their employees are trained on what they should and should not say to potential purchasers.
If you have any questions relating to the Consumer Protection from Unfair Trading Regulations 2008 please contact the parks team on telephone 01392 207020 or email email@example.com