Terms Implied by the Consumer Rights Act
In our previous discussion, we explored how the Sale of Goods Act 1979 (SGA) implied certain terms into contracts for the sale of goods, and how parties might seek to limit or exclude liability for breaches of those terms. That analysis was rooted in business-to-business contexts and the framework of the Unfair Contract Terms Act 1977 (UCTA).
But the story does not end there. With the growing importance of consumer protection, Parliament introduced the Consumer Rights Act 2015 (CRA), which restructured the law for consumer contracts. While the SGA and UCTA continue to apply in commercial dealings, the CRA is now the key statute governing contracts between traders and consumers.
Why the CRA Matters
The CRA reflects two important developments:
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The shift from traditional goods-based contracts to a modern economy of digital products and services.
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The need to provide robust, non-excludable protections for consumers who often lack equal bargaining power.
Unlike the SGA, where exclusion clauses might be tested for “reasonableness,” the CRA takes a far stricter stance: key consumer rights cannot be waived or contracted out of.
Implied Terms under the CRA
The CRA consolidates and modernises implied terms across three broad categories:
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Goods (Part 1, Chapter 2)
Every consumer contract for goods automatically includes terms that the goods must be:
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of satisfactory quality (s.9)
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fit for a particular purpose (s.10)
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as described (s.11)
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matching any sample or model seen (s.13)
Example : A consumer orders a “waterproof smartwatch” online. If it fails after brief exposure to rain, this breaches both the quality and fitness implied terms. The trader cannot hide behind small print disclaimers—these obligations are statutory and unwaivable.
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Digital Content (Part 1, Chapter 3)
For the first time, Parliament extended implied terms to digital content. This includes apps, streaming services, downloadable games, and even AI-driven tools. The implied terms are:
Example : A consumer downloads an educational app that promises offline functionality. In practice, it only works with Wi-Fi. This breach engages as described (s.36), giving the consumer a right to remedies, such as a refund.
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Services (Part 1, Chapter 4)
Contracts for services include terms that the trader must:
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Perform the service with reasonable care and skill (s.49)
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Perform the service within a reasonable time (s.52), where no time is agreed
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Charge a reasonable price (s.51), if no price is set
Example : A broadband provider undertakes to install internet “promptly.” If installation drags on for three months, the trader may be in breach of the implied obligation to perform within a reasonable time.
Remedies for Breach
The CRA introduces a structured system of consumer remedies, reflecting a move away from uncertain common law damages. For instance:
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Goods:
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Short-term right to reject within 30 days (s.20)
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Right to repair or replacement (s.23)
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Final right to price reduction or rejection if repair/replacement fails (s.24)
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Digital Content:
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Right to repair or replacement (s.43)
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Right to price reduction if repair/replacement is impossible or ineffective (s.44)
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Liability for damage caused by defective digital content (s.46)
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Services:
Unlike the SGA framework, these remedies are explicitly consumer-focused and non-excludable. Section 31 CRA makes clear that any attempt to exclude or limit liability for breaches of the implied terms relating to goods, digital content, or services is not binding on the consumer.
Practical Implications in now days
The CRA has profound effects on modern commerce, particularly in the digital economy:
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Streaming services cannot disclaim responsibility if a platform consistently fails to deliver promised 4K quality.
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Smart home devices that do not integrate with widely advertised systems (e.g., Alexa or Google Home) may breach the “fitness for purpose” requirement.
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AI tools or apps that misrepresent their capabilities (e.g., claiming offline data privacy while secretly uploading to cloud servers) fall foul of the “as described” obligation.
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Subscription models must provide clear terms. Hidden auto-renewals without transparent notice may clash with fairness and transparency requirements under Part 2 of the CRA.
Why This Shift Matters
The CRA illustrates Parliament’s recognition that consumers rarely negotiate contract terms in practice. Instead, they face standardised contracts drafted by powerful traders. Whereas UCTA balanced business freedom with fairness, the CRA removes the balancing act altogether: consumers simply cannot be stripped of their core statutory rights.
This is not just legal formalism—it directly shapes how businesses must design contracts, draft terms and conditions, and deliver products and services in 2025. Traders who ignore these statutory obligations risk not only court action but also reputational damage in an era where consumer trust is everything.
Which of the following is NOT an implied term for goods under the Consumer Rights Act 2015?
Goods must be insured by the seller.
Goods must be of satisfactory quality.
Goods must match the description.
What is the CRA’s stance on exclusion clauses for consumer contracts?
Key consumer rights cannot be waived or contracted out.
Exclusion clauses are allowed if signed electronically.
Exclusion is allowed if goods are low-value.
Which of the following remedies does the CRA give consumers for defective goods?
Short-term right to reject within 30 days, right to repair or replacement, and price reduction if repair fails.
Only the right to ask for an apology.
Right to take the trader to small claims court only.
Which CRA section covers digital content fitness for purpose?
