Prohibit traders across all sectors from using unfair commercial practices that hinder consumers from making informed purchasing decisions.
(1) Unfair commercial practices are prohibited.
(2) Paragraphs (3) and (4) set out the circumstances when a commercial practice is unfair.
(3) A commercial practice is unfair if—
(a) it contravenes the requirements of professional diligence; and
(b) it materially distorts or is likely to materially distort the economic behaviour of the average consumer with regard to the product.
(4) A commercial practice is unfair if—
(a) it is a misleading action under the provisions of regulation 5;
(b) it is a misleading omission under the provisions of regulation 6;
(c) it is aggressive under the provisions of regulation 7; or
(d) it is listed in Schedule 1.
Viagogo was held liable for failing to provide actual ticket prices, misleading customers about ticket availability, and imposing unfair deadlines for claiming refunds under their guarantee.
CMA held Microsoft liable for unclear upfront terms, difficulty in turning off auto-renewal, and customers unknowingly paying for unused services in their auto-renewing Xbox Live Gold and Game Pass memberships.
The OFT held websites liable having unverified testimonials and failure to allow price comparison on its sites.
Adaptive Affinity was held liable as its consumers were being signed up to online credit score and discount reward membership schemes and being charged a monthly subscription fee for each service.