Sales of Goods Act 1979 vs Consumer Rights Act 2015: What UK eCommerce Businesses Need to Know

Running an eCommerce business in the UK is more exciting and accessible than ever. But with all the possibilities comes a web of rules you have to navigate – especially when it comes to selling products or services online. If you've ever wondered, "Which laws do I have to follow when I sell online?" or been confused about the differences between the Sale of Goods Act 1979 and the Consumer Rights Act 2015, you're definitely not alone. Understanding these two pieces of legislation is essential for anyone selling online, whether you’re just setting up shop or scaling your existing online business. The truth is, getting this wrong could lead to unhappy customers, legal disputes, or even unnecessary expenses. Getting it right gives you peace of mind and helps build trust with your customers from day one. In this guide, we’ll break down exactly how the Sale of Goods Act 1979 and Consumer Rights Act 2015 work for UK eCommerce businesses, what each law requires, and how you can ensure you’re compliant – so you’re set up for success from the get-go.

What’s the Difference Between the Sale of Goods Act 1979 and the Consumer Rights Act 2015?

If you’re selling goods or services online, you’ll need to follow strict rules about what you sell and how you treat your customers. Two of the key laws in this area are the Sale of Goods Act 1979 and the Consumer Rights Act 2015 – but they apply in different ways. Let’s clear up the confusion:

• The Sale of Goods Act 1979 (sometimes called the Sales and Goods Act 1979) originally set the standards for goods sold in the UK, whether you sold to businesses or consumers. It made sure goods were as described, of satisfactory quality, and fit for purpose.
• The Consumer Rights Act 2015 replaced parts of the Sale of Goods Act 1979 for sales between businesses and consumers (B2C) – which is the typical situation for most eCommerce businesses selling to individuals. The Consumer Rights Act goes a step further by covering not just goods, but also services and digital content.

Here’s the key difference:

• If you’re selling to consumers (B2C), the Consumer Rights Act 2015 applies.
• If you’re selling to other businesses (B2B), the Sale of Goods Act 1979 still sets out the minimum standards for goods (but not services).

It's vital to know which law applies to each transaction – as the rules and your obligations change depending on who you’re selling to.

Who Does Each Law Apply To?

Let’s break it down even further:

Law	Applies To	Covers	Standards Required
Consumer Rights Act 2015	B2C transactions (business to consumer)	Goods & services (including digital content)	Fit for purpose, satisfactory quality, as described, reasonable cost for services
Sale of Goods Act 1979	B2B transactions (business to business)	Goods only	Of satisfactory quality, fit for purpose, as described (for goods only)

If you’re an eCommerce retailer, you’ll likely fall under the Consumer Rights Act 2015 for most sales – but if you do any B2B sales (such as wholesale), the Sale of Goods Act 1979 will still be relevant.

What Do These Laws Actually Require of Online Businesses?

Under the Consumer Rights Act 2015 (For B2C Sales)

If you sell goods or services to consumers (individuals not buying for their business), the Consumer Rights Act 2015 says you must make sure:

• Your goods are of satisfactory quality – that means they meet the standards a reasonable person would expect for the price, description, and any other relevant information (like images or samples).
• Goods are fit for purpose – they must do what they are supposed to do (including any specific purpose the consumer told you about).
• Goods are as described – everything from product descriptions on your site to advertising emails must accurately match what the customer receives.
• Services are provided with reasonable care and skill – if you offer web design, personal training, cleaning, or any service, it must be performed to the standard that a reasonable person would expect.
• If a price or timeframe isn’t agreed, the service must be completed for a reasonable price and within a reasonable time.
• Digital content (like apps or downloads) must also be of satisfactory quality, fit for purpose and as described.

These rights are often called consumer rights and it’s illegal for you to contract out of them.

Under the Sale of Goods Act 1979 (For B2B Sales)

When selling to other businesses, the Sale of Goods Act 1979 (sometimes searched as the "goods of sales act 1979" or "sale of goods act of 1979") applies. In summary, this Act says your goods must:

• Be of satisfactory quality.
• Be fit for their usual (and any specifically stated) purpose.
• Be as described (if there’s a description).

The big difference is: services aren’t covered by this Act. This means if you are delivering design services, consulting, or other non-goods-based B2B services, you need strong contracts to define your standards and obligations.

Goods vs Services: What’s the Legal Distinction?

It’s not just about what you sell – the law distinguishes between goods (physical items you can touch, like clothes, furniture, gadgets) and services (something you do for a customer, like design, consulting, or cleaning). The Consumer Rights Act 2015 applies to both, as well as digital content. The Sale of Goods Act 1979 only covers physical goods in B2B sales. As an eCommerce business, if you sell a mix (for instance, a website that sells both products and design services), make sure you comply with the right rules for each part of your business. When in doubt, seeking tailored advice can save you headaches down the track.

Returns, Refunds, and Customer Complaints: What’s Required?

One of the most common concerns for online sellers is dealing with returns or refunds. Both main Acts have different rules and rights for customers:

• Under the Consumer Rights Act 2015, consumers have clear rights to a repair, replacement, or refund if your goods or services don’t meet the required standards.
• With B2B transactions (Sale of Goods Act 1979), buyers can reject goods, claim damages, or seek a remedy if goods fail to meet the standards, but there’s often less protection than for consumers – and your contract terms will play a much larger role.

That’s why it’s so important to have returns and refunds policies that reflect your obligations and are easy for customers to find and understand. Similarly, make sure your service agreements are clear and align with current law.

What Are the Risks of Getting It Wrong?

Not complying with the correct laws can seriously harm your business. Here’s what can happen if you don’t meet your obligations:

• You may be required to give customers their money back (even years later), or replace/repair goods at your own expense.
• Trading Standards or other regulators could investigate your business, leading to fines, mandatory changes, or negative publicity.
• Breaching these laws can mean customer disputes, negative reviews, and damage to your reputation – which is hard to rebuild online.
• For B2B sales, a half-baked contract could leave you unable to enforce payment or liable for damages if goods aren’t up to standard.

It’s much easier (and far less costly) to put good compliance and legal practices in place right from the start.

How Can You Ensure Your Online Business is Legally Compliant?

Here are a few practical steps every UK eCommerce business should take to stay protected and compliant:

• Check who your customers are: Are you mainly selling to consumers, businesses, or both? This will determine which Act applies in different transactions.
• Review your product descriptions and advertisements: Make sure everything you say about your goods or services is accurate and not misleading.
• Have clear terms and conditions: All eCommerce sites should display up-to-date and legally compliant terms and conditions covering refunds, returns, buyer rights, and your core obligations. If you’re not sure what you need, have a legal expert review or draft them for you.
• Set up returns and refunds policies that are easy to find, reflect the law, and make customer service simpler.
• Use tailored contracts for B2B transactions: Don’t rely on generic templates for major business deals. Robust, bespoke contracts will help reduce disputes and make sure you’re covered under the Sale of Goods Act 1979.
• Keep up to date: The law evolves – requirements can change and new types of digital products may need extra compliance steps. Check for any new developments, and review your legal documents regularly.

If you want more detail on essential documents and compliance steps for your eCommerce business, check out our Online Business Bundle.

Frequently Asked Questions

What Is the Consumer Rights Act 2015?

This law governs the standards that must be met for goods, services, and digital content sold to consumers. If you sell to individual customers, this is the main law protecting their rights to refunds, repairs, or replacements, and dictates what information you must provide.

What Is the Sale of Goods Act 1979?

This is an older piece of legislation that now mainly applies to sales of goods between businesses (B2B). It requires goods to meet minimum standards relating to quality, fitness for purpose, and correspondence with descriptions. Note: The Sale of Goods Act does not cover services. If you’re selling services to a business, ensure you have a suitable service agreement in place.

Does the Sale of Goods Act 2015 Exist?

There is frequent confusion about a “Sale of Goods Act 2015”, but the correct modern law for consumer transactions is the Consumer Rights Act 2015. The Sale of Goods Act 1979 remains in force mainly for B2B sales.

What About Goods v Services?

The legal regime depends on whether you are selling goods or services, and whether your customer is a business or consumer. The Consumer Rights Act 2015 covers both when selling to consumers, while the Sale of Goods Act 1979 covers only goods (not services) sold to other businesses.

Key Takeaways

• The Consumer Rights Act 2015 now sets the standards for goods, services, and digital content sold to consumers by eCommerce businesses.
• The Sale of Goods Act 1979 still applies to B2B sales of goods, but not services – making a solid contract key for those business-to-business deals.
• Understand who your customer is (business or consumer), what you are selling (goods or services), and which law applies to each transaction.
• Make sure all product descriptions, website content, and sales materials are accurate and not misleading.
• Display clear and up-to-date terms and conditions and returns policies on your site.
• For B2B deals, invest in tailored, professionally written agreements.
• Regularly review your compliance with consumer and business laws – especially as your eCommerce business grows or changes its product/service range.
• Reach out for help if you’re unsure – legal experts can point out risks you might miss yourself, and help ensure you’re protected from day one.

If you’d like more information on how these laws affect your eCommerce business, or want tailored advice on drafting agreements, customer policies, or setting up your online store, you can reach our team at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat. We’re here to help you build your business on rock-solid legal foundations.