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OFT action leads to fairer deal for bed buyers

PN 113/03     14 August 2003

Craftmatic UK Ltd, a leading supplier of orthopaedic beds nationwide, has given written assurances to the OFT that it will deal fairly with consumers in future.

Craftmatic's products are aimed at those suffering from a variety of joint and muscle conditions often associated with the elderly or infirm. The sales take place during home visits by the company's sales staff. 

The OFT approached the company under the Stop Now Regulations (see note 1) after it had received a significant number of complaints from consumers and trading standards departments. The complaints were about sub-standard goods, goods not meeting their description, lack of cancellation rights and, following the exercise of the consumers' right of cancellation, failure to provide refunds within a reasonable period of time and  failure to return beds taken in part exchange. The company denied the complaints were well founded.

Craftmatic has given assurances that it will:

• operate an improved refund policy for customers wishing to cancel
• stop using the unfair term (see note 2) 'this and all other documents have been explained to me by the sales representative' in its contracts with consumers (the term required consumers to confirm that all documents had been explained to them when this may not be the case)
• stop requiring consumers to sign a 'Trade-In Certificate' for goods taken in part exchange that specified a deemed cash value of £1 for the goods, regardless of the part-exchange value allowed for the them. The OFT considered this to be another unfair term.

Penny Boys, OFT Executive Director, said:

'These assurances are a positive step. They address the main concerns raised by the complaints we saw. We will continue to monitor the company. If we find breaches of the assurances we shall have no option but to move to formal court action under the relevant legislation.'

1. Under the Stop Now Orders (EC Directive) Regulations 2001, which have been repealed and replaced by the Enterprise Act 2002 (EA), the OFT could apply for a court order against traders who breached or were threatening to breach a number of consumer protection laws harming the collective interests of consumers covered by those laws.

2. The Unfair Terms in Consumer Contracts Regulations (UTCCRs) apply to standard contract terms used with consumers in contracts made after 1 July 1995. The Regulations say that a consumer is not bound by a standard term in a contract with a seller or supplier if that term is unfair. They also give the OFT and other Qualifying Bodies powers to stop the use of unfair standard terms, if necessary by obtaining a court order. Breaches of the UTCCRs can lead to court action under the Regulations themselves or under the EA.

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