Understanding Your Legal Obligations: Dealing with Faulty Goods Under the Consumer Rights Act 2015

If you’re a business owner in England, selling goods to customers is likely a core part of what you do. But what happens when those goods aren’t quite up to scratch? Maybe an electrical appliance malfunctions on day one, a batch of clothes has stitching flaws, or a customer returns a gadget insisting it’s “not fit for purpose.” Understanding your legal obligations under the Consumer Rights Act 2015 can make all the difference in handling these situations correctly-and confidently.

No one likes receiving complaints about faulty items, but knowing where the law stands can protect your business and your customers. In this article, we’ll break down-step by step-how the Consumer Rights Act 2015 covers faulty goods, what “defective” or “not fit for purpose” really mean, what rights consumers have, and your responsibilities as a seller. We’ll offer practical examples, tips to stay on the right side of the law, and walk you through what to do if a customer brings back damaged goods or claims a refund.

Ready to get your legal foundations for selling goods rock-solid? Let’s dive in.

What Is the Consumer Rights Act 2015-and Why Does It Matter for Faulty Goods?

The Consumer Rights Act 2015 is the key piece of UK legislation setting out consumer rights when buying goods, digital content, or services. For business owners, this law spells out your obligations and exposes you to claims if you don’t deliver on the standards the Act sets.

When it comes to selling physical goods (think: electronics, clothing, furniture, appliances, toys, and more), the Consumer Rights Act sets out three “golden rules”:

• The goods must be of satisfactory quality (free from faults or defects and durable enough for normal use)
• The goods must be fit for their intended purpose (they must do what a reasonable person would expect of them)
• The goods must match their description (as advertised or presented at point of sale)

If you sell goods that fall below one or more of these thresholds, they’re regarded as “faulty” (or “defective”)-and your customer is legally entitled to certain remedies.

These rules apply whether you’re selling online, in store, or via another channel. It doesn’t matter if the issue was deliberate or accidental; the law’s focus is on the goods and the fairness to the consumer.

What Does “Faulty” or “Defective” Mean for Consumer Goods?

You’re likely familiar with terms like faulty item or damaged goods, but the legal meaning is specific. Under the Consumer Rights Act, goods may be classed as “faulty” or “defective” if they are:

• Not working as intended (e.g., won’t turn on, parts malfunction)
• Missing parts or components that are essential
• Physically damaged or substandard (for example, cracked screen or bad stitching on clothing)
• Do not perform the basic functions expected (like a waterproof jacket that leaks)
• Unsafe or likely to cause harm
• Do not match their description or sample
• Don’t last a reasonable amount of time (for example, shoes that fall apart after a week’s use)

The bottom line: If a reasonable consumer would reject the goods on the grounds of quality, fitness for purpose, or matching description, they are “faulty” in the eyes of the law.

What Are a Consumer’s Rights If Goods Are Faulty?

When it comes to Consumer Rights Act faulty goods claims, customers have a tiered system of remedies to protect them-starting with the “30-day right to reject.”

1. 30-Day Right to Reject For Faulty Goods

If the problem emerges within 30 days of purchase (or delivery, if goods are shipped), consumers have the right to:

• Reject the goods and return them for a full refund
• Do this without having to accept a repair, replacement, or store credit first

To use this right, your customer must actually give the goods back-they can’t ask for a refund and keep the product! For example, if you sell a toaster that fails to heat up after a couple of uses, your customer can return it for a complete refund, provided it’s within 30 days.

As a seller, you’re obliged to process the refund quickly (usually within 14 days of agreeing to the rejection) and shouldn’t deduct any “restocking” fees.

If you want more on meeting consumer protection rules, check out our guide on consumer protection laws in the UK.

2. Repairs Or Replacements After 30 Days

After the first 30 days, the consumer’s rights don’t disappear-they change. From days 31 to 6 months, your customer is entitled to:

• Request a repair or a replacement free of charge
• Have the faulty item fixed or swapped within a reasonable time, with minimal inconvenience

If you can’t repair or replace the goods (for example, it’s out of stock or can’t be fixed), the customer can then usually claim a full or partial refund.

Here’s an example: Let’s say you sell a washing machine which after two months starts leaking badly. The customer asks for a replacement, but you’re unable to provide one. In this case, they can reject the item for their money back-in full if the issue is serious and close in time, or partial if there’s been significant use.

Note: There are rare exceptions-such as perishable goods or digital products-so it’s wise to check the specifics for your industry.

Need to know more about the standards your business must comply with? See our article on complying with business regulations.

3. Your Obligations After 6 Months

For the first six months, the law generally assumes any defect or problem existed at the time of sale unless you can prove otherwise. After that, customers can still seek repairs, replacements, or refunds, but the burden of proof flips-they need to show that the issue wasn’t “wear and tear” or a result of misuse.

Even after these periods, longer-term warranties and guarantees may give extra rights, but your statutory duties under the Consumer Rights Act take precedence.

How Long Does a Consumer Have to Claim “Goods Not Fit For Purpose”?

A common question is about the time limit for making a claim when goods are “not fit for purpose.” Under the Consumer Rights Act, as explained above, the initial 30-day period gives consumers the strongest right to a refund. Thereafter, they generally have up to six years (in England and Wales) to bring a legal claim against you for defective goods, but the nature of the remedy may change over time (for instance, adjustments for “usage” before a partial refund).

If a customer returns a product after 12 months citing a manufacturing defect they could not have spotted earlier, they're not out of luck-but expectations are different. They must show that the fault wasn’t caused by them or normal use. Your obligations don’t evaporate when that 30 days is up.

What If a Faulty Product Causes Further Damage?

Sometimes the issue isn’t just a faulty gadget-it’s the knock-on effect it can have. If a product you supply causes additional property damage (for example, a leaking washing machine ruining a customer’s kitchen floor), your customer may have the right to claim for both the original product and the extra losses.

That’s why ensuring your goods are safe and well-made is crucial-liability can escalate quickly.

Depending on the circumstances, you could be liable under both the Consumer Rights Act and product liability laws. In some cases, the Product Liability Act also applies if someone is injured or property is damaged as a result of a defective product.

Not sure what counts as product liability risk? Learn more in our guide to product liability in the UK.

Customers Must “Mitigate” Additional Loss

There’s another important legal principle at play-customers are expected to take reasonable action to minimise any extra losses. In other words, a customer who sees a water leak and lets it flood the house for a week can’t expect you to pay for every bit of the subsequent damage. Buyers must act sensibly in response to problems.

What Responsibility Do You Have For Used, Sale, or Discounted Goods?

You might be wondering if selling “as is,” seconds, ex-display, or used goods lets you off the hook. The Consumer Rights Act still applies; customers must be made aware of faults before purchase and the goods still must match the description and be safe. You can’t use “sold as seen” to avoid responsibility for undisclosed faults or safety issues.

If you’re offering discounted goods because they have a scratch or are missing a part, always make the defect clear in writing. Otherwise, you could be opening yourself up to returns or worse-legal trouble.

How Should Businesses Handle Faulty Goods Complaints?

Nobody enjoys dealing with returns or complaints, but handling them well is part of running a responsible business. Here are some practical steps:

• Be prompt-respond to complaints quickly and listen to your customer’s side
• Check your documentation-make sure your business terms and conditions (or returns policy) align with the law
• Offer the correct remedy-don’t refuse a refund in the first 30 days, and remember your repair/replace/refund duties afterward
• Document what happens-keep records of communications, tests, or repairs
• Don’t ignore trading standards-if contacted by Trading Standards, respond; they can investigate complaints if there are repeat issues or consumer law breaches
• Seek legal advice if unsure-complex or high-value claims, especially those involving consequential damage, are best handled with expert help

How Can You Prevent Problems With Faulty Goods?

The best cure is prevention! Here’s how to minimise the risk of complaints and ensure you comply with your obligations:

• Source goods from reputable suppliers and set quality checks
• Use clear, detailed descriptions in advertising and on receipts
• Ensure all staff handling returns know the law and your internal processes
• Regularly review your terms and conditions so they reflect up-to-date consumer rights
• Consider product liability insurance where appropriate

If you need template terms, or want a review of your returns policy, see our guide on how to handle returns, refunds, and exchanges.

What About the Sale of Goods Act-Does It Still Apply?

You might have heard of the Sale of Goods Act; it was the main law for consumer rights in the UK for many years. In most cases, however, it has been replaced by the Consumer Rights Act 2015 for sales made after October 2015. If you’re dealing with historic contracts or pre-2015 sales, the old rules may apply, but assume the Consumer Rights Act is your guiding framework for current transactions.

How Can Sprintlaw Help Your Business Stay Compliant?

Tackling consumer complaints about defective or “not fit for purpose” goods can be stressful, but with the right approach and strong knowledge of your legal duties, you can handle them with ease-and avoid repeat issues. Remember, making sure your contracts, processes, and training are up to date is an investment in your business’s reputation and compliance.

If you need help drafting or reviewing your returns policy, understanding customer rights regarding faulty goods, or managing a tricky claim, our legal experts are here to help. From terms and conditions to bespoke legal documents and ongoing advice, Sprintlaw has you covered.

Check out our legal essentials for business owners for even more guidance-whether you’re new to selling goods or looking to refresh your processes.

Key Takeaways

• The Consumer Rights Act 2015 protects consumers when goods are not of satisfactory quality, fit for purpose, or as described.
• Customers have a 30-day right to reject faulty goods for a full refund-and further rights to repair, replacement, or refund after 30 days.
• After six months, different rules on burden of proof apply, but customers can still claim for defects present at the time of sale.
• If a product causes additional damage (like property damage), you may be liable to reimburse both for the defective goods and other losses, unless the customer failed to “mitigate” those losses reasonably.
• Your business’s terms and procedures must comply with the Act, including how you handle returns and complaints-regardless of sale method (online, in-store, etc.).
• Stay proactive: keep product descriptions accurate, train your staff on consumer rights, and seek legal help for complex issues or high-value complaints.
• Don't rely on “sold as seen” or similar disclaimers to avoid responsibility for major faults or safety problems.

Being prepared and informed empowers you to grow your business with confidence-knowing you’re protected from day one.

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If you need further help navigating your obligations under the Consumer Rights Act 2015, updating your terms and policies, or responding to a faulty goods claim, we’re here for you. You can reach the Sprintlaw team at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat about your legal needs.