NFDA on CTSI consumer law guide for used car industry

The Chartered Trading Standards Institute (CTSI) has published a free guide on consumer law for the UK used car industry, titled Car Traders and Consumer Law.

In response, NFDA voiced its concern with the guidance document’s interpretation of the Consumer Rights Act 2015, particularly in areas where it said the guidance “fails to account for context and nuance in the sales process and exceeds what is required by the Act.”

“It is disappointing that following a number of responses, including our detailed comments on the draft guidance consultation, the Chartered Trading Standards Institute has ignored the majority of the issues NFDA had outlined alongside other industry trade bodies”, said Sue Robinson, director of the NFDA.

The UK used car market is key to the success of the automotive industry and the economy of the UK with 7.9 million used cars sold in 2019 according to the SMMT. Additionally, evidence from the independently conducted NFDA Consumer Attitude Survey 2019 showed more than half of UK motorists (55 per cent) plan to buy a used vehicle as their next car.

Robinson added, “We are concerned that the guide does not provide a clear operating environment for dealers. NFDA will continue to liaise with CTSI and highlight franchised dealers’ concerns. We will be looking at the guide in detail and communicate further updates to our members.”

NAMA comments

“We are concerned that the report from the Chartered Trading Standards Institute (CTSI) has not considered the industry’s views,” said Louise Wallis, head of the nation association of Motor Auctions (NAMA), commenting on the CTSI’s Consumer Law Guide for the Used Car Industry.

NAMA has previously voiced concern to the CTSI during their consultation process about the content of the report, and its context.

The UK used car market is key to the success of the automotive industry and the economy of the UK with 7.9 million used cars sold in 2019 according to the SMMT. Of those, over a quarter, totalling around 2 million, are sold via motor auctions

Wallis continued, “we are worried that the guidance is not clear, and does not give auctions clarity of their legal position in terms of their operations.”