7:00 am, August 17, 2026
The Government has defended its heavily-criticised Consumer Rights Act amid growing unrest from used car dealers.
Retailers last week named the act as the one piece of legislation they most wanted to see changed in order to better support the motor trade.
Dealers pointed to the 30-day right to reject, distance selling rules and the lack of different rules for different ages of vehicle as major issues with the current legislation.
Several called for a US-style ‘lemon law’ to be introduced, which splits cover by mileage and is explicit in which parts are included, while another described the current regulations as ‘not fit for purpose’.
Car Dealer has since put these complaints to the Department for Business and Trade, which is responsible for the Consumer Rights Act.
While the Government department did not respond to Car Dealer’s request for an interview, it did send us a written statement.
It backed the current legislation, saying it ‘provides clear protections when things go wrong’ but said it continues to work with firms to hear ‘how regulations operate in practice’.
A Government spokesperson told Car Dealer: ‘Our consumer rights legislation helps people buy with confidence, while providing clear protections when things go wrong.
‘We are always working with business to hear how regulations operate in practice while also supporting them through our Small Business Plan.’
Why do car dealers hate the Consumer Rights Act?
Used car dealers have long argued that the Consumer Rights Act is too blunt an instrument for the second-hand car market, as it treats vehicles of vastly different ages and conditions in much the same way.
Culloden Cars boss Craig Walker said the act treats a 13-year-old car in the same way as a three-year-old vehicle, despite the products being ‘completely different’.
He said the introduction of a ‘lemon law’ would not mean fewer consumer rights, but would give dealers and buyers greater clarity from the outset.
EV Experts co-founder Estelle Miller also criticised the current rules, saying they needed to be made ‘more realistic’ for used cars.
She said dealers were being pressured by customers seeking to reject vehicles over manufacturer recalls or faults, sometimes years after purchase, while also describing the 30-day distance selling return period as ‘ridiculous’.
Miller argued the rules may work for smaller, less complex goods but are unfair when applied to used cars, which contain hundreds of components and can be operated or maintained poorly.
Elsewhere, Infinity Motors founder Sohib Ghafouri said it is ‘incredibly difficult’ to operate under the current rules and insisted the situation ‘cannot continue’.
The issue was discussed at length in the latest episode of the Car Dealer Podcast, which you can listen to below: