Does The Consumer Rights Act Apply To Businesses In The UK?

If you run a small business in the UK, you’ve probably heard a lot about the Consumer Rights Act 2015 (CRA). But here’s the question that trips many owners up: does the Consumer Rights Act apply to businesses?

The short answer is: the CRA protects consumers buying from you, but it does not give your business the same rights when you buy from other businesses. As a seller, you must comply with consumer law. As a buyer, your protection mainly comes from your contract and long‑standing laws like the Sale of Goods Act 1979, plus the Unfair Contract Terms Act 1977 (UCTA).

In this guide, we’ll break down exactly when the CRA applies, what changes when you sell to consumers vs sell to businesses, and how to set up your contracts and processes so you’re protected from day one.

Does The Consumer Rights Act Apply To Businesses?

The CRA applies when a trader sells to a “consumer”. A consumer is an individual acting for purposes wholly or mainly outside their trade, business, craft or profession. That means:

• When you sell to consumers (B2C): you must comply with the CRA (and related consumer laws).
• When you buy as a business (B2B): the CRA generally doesn’t apply to protect you as a buyer, even if you’re a small business or limited company.

There’s one nuance: a sole trader or partner who is an individual may count as a “consumer” for a particular purchase if the purpose is wholly or mainly personal (for example, a freelance photographer buying a laptop mainly for home use). But companies and LLPs are not consumers under the CRA. In most ordinary B2B deals, your rights come from your contract and from the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982, subject to UCTA’s reasonableness test.

If you sell to both consumers and businesses, you’ll need two playbooks: consumer‑compliant processes for B2C, and robust, negotiated terms for B2B. Understanding the line between the two will save you disputes and cost.

What The CRA Requires When You Sell To Consumers

If you sell to consumers, the CRA sets mandatory standards for goods, services and digital content. You can’t contract out of these rights. In practice, you must ensure:

Goods

• Goods must be of satisfactory quality, fit for purpose and as described.
• Consumers have short‑term rights to reject (usually 30 days), repair/replace, and final rights to price reduction or refund if issues persist.

Services

• Services must be performed with reasonable care and skill, within a reasonable time and at a reasonable price (if not agreed).
• If you fail to meet standards, the consumer can require repeat performance or a price reduction.

Digital Content

• Digital content must be of satisfactory quality, fit for purpose and as described, with specific remedies if it’s defective.

You’ll also need to consider related consumer rules such as the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 if you sell online or off‑premises, and the Consumer Protection from Unfair Trading Regulations 2008 (banning misleading actions/omissions). It’s worth revisiting your customer journey, refund process and documentation so they align with consumer law from end to end.

Not sure how refunds interact with quality issues? We’ve covered common scenarios in more detail, including what to do with faulty goods and practical tips on evidence, timelines and communication.

If You’re Buying As A Business, What Law Protects You?

When your business buys from another business, the CRA’s consumer‑only remedies don’t apply to you. Instead, your rights come from:

• Contract terms: your purchase order or supply agreement sets delivery obligations, quality, risk and liability.
• Sale of Goods Act 1979: basic implied terms (e.g., title, correspondence with description, satisfactory quality, fitness for purpose) unless excluded.
• Supply of Goods and Services Act 1982: reasonable care and skill for services, reasonable time and price if not otherwise agreed.
• Unfair Contract Terms Act 1977 (UCTA): limits how far liability can be excluded or restricted in B2B contracts via the “reasonableness” test.

Crucially, in B2B deals, many implied terms can be limited or excluded if the clause passes the UCTA reasonableness test (taking into account relative bargaining power, availability of insurance, and how clear the clause is). That’s why your negotiated terms matter so much more in B2B than in B2C.

What does “reasonable” look like in practice? As a rough guide, clauses that exclude liability for death or personal injury caused by negligence are prohibited, and sweeping “no liability for anything” wording is unlikely to be reasonable. Proportionate liability caps tied to contract value, fair time limits for claims, and carefully worded exclusions for indirect loss are more likely to pass muster.

To protect your position when you’re the buyer, push for clear specifications, acceptance testing, service levels, and meaningful remedies (repair, replacement, re‑performance or price adjustment). When you’re the seller, adopt balanced but protective terms with appropriate caps and carve‑outs. Our comparison of B2B vs B2C contracts sets out how your approach should shift between these two models.

Online And Distance Sales: Extra Rules To Watch

If you sell online, by phone or off‑premises, you’re likely caught by the Consumer Contracts Regulations. These rules require specific pre‑contract information, confirmation rights and cooling‑off periods for consumers. They also restrict pre‑ticked boxes and surprise charges.

As an online retailer, make sure your checkout flow, order confirmations and customer emails line up with the information and cancellation rights consumers are entitled to. You’ll also want a clear Returns Policy that reflects your legal duties while setting sensible, business‑friendly procedures for customers to follow. If you’re building or refreshing your ecommerce legals, use properly drafted Terms and Conditions that incorporate CRA and Consumer Contracts requirements, your delivery/returns process, and any platform‑specific obligations.

We’ve put together practical guidance on the Consumer Contracts rules for ecommerce and off‑premises sales in our guide to distance selling laws, and how to shape a customer‑friendly (and compliant) Returns Policy that reduces chargebacks and disputes.

Subscriptions, Auto‑Renewals And Cancellation Fees

Many small businesses now operate on subscriptions or rolling contracts. If your customers are consumers, you need to be transparent about auto‑renewal, renewal windows, notice requirements and how to cancel. Burying this information can be considered unfair or misleading.

Even in B2B, unclear renewal clauses can trigger disputes and unpaid invoices. Make renewal mechanics simple, highlight them at sign‑up, and send reminder notices before renewal dates for good practice (and to avoid reputational damage). Our guide to auto‑renewal covers both consumer expectations and B2B risk‑management.

Charging cancellation fees? For consumers, fees must reflect your genuine costs; “penalty” style charges are likely to be unfair. For business customers, you’ve got more room to set fees by contract, but they still need to be reasonable and clearly explained. We break down the do’s and don’ts around cancellation fees so you can avoid unfair‑terms pitfalls.

What Contracts And Policies Should You Have In Place?

Whether you’re B2C, B2B or a mix, strong, tailored documents keep you compliant and reduce risk. Aim to have:

Terms Of Sale (In‑Store Or B2B)

• Set quality, delivery, risk and title transfer; define acceptance; and include balanced liability caps.
• Include payment terms, interest on late payments, step‑in rights for failure to supply, and dispute resolution.
• Use clear warranty language that dovetails with your operational process.

It’s best to roll these into a professionally drafted Terms of Sale you can hand to B2B customers or display at point of sale as appropriate.

Online Terms And Conditions (B2C And B2B)

• Cover product descriptions, pricing, delivery timeframes, cancellations, returns and refunds.
• Build in consumer‑law remedies for B2C and any extra voluntary warranties, making sure wording doesn’t dilute mandatory rights.
• If you sell to businesses online, include a separate section for B2B terms (e.g., liability caps and governing law) and a way to identify the customer type.

If you sell online, your Terms and Conditions should align with your website flow and payment provider, so customers see key terms before they commit and receive confirmations after purchase.

Returns And Warranty Process

• Create a clear internal workflow so staff handle returns consistently and within statutory timescales.
• Map remedies (repair, replace, refund) to product categories and stock availability.
• Train your team to avoid promising more than your policy and law require, while still delivering great service.

For deeper insight into what customers can ask for (and when), check our explainer on warranty claims in a consumer‑law context, and use those rules to build a pragmatic, customer‑friendly policy.

Website And Checkout Compliance

• Make sure pre‑contract information is complete and easy to find before purchase (especially for distance and off‑premises sales).
• Use clear, plain language on pricing, delivery and any recurring charges.
• Remove pre‑ticked boxes for paid extras; they’re prohibited in consumer sales.

Supplier And Distributor Agreements

• Lock in quality specs, delivery schedules, acceptance tests and remedies for failure.
• Include IP and branding rules if third parties market or fulfill orders on your behalf.
• Align your upstream supplier warranties with the commitments you make to your own customers, so risk is back‑to‑back.

Templates rarely cover the nuances that protect profit margins, delivery timelines and brand reputation. Investing in the right Terms and Conditions and Terms of Sale will pay off the first time a tricky refund, delay or quality dispute crops up.

Practical Scenarios To Help You Draw The Line

You Sell A SaaS Subscription To A Sole Trader

Ask yourself: is the sole trader using the software wholly or mainly for business? If yes, it’s a B2B sale. The CRA won’t apply, but you still need a clear contract and transparent renewal/cancellation terms. If the use is mixed and mainly personal, CRA may apply. To avoid confusion, design your sign‑up flow so customers state whether they’re buying for business or personal use, and apply the right set of terms at checkout.

You Buy Components From A UK Supplier And They’re Defective

The CRA won’t protect you as a business buyer, but you may have a claim under the Sale of Goods Act 1979 if the items are not of satisfactory quality or don’t match the agreed description. Your contract may also give you express warranties or a right to reject within a certain acceptance period. Ensure your supply contracts include robust specs, acceptance testing and clear remedies that aren’t watered down by unreasonable exclusions.

You Run An Online Shop With Rolling Subscriptions

For consumer customers, ensure renewal transparency, reminder notices and simple cancellation. For business customers, clearly signpost renewal dates and notice periods. In both cases, avoid dark patterns and make it easy to turn off auto‑renew. A streamlined, compliant approach reduces chargebacks and charge‑off risk-and keeps regulators away.

You Want To Charge A “Restocking Fee”

With consumers, a broad “restocking fee” for returns may be unfair unless it reflects real costs and is clearly explained. With business customers, a reasonable fee can be agreed in your contract. Draft policy and terms so they match your actual operational costs and the law on cancellation fees, and make sure the wording you publish to customers is consistent across your website and invoices.

How To Get Compliant And Protect Your Business

Getting this right is part legal, part process. Here’s a simple roadmap:

1. Map Your Customer Types: Separate consumer vs business buyers at the start of the journey. Use different terms and processes where needed.
2. Refresh Your Contracts: Put in place tailored Terms of Sale for in‑store and wholesale, and fit‑for‑purpose online Terms and Conditions for ecommerce.
3. Align Your Processes: Train your team on returns, repairs, replacements and refunds. Make sure your CRM/warehouse processes support the time limits in the CRA.
4. Fix Your Checkout And Emails: Ensure pre‑contract information is clear, renewal/cancellation terms are front‑and‑centre, and confirmations contain all the required details under the Consumer Contracts Regulations.
5. Back‑To‑Back Your Supply Chain: Update supplier agreements so the warranties, SLAs and remedies you offer customers are mirrored upstream where possible.
6. Review Marketing And Pricing: Avoid misleading claims; be transparent about total costs and recurring charges. This is good practice under consumer law and reduces complaints.

If you’re unsure how your products and sales channels fit into the legal framework, it’s wise to get tailored advice before a regulator-or a customer dispute-forces a more urgent fix.

Key Takeaways

• The Consumer Rights Act 2015 protects consumers buying from you, but it generally does not apply when your business buys from another business.
• As a seller, you must meet CRA standards on quality and remedies for goods, services and digital content, and comply with the Consumer Contracts Regulations for online/off‑premises sales.
• As a business buyer, your rights come from your contract, the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982, limited by the UCTA reasonableness test.
• Use separate approaches for B2C and B2B. Consumer sales need CRA‑compliant processes; B2B sales rely on well‑drafted contracts with clear specs, liability caps and acceptance procedures.
• Be transparent with auto‑renewals and cancellations, and only charge cancellation fees that are fair and clearly explained.
• Invest in the right documents-robust Terms of Sale and online Terms and Conditions-and align your internal processes with consumer‑law timelines and remedies.
• When in doubt, check your obligations around distance selling laws, faulty goods and consumer law generally, and get tailored advice for edge cases (like mixed personal/business use).

If you’d like help tailoring your contracts and processes to stay compliant and protect your margins, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no‑obligations chat.