UK
 
Categories

Business Planning

Sales & Marketing

Office Management

Human Resources

Finance & Investment

eCommerce

Legal & Taxation

Insurance

 
 



 
 
Business Planning
 
Trade description
A trade description involves the supply of information regarding products and services that is/are traded in the course of business. The law requires all information provided, relevant to the nature of business being carried and the products and services relevant should be clearly mentioned and made public is accurate and not misleading.

The Trade Descriptions Act 1968 governs the description of all products, services and businesses. The rules require the communication of such information to be verbal or written. A written can be in the form of an advertisement, brochure, invoice or an order form. Advertisements may contain pictures, images and/or graphics for appropriate pictorial representation of the product or service.

Should a trade description be supplied incorrectly there are serious penalties. The Act specifies that it is an offence where

  • false or misleading description has been provided in verbal or written form or by action performed prior to the supply of products and/or services;

  • there is an offer for sale for goods for which false or misleading information is provided - an exhibition of goods for supply in public or being in possession of such goods for the purpose of supplying it is considered to be an offer for sale and therefore falls under the ambit of the Act.

The Trade Description Act considers the supply of the following information for the purposes of trade description.

  • the dimension, guage and quantity;

  • the work done on the product to place in a marketable position;

  • the composition or ingredients of the goods;

  • the usability or the manner in which it can be best used;

  • other information not disclosed under previously mentioned points;

  • test results, if required by the nature of the product for supply;

  • the approval or certification of authorised person(s), where required;

  • place or date of manufacture;

  • the name of the person(s) who have produced the goods;

  • product history, including ownership title and usage.

Provided that a trader had committed an offence by mistake or relying on a piece of information provided which was not known to be false by the trader or the occurrence of an event beyond his/her control. Further, the trader must also be able to exhibit that all necessary precaution was taken to ensure that there was no offence committed on his/her own part.

Where information is reliable but has already been tampered with before providing it, the trader can disclaim liability from a trade description offence. The trader should provide a disclaimer for any information or description which is the based on available information and that the trader is not liable for any damages or loss which may be caused that is beyond the trader's control.