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The call for evidence "Protection of small businesses when purchasing goods
Launched by the Department for Business Innovation and Skills closes at the end of June.
We would like to draw your attention to the following government "call for evidence" exploring the possibility of extending the consumer rights protection to small businesses. The call for evidence "Protection of small businesses when purchasing goods and services" was launched by the Department for Business Innovation and Skills and closes at the end of June.
The document is looking at whether "the current legislative framework regarding the sale and supply of goods and services to micro and/or small businesses sufficiently protects them; or whether there is a gap in the law; and the potential impacts of applying certain consumer protections to micro and/or small businesses". Micro businesses are defined as those with 0-9 employees (including sole traders) and small businesses are firms which employ 10-49 employees. This can potentially impact technology businesses, including providers of technology "goods", services, as well digital content / software - particularly as the new consumer rights legislation for the first time includes provisions around digital content.
The call for evidence is specifically aims to help government understand the following two points:
- The nature and scale of any problem. In particular:
a. The benefits that the current arrangements bring to MSBs (for example in the ease of business transactions and the freedom to contract); and
b. The costs of the current arrangements, including any abuses in market transactions, and/or harm or disparity arising from the current arrangements. - The impact and consequences of extending specific consumer protection provisions to MSBs. In particular:
a. The benefits of addressing any problems (including the benefits to business transactions); and
b. The costs of extending consumer protection provisions to MSBs, including on the MSBs who supply goods and services to other MSBs."
techUK is considering responding to the call for evidence on behalf of its members. If you have any thoughts on the topic or specific questions included in the call for evidence (pages 26-30), please do let us know by Monday, 22 June.
