Background to the Provisions of Services Regulations
The provisions of services regulations have been established as a result of the European Directive. Provisions came into force in the UK on 28th December 2009 and have potentially a far reaching effect on a wide range of businesses. One of the main aims of the regulations was to make the provision of services across the European Economic Area (EEA) easier and more transparent as well as ensuring that purchasers are furnished with the correct information relating to the supplier at the earliest possible opportunity or in any event before they have agreed formally to use the services.
Key Provisions in the Provisions of Services Regulation
At the centre of the regulations is the list of information that must be provided to the customer (whether they be a consumer or a business). Critically this information must be given prior to the customer becoming obliged in any way to make any payment. For example the information would have to be given before the service is performed or before any contract is signed.
Typically this will be problematic for the types of businesses that do not provide information such as contact details to their customers before they begin to undertake services. For example in the building trade where the first bit of written documentation is often the invoice. Customers are also not always aware of whom they are dealing with, particularly where there are multiple addresses or trading names being used.
The provisions also deal with the need to have available a written complaints procedure which a customer can ask to see at any point, again offering consistency and safeguards for those receiving services from others.
What is a Service under the Provisions of Services Regulations?
One of the initial questions that is raised under this provisions of services regulations is that of who exactly is considered to be a service provider and what exactly a service is? It is a common misconception that services are only provided by businesses to customers but in reality it can also cover a business to business situation and can potentially cover organisations that do not necessarily view themselves as being service organisations.
Organisations such as restaurants, accountants, beauticians are all clearly service providers whether they are servicing individuals or businesses and would fall within this category. Others are slightly less obvious and may only have a marginal service element for example whilst a retailer may be selling goods which are not considered a service any ongoing maintenance of these goods would result in it being deemed a service and therefore caught by these regulations.
For more information on:
- Information that must be made Available
- Related Issues with the Provisions of Services Regulations
- Ways of making information available
- Complaints handling obligation
- Action Points