Digital Content and Consumer Law
As of 1st October 2015 there has been a change in the UK law relating to the sale of ‘digital content’ or ‘data that is produced or supplied in a digital form’. In a layman’s terms this could be a consumer buying an app or downloading a paid for video through to receiving antivirus software on a PC.
The new Consumer Rights Act 2015 brings into line the sale of Digital Content with respect to former laws that have governed the sale of Goods & Services and sets out the remedies available to the consumer in the event of a problem with their purchase. Examples of Digital Content covered by the new legislation:
| Included | Excluded |
| Audiovisual content: Books, videos & music | Online shop selling goods |
| Computer software | Online banking services |
| Mobile apps & ringtones | Mobile service contract |
| Computer games | |
| Virtual items (purchased within a computer game) | |
| System software for operating goods: domestic appliances, toys, motor vehicles, etc. |
What the Consumer Should Expect
The key highlights from the Act state digital content must achieve a set of standards. These standards are applicable to every transaction and outline that digital content must be:
| Of satisfactory quality | This is open to interpretation but the following aspects could be considered as relevant:
|
| Fit for a particular purpose
|
If a consumer makes it known to the trader (either expressly or by implication) any particular purpose for which the consumer is buying it for
There is an exemption note here that confirms sending an email immediately before purchase won’t be enough, the trader must be given sufficient time to respond to the consumer query |
| Digital Content is as described | Traders will need to accurately describe the content and the content must match the description supplied |
| Pre Contract Information | Traders will need to include in the contract the main characteristics, functionality and compatibility of the Digital Content in advance of purchase Digital Content in advance of purchase |
| Right to supply | This has been previously covered in other laws but here we see the strengthening of Digital Right Management (DRM), but this new law will only apply when the content has been paid for by the consumer |
And then Digital Content is also now required to meet all of the applicable conditions of the Consumer Rights Act covered in our previous report.
How Digital Content Remedies will be Applied
The statutory remedies available to a consumer, if their rights have been breached, will be 3 fold:
- The consumer may request a repair or replacement (where possible)
- Failing a prompt and convenient solution to point 1 – the consumer will have access to price reduction (note this could mean a 100% refund)
- Finally an additional remedy will be enforced which entitles the consumer to claim for damages to hardware or software caused by defective digital content. An example of this would be if a virus infected a PC as substandard virus protection software was supplied (even if the software came free when the consumer purchased a computer) or if an app had allowed Trojan code to enter into the mix.
While the change in law is welcome news for consumers, what does it mean for traders? The remedies have swung 180 degrees in favor of the buyer and the impact of the change will potentially be significant within burgeoning industries such as the (predicted 2016) $143b app economy or the many companies who have adopted a paid for content approach within their business model. Certainly the move towards clearly defining what Digital Content is, how situations should be treated when something goes wrong or what happens when a mix of goods and digital content is sold as a package, is a step in the right direction. But I suspect it will be a number of years before consumers comprehend the law and find their voice or the Trading Standard Services flex their muscles (with respect to the new legislation) and we see any prosecutions in court.
Here at Ness we work closely with leading brands who supply world class Digital Content to millions of consumers across the globe. Understanding the importance of the new regulations and ensuring the customer experience is compliant, relevant and optimized at each stage is achieved through our expert team of software engineers who maintain the highest standards in quality control, user experience practitioners and data scientists.
To speak to one of our consultants on how your business could be thriving in the Digital Economy please contact us today.
Source: The National Archives on behalf of HM Government
http://www.legislation.gov.uk/ukpga/2015/15/contents/enacted
