Not just for banks and big companies
Consumer law does not only affect banks, insurers or phone companies. It applies to any business, however small, as long as its customers are not only businesses and professionals. Under the law, a consumer is a person who buys or contracts for purposes outside their trade, business or profession.
The main rule is the consolidated text of the Ley General para la Defensa de los Consumidores y Usuarios (the Spanish Consumer Protection Act), approved by Real Decreto Legislativo 1/2007. In Andalucía it is supplemented by regional consumer legislation. And quite often problems arise because businesses draft their own documents or copy them from the internet or from another business.
What you must give your customer before they sign up
Before the customer commits, the law requires you to give them clear, understandable information on the essentials: who you are, the features of the product or service, the total price including taxes, the payment method, delivery times and guarantees. In some sectors, such as certain repairs, the customer is also entitled to a prior written quote.
In Andalucía, most businesses that serve consumers must keep official complaint forms (hojas de quejas y reclamaciones) available to the public and display a visible sign saying so. If you receive one, you must reply in writing and within the deadline. I help you with this in the customer complaints response service.
Online and off-premises sales: the right of withdrawal
If you sell online, by phone or away from your premises (for example, by signing a quote at the customer’s home), the consumer can withdraw from the contract within 14 calendar days, without giving reasons and without penalty. You must tell them about this right and give them a withdrawal form. If you do not, the period is extended by up to twelve more months.
The right is not absolute. The law provides for exceptions: made-to-measure or personalised products, perishable goods, sealed products that have been unsealed for hygiene reasons, services already fully provided with the customer’s express consent, or urgent repairs the customer asked for at their own home, among others. To rely on them, you must have explained them properly.
Unfair terms and fines
The law contains a list of unfair terms (cláusulas abusivas) that you cannot use with consumer customers. But the list is open: the courts are constantly extending it and making it more specific as they decide individual cases. Common examples are limiting your liability for your own failures, imposing disproportionate penalties if the customer cancels, or sending any dispute to a court far from the customer’s home.
An unfair term is void and treated as never written, even if the customer signed it. And simply having it in a contract, quote or any other document can lead to fines from the consumer authority large enough to put a small business in difficulty.
That is why it is essential for a lawyer who knows your business, your customers and the law to draft and review the documents you hand out. I offer drafting and follow-up of these documents as part of the general advice service or separately. If you also use templates with businesses and suppliers, see standard contract drafting and review.