In the guide
This guidance is for England, Scotland & Wales
It is a criminal offence for a trader to engage in a commercial practice that is misleading with respect to goods and services. Therefore traders should carry out necessary checks to confirm the mileage. There are specific guidelines in relation to the use of any disclaimers.
This guide specifically deals with how the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) affect the motor trade with regard to odometer readings.
The CPRs are a wide-ranging piece of legislation that make it a criminal offence for a trader to engage in commercial practices that mislead in respect of goods and services. The misleading element could be in the form of an action (such as a statement or description) or in the omission of facts (such as failing to disclose information) about the goods or services. An action or omission may be seen as misleading if it affects or is likely to affect the consumer's decision to purchase (or make any other 'transactional decision', as it is known in the CPRs).
See 'Consumer protection from unfair trading' for more detailed information on the workings of the CPRs.
The mileage indicated by the odometer of a car is a description, and as such it will be regarded as an accurate indication of the distance travelled by the vehicle. Traders are expected to carry out checks to make sure the description is accurate, as it is likely to be information that would affect a consumer's decision whether or not to purchase the vehicle. If the odometer reading is incorrect you must not refer to it in any description - for example, on business paperwork, websites or advertisements. Displaying an incorrect odometer reading may be a misleading action. In addition, you must tell the consumer the true mileage if known, as failure to do this may be a 'misleading omission' (another CPRs term).
There are a number of practices that would undoubtedly constitute a misleading action or omission and are therefore prohibited, including:
Failing to disclose the odometer reading or the fact that an odometer unit was found to be faulty and has been replaced (either with a new or second-hand unit) may be a misleading omission.
The offences contained in the CPRs would apply even if a trader did not know that the indicated mileage was incorrect. However, the Regulations also provide for a defence to the criminal charges.
To use the defence the trader would have to show that they took all reasonable precautions and exercised all due diligence. This means a trader should be able to show that they have checks in place to verify the mileage and also show that these checks are carried out. Reasonable checks would include the following:
It is likely that any professionally diligent business would apply the above checks and maintain a record of the checks made. However, despite these checks it may still not be possible to verify the mileage recorded and you should state this to customers.
If the accuracy of the odometer reading is in doubt, you must make this clear to prospective customers. This is usually done by the use of disclaimers (which obscure the entire odometer reading). Although they are not a specific legal requirement it is always advisable to use disclaimers to avoid the potential false mileage description being read by consumers. Disclaimers are an attempt to remove or negate the description of the mileage given by the odometer to prevent the misleading action occurring. However, it isn't sufficient to disclaim all mileages without carrying out checks to confirm their accuracy. At best, it may be possible to indicate, using a disclaimer, that you have been unable to verify the mileage.
Failure to comply with the Consumer Protection from Unfair Trading Regulations 2008 is a criminal offence. The maximum penalty is a fine and two years' imprisonment.
In addition, a trader may risk losing their consumer credit authorisation. It is also possible for a trading standards service to take action under the Enterprise Act 2002 to obtain a court order to ban a trader from continuing an unfair commercial practice.
Last reviewed / updated: July 2017
This information is intended for guidance; only the courts can give an authoritative interpretation of the law.
The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to UK legislation can be found on each link's 'More Resources' tab; amendments to EU legislation are usually incorporated into the text.
© 2017 itsa Ltd.