I have a Far East test report going back years - am I covered?

There are 3 things to consider with reliance on test reports: Is the report prepared for your company? If not it cannot be relied upon. Was the correct test carried out to ensure that the product is safe to supply in the sales territory? If a product complies with the regulations, this is sometimes insufficient as the test house should have been asked to consider the safety of the product for sale to the intended user. English Courts will give very little weight to Far East test certificates. An up-to-date UK accredited test report is the appropriate indication of part of a quality control system.

I have been sent a letter requesting a formal interview with a Trading Standards Officer . What shall I do?

This is very common when Trading Standards are investigating products, either as a result of a test purchase or complaint from a member of the public.

The interview is taped under the same rules as a Police interview and can be particularly unnerving. Trading Standards can often use this interview to find out about other potential inadequacies in your quality control system. It is much safer to decline to attend the interview, but volunteer to reply to written questions instead. This gives you the chance to get all your facts one hundred per cent accurate and takes away the pressure of being put on the spot.

One of our products is unsafe and I need to do a product recall. How much will it cost me?

Time is the all important factor in a recall. It is essential to get your message out as quickly and as widespread as possible. At best, some companies decide on national newspaper adverts which can easily cost in excess of £50,000. Alternatively consider e-mail, mail shots, poster at point of sale and immediate recovery of unsold goods which must be quarantined.

In the case of the previous question, can I involve the competition who still continue to sell their products?

Whilst this is always very annoying, it is wrong to assume that their product is identical to yours. There may be minor modifications which will enable the product to be considered safe by an accredited test house.

Our home Trading Standards Authority has a different view to the Trading Standards Authority who has issued a summons against our company. What can I do?

The role of home authorities is currently changing with a new compliance code for regulators. This will bring a dramatic change in the enforcement regime, in that the home authority will be required to play a more proactive role in the decisions of importers and manufacturers. In future, companies who cooperate with the home authority may find that they have fulfilled all of the requirements necessary to rely on the defence that they have acted with all due diligence - one of the defences available if you are prosecuted.

I am selling my goods/services online. What minimum information must my website contain?

You must comply with the provisions of the Electronic Commerce (EC Directive) Regulations 2002 and the Consumer Protection (Distance Selling) Regulations 2000. Minimum information requirements that are relevant to selling goods/services to consumers include:

Name and address of the establishment including e-mail address which would make it possible to contact and communicate with the provider rapidly;

• Details of VAT number where applicable;
• Prices must be indicated clearly and unambiguously and in particular, whether they are inclusive of tax and delivery costs;
• Description of goods/services;
• Details of complaints procedures and after sales service;
• Details of the steps to follow to conclude the contract/sale so that the customer is aware of what the process will involve and the point at which they commit themselves;
• Information on how the customer can cancel the contract and confirmation that the customer has a right to cancel the contract within 7 days.

Please contact Fox Hayes for a detailed list of all the regulations.

How can I reduce my level of bad debts?

In this time of economic downturn it is important for businesses to have procedures in place to limit their level of bad debts and to ensure prompt payment of invoices for services provided or goods supplied.

The first step is to be certain that any company or individual that you enter into a contract with has the means to pay you. It is therefore important to carry out a credit history search on any new client and insist on payment of a pro-forma invoice when necessary. When a relationship has been established you may decide not to insist on payment up front.

To ensure prompt payment of invoices, your contract for goods and services must state when payment is to be made. This enables collection proceedings to be commenced should your customer default.

It is also important to include, within contracts for goods, a title retention clause enabling goods to be recovered from a debtor should payment not be received within the agreed payment terms. You must be able to track the specific consignment. Without this clause you may be left without the goods and without payment.

If however people continue to take your good nature for granted and delay in making payments to you then proactive legal debt collection can assist. The strongest approach to the issue is to issue a statutory demand.

Phillip Drazen, Managing Partner

Tel: 0113 209 8945

E mail: philipdrazen@foxhayes.co.uk