Chapter 3 of the Consumer Rights Act introduces a completely new set of rights and remedies for consumers purchasing digital content. The term ‘digital content’ covers a wide range of purchases. For example, any of the following in digital format would be classed as digital content: books, computer software, audiovisual content, mobile apps, computer games. Also covered are software programmes incorporated into goods, such as music on a CD, or built-in vehicle software. In contrast, digital content does not include an online shop selling goods or a mobile service contract.
Digital content previously fell into an uncertain area between goods or services. The rapid growth of this type of purchase persuaded legislators to come up with a tailored set of rules for sales of digital content, and specific provisions dealing with situations where a combination of digital content with goods or services is supplied.
As with goods and services, the Act gives consumers a set of statutory rights that cannot be excluded. The digital content must be:
- Of satisfactory quality
- Fit for any particular purpose made known to the trader
- As described
In addition, the pre-contract information provided by a trader under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 is to be treated as included as a term of the contract.
As with goods, the Act brings in a statutory implied term that the trader has the right to sell or transfer the digital content to the consumer.
Alongside the new rights Chapter 3 sets out the statutory remedies available to a consumer where there has been a breach of the consumer's statutory rights. At first, the consumer may request a repair or replacement, where possible. This must be done promptly and without inconveniencing the consumer, failing which the back-up remedy of a price reduction is available. The price reduction can be up to the full amount paid. Unlike a goods contract, there is no right to reject digital content. Although in a mixed supply of digital content and goods, such as a music CD, defects in the digital content will trigger the remedies available for goods.
An additional remedy is available for digital content which entitles the consumer to claim for damage caused to his own hardware or software by the digital content. This is available to a consumer even where the digital content is supplied for free.