Trading Standards Enforcement Powers and Penalties
We regularly receive enquiries about the scope of Trading Standards enforcement powers, including if they can close a business, impose penalties for offences, whether their officers can enter business premises, and how the Trading Standards investigation process operates.
There are a number of Acts and Regulations which provide extensive protection to consumers in the UK in relation to the quality of goods, digital content and services. The Consumer Protection Act 1987, the Consumer Protection (Amendment) Regulations and the Consumer Rights Act 2015 impose obligations on sellers and traders to ensure that the products they sell accord with their description, are of satisfactory quality, and are fit for their intended purpose for which they are sold.
When such standards are proven not to have been met, private action may be taken by consumers seeking a variety of remedies for breaches of their statutory rights including refunds, replacements or price reductions.
Additionally, a variety of public investigators and enforcers, such as ‘Trading Standards’, can take enforcement action against traders for infringements of the legislative requirements.
‘Trading Standards’ is not an independent body but a description of a department maintained by every local council authority which enforces consumer protection through its officers, who investigate complaints and enforce the law.
The extensive powers of Trading Standards are contained within Schedule 5 of the Consumer Rights Act 2015 (‘the Act’) and in this article, Sukhdip Randhawa of KANGS comments upon some of those powers.
What Amounts to the Obstruction of an Enforcement Officer?
In all investigations, it is a criminal offence to obstruct an enforcer or an officer who is exercising the prescribed powers.
Part 5 of the Act, S.36(1) provides that a person commits an offence when:
- intentionally obstructing an enforcer or an officer of an enforcer who is exercising or seeking to exercise a power under the Act,
- intentionally failing to comply with a requirement properly imposed by an enforcer or an officer of an enforcer provided for within the Act,
- without reasonable cause, failing to give an enforcer or an officer of an enforcer any other assistance or information which the enforcer or officer reasonably requires of the person for a purpose for which the enforcer or officer may exercise a power under the Act.
What Powers do Trading Standards Officers have to enter Premises?
Schedule 5 of the Act provides considerable detail of the powers available to Trading Standards, although these may vary according to the legislation which they seek to enforce, and which may provide additional or different powers.
Trading Standards officers may enter business premises at any reasonable time in order to:
- inspect goods or premises,
- observe the conduct of a business,
- inspect goods and documents,
- test equipment,
- make a test purchase.
Trading Standards officers may generally enter domestic premises upon two days’ notice save where:
- a court warrant has been obtained,
- consent to enter has been given,
- there exists reasonable suspicion that the law has been broken,
- giving notice would defeat the purposes of the visit,
- where there is an imminent health or safety risk.
Where a breach of any trading standards law is suspected, officers can seize goods and documents.
Can Trading Standards Officers Order the Production of Information?
Schedule 5 of the Act provides as follows.
Sections 13-16. Where an enforcer, or an officer of an enforcer, has reasonable suspicion that a breach of the legislation has occurred, he may issue a Notice requiring a person to produce the information specified in that Notice.
- The Notice must be in writing and specify the:
- purpose for which the information is required,
- time within which the information must be provided,
- form in which the information must be provided,
- circumstances in which a financial penalty may be imposed for failure to comply.
The Notice may require the:
- creation of specific documents,
- provision of those documents to the enforcer.
Where a person fails to comply with a Notice, an application may be made to a court which may order the person in default to do anything which it considers reasonable.
Do Trading Standards Have Powers Outside Their Local Area?
Whilst Trading Standards predominantly monitor and prosecute offences within their designated area, where appropriate, they have powers outside of their normal field of operation.
There are also National Trading Standards Teams which target specific sectors or industries such as Estate Agency or Illegal Money Lending. Whilst these Teams may be based at one local authority, they will operate nationally in their area of expertise.
Section 222 of The Local Government Act 1972 provides as follows.
Where a local authority considers it expedient for the promotion or protection of the interests of the inhabitants of their area, they may:
- prosecute, or defend, or appear in any legal proceedings and, in the case of civil proceedings, may institute them in their own name, and
- in their own name, make representations in the interests of the inhabitants at any public inquiry held by or on behalf of any Minister, or public body under any enactment.
However, in R v AUH (Secretary of State for Business, Energy and Industrial Strategy intervening [2022] EWCA Crim 1113), it was confirmed that the powers of local authorities to prosecute consumer offences outside their own area, were not now bound by section 222 above.
What are the Penalties for being Convicted of Trading Standards Offences?
A court can impose a wide range of penalties including:
- anyone obstructing an officer can be subject to a fine of up to £1,000,
- a formal warning may be given, where it is in the public interest to do so,
- whilst most offences may be punished with a fine, more serious offences may attract a period of imprisonment of up to two years plus a fine,
- the payment of compensation to victims,
- the forfeiture of illegal goods,
- a Director Disqualification Order against one or more company directors,
- a Criminal Behaviour Order.
How can we assist with Trading Standards Investigations?
The team at KANGS has extensive experience providing legal advice, guidance and representation to clients under investigation or subject to enforcement action by Trading Standards.
Whether charged with an offence under Consumer Protection laws such as food safety and fair trading breaches, counterfeit goods or product safety matters, we are able to provide assistance.
Furthermore, our solicitors offer legal support if you are invited to attend an interview with Trading Standards or if court proceedings are commenced. If we can assist, please do not hesitate to contact our Team using the details below:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through video conferencing or telephone.
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