UK consumer law will soon receive a (welcome) overhaul with the introduction of the Digital Markets, Competition and Consumers Act 2024, but how can the upcoming changes benefit the equestrian community?
Avid equestrians will be familiar with the countless stories of horses being mis-sold as suitable for novices or safe for children when they are nothing of the sort. This results in unsuspecting buyers ending up with unsuitable horses (which have probably cost them a large chunk of their savings) and not much they can do about it. This is scary and upsetting for the new owners but also for the poor horses, who will likely end up getting passed around.
There are hundreds of posts on social media where this has happened to somebody who is desperately asking what they can do about it. In the comments section, people usually try to explain how consumer law is supposed to help but in reality, unless the case ends up going to court (and even then, there’s no guarantee of success), these dealers seem to get away with breaching consumer law, time and time again. This is undoubtedly because the current law requires the Competition and Markets Authority or ‘CMA’ (the regulator with powers to enforce consumer law) to take action through the courts, which is difficult, expensive and slow, meaning the CMA will only pursue much higher profile cases
So, what is changing, and will it help?
From April 2025, new law will grant the CMA direct enforcement powers – meaning it will not have to go through the court to use them – which will not only enable it to impose fines on traders who fail to comply with consumer law, but will also empower it to:
- require traders to provide evidence as to the accuracy of factual claims made in their commercial activity with consumers;
- issue online notices requiring the take-down of infringing material both by traders and UK-based third parties, such as websites or apps (eg horse sales websites or apps);
- disable or restrict access to such websites and apps;
- display a warning to consumers accessing such websites or apps;
- obtain warrants to enter premises to access documents that are stored remotely; and
- require traders not only to compensate consumers but to take other remedial steps as well.
The CMA can use these powers against traders in the UK and traders outside the UK who direct their activities to consumers in the UK.
From a horse purchaser’s perspective, these new powers are interesting. A dealer prevented from advertising horses on well-known websites or apps, for example, may lose a significant portion of their advertising reach which could seriously affect their ability to continue trading. Equally, a warning placed on the dealer’s own website would alert potential buyers to look elsewhere. In the context of horses as ‘goods’ (in the eyes of the law), the power to require traders to take remedial steps could extend to obliging dealers to accept the return of a mis-sold horse and provide a refund.
Let’s not forget that there are good dealers out there who are also negatively affected by the actions of the dishonest ones. Today’s buyers are (sadly but quite rightly) mistrusting of horse dealers, making life much more difficult for those who are conducting genuine and honest business. Hopefully, the CMA’s new enforcement powers will benefit these essential small businesses, as well as the consumers.
Of course, there is still the risk that a targeted dealer could take steps to avoid sanctions, but the CMAs new powers certainly seem like a step in the right direction, and it will be interesting to see whether they bring about much needed change.