For goods, digital content and services the Ordinance codifies rules that likely already exist under contract law as implied terms in consumer contracts.
By codifying these rules and making it law that they are implied terms of consumer contracts, traders have clarity on the extent of their responsibilities and it helps ensure fair competition.
This part also provides explicit remedies for breaches of the requirements, providing certainty to both traders and consumers on appropriate resolutions.
Digital content is data which is produced or supplied in digital form.
Rights
Digital content must be of satisfactory quality
- The trader must have the right to transfer as much possession/ownership of the goods as agreed in the contract at the time the possession/ownership is to be transferred.
- The goods must be free from charges/encumbrances not made known to consumers beforehand. The consumer must enjoy quiet possession.
Digital content must be fir for particular purpose made known
- If the consumer tells the trader they intend to use the goods for a particular purpose, regardless whether that purpose is what the goods are normally used for, and it's reasonable for the consumer to rely on the trader's knowledge and expertise, and the trader sells the consumer the goods, the goods have to be fit for that purpose.
Digital content must be as described
- Digital content must match any description given by the trader.
- Where a trial version was examined, the digital content must be as described and match the trial version.
Part III information must be included
- This information is treated as a term of the contract and any change to it is only effective if agreed by the consumer.
Transmission of digital content
- Digital content is supplied when it reaches the consumer's device, or, if earlier, when it reaches another trader chosen by the consumer to supply a service by which digital content reaches the device.
- Consumers must have access for a reasonable time to the facility to receive/transmit digital content if such a facility is part of the contract.
Updates to digital content
- When digital content is updated, the new version must be of satisfactory quality, fit for purpose and as described.
- If it doesn't, it's taken to not have conformed at time contract was formed, not when update was made.
Trader must have the right to supply digital content
- The trader must have the right to transfer as much possession/ownership of the goods as agreed in the contract at the time the possession/ownership is to be transferred.
- The goods must be free from charges/encumbrances not made known to consumers beforehand. The consumer must enjoy quiet possession.
Remedies
Repair or replacement
- Repair/replacement must be provided within a reasonable time and without significant inconvenience to the consumer. The trader must bear the necessary costs.
- The consumer cannot require either remedy if disproportionate to the other or impossible.
- Once a remedy has been agreed, the consumer must give the trader an opportunity to complete it.
Price reduction
- Right to price reduction is available when:
- After one failed repair/replacement,
- Repair/replacement is impossible or disproportionate,
- Trader did not repair/replace the digital content within a reasonable time,
- Trader did not repair/replace the digital content without significant inconvenience.
Price reduction and Right to Refund
- With a price reduction, the consumer receives an appropriate reduction price, which can be up to the full price. They receive a refund of anything over the reduced price they already paid.
- Right to a refund is the right to receive a refund of all money the consumer paid.
Damage caused by digital content
- The Ordinance creates liability for damage cause to other digital content or devices caused by digital content:
- If a trader supplies digital content under a contract,
- That digital content damages other digital content or a device,
- That belongs to the consumer,
- And the damage wouldn't have occurred if the trader had exercised reasonable care and skill,
- The trader must repair the damage or compensate the consumer.
