NEW LEGISLATION - 19.01.2010

Information now required up front

It’s European. On December 28 2009, the government introduced the Provision of Services Regulations 2009. Unless you operate in one of the few excluded sectors, e.g. financial and healthcare services, it’s likely they will apply to your company.

Speak up! The Regulations impose a strict requirement on “service providers” to disclose a wide range of information to customers regardless of whether they are businesses or consumers (see The next step). For example, as well as your company’s name and contact details you must now make them aware of who to contact if they have a complaint and whether your business is a member of a trade association.

Compliance. You can provide the required information by: (1) sending it to customers; (2) putting it on a website; (3) referring to it in documentation; or (4) by having it readily accessible when the service is provided, or a contract is concluded, e.g. by letter. The easiest way to comply with the Regulations is to put all the relevant information into your terms and conditions.

No hassles. As irritating as this piece of legislation sounds, directors like you shouldn’t really find it too troublesome. After all, under the Companies Act 2006 you are already obliged to make full details about your company, e.g. its name, status, company number, readily available.

Enforcement? Under the Enterprise Act 2002 onlythe Office of Fair Trading (OFT) can take action against service providers - individuals must go via the courts. But the OFT hasn’t started enforcement yet, so it remains to be seen what approach it will take.

Tip. If you only sell goods, rather than provide a service, the Regulations don’t apply. But if you do both, you still need to take them on board.

For a list of details that must now be disclosed (CD 11.08.01A) and for further information on the Provision of Services Regulations 2009 (CD 11.08.01B), visit http://companydirector.indicator.co.uk.