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The Consumer Services Act (SFS 1985:716) applies when your business sells services to consumers. The act applies to work on and storing goods. Goods refers to all kinds of personal property, for example automobiles and electronics. The act also applies to work on real estate. It is not permitted for a company to mislead the consumer about when the act applies. To do so may contravene the Marketing Act (SFS 2008:486) and Consumer Contracts Act (SFS 1994:1512).
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Keep in mind
The Consumer Services Act applies when your company sells services to consumers. The act is binding.
The act applies to work on and storing moveable objects, and work on real estate.
If a service is deemed defective, the consumer has the right to withhold payment in whole or in part.
You are required to provide an itemised bill if the consumer asks for one.
The Consumer Services Act applies when your business sells services to consumers. The act is binding. It is not permitted for a company to mislead the consumer about when the act applies. Any such action may also contravene 10 § of the Marketing Act and 3 § of the Consumer Contracts Act.
The act applies to:
work performed on moveable objects, such as repairs to cars or televisions
work performed on real estate such as buildings and other installations on land and water, such as house repairs or painting and decorating
the storage of moveable objects, such as storing furniture or boats.
The act does not apply to:
the treatment of people or animals
manufacturing
goods sold with installation as a service
repairs your company undertake due to a defect to goods or services (1-2 § of the Consumer Services Act).
The Consumer Services Act contains consumer rights when a service is defective. A service is defective if:
it is not performed in a professional manner (9 § of the Consumer Services Act)
the service is not performed in accordance with applicable safety regulations (9 § of the Consumer Services Act)
the results are inconsistent with the agreement between the company and the consumer (9 § of the Consumer Services Act)
the service has been performed in contravention of a prohibition in the Product Safety Act (2004:451) (Section 9 of the Consumer Services Act)
you have failed to perform additional work that you are obliged to do in order to prevent serious injury. It is your responsibility to inform the consumer if the need for additional work arises while you are performing the service (9 § of the Consumer Services Act)
the results are not consistent with the undertakings in the company’s or supplier’s marketing (10 § of the Consumer Services Act).
Your company is not permitted to apply other criteria to assessing what constitutes a defective service. If you do so, you will not only contravene the Customer Services Act but possibly 3 § of the Consumer Contracts Act and 10 § of the Marketing Act.
The omission of important information about the distinguishing characteristics of the service may also constitute misleading marketing pursuant to 10 § of the Marketing Act.
If a service is deemed defective, the consumer has the right to make a complaint within three years of work being completed. If the service relates to groundworks, buildings or other fixed objects, the consumer retains the right to make a complaint when a defect is discovered within 10 years (17 § of the Consumer Services Act).
Your company cannot restrict the right of a consumer to make a complaint by, for example, inserting a clause in contractual terms and conditions. Any such terms and conditions contravene 3 § of the Consumer Contracts Act.
If a service is defective, the consumer has the right to withhold payment in whole or in part. You are also obliged to rectify the defect by: - repairing the defect - giving a discount corresponding to the nature and scope of the defect - allowing the consumer to cancel the order and refunding them.
Your company is not permitted to deny the consumer these rights. Nor are you permitted to force the consumer to choose alternative measures that are not provided for by law. Any such actions may contravene 3 § of the Consumer Contracts Act and 10 § of the Marketing Act.
Your company has delayed the performance of a service if work is not completed within the agreed time or, if no schedule has been agreed, within the time it normally takes to perform that type of service (24 § of the Consumer Services Act). The service is also delayed if you fail to observe the agreed dates for commencing or reaching a certain stage of the work (24 § of the Consumer Services Act).
The service is not considered delayed if the delay can be attributed to the consumer (24 § of the Consumer Services Act).
Your company is not permitted to apply other criteria to assessing what constitutes a delayed service. Any such action may contravene Section 3 § of the Consumer Contracts Act and 10 § of the Marketing Act).
The consumer retains the right to withhold payment if your company delays the performance of a service. The consumer may also demand that you perform the service, or cancel the order. The consumer can also demand damages for certain damage (25 § of the Consumer Services Act).
Your company is not permitted to deny the consumer these rights. Nor are you permitted to force the consumer to choose alternative measures that are not provided for by law. To do say may contravene 3 § of the Consumer Contracts Act and 10 § of the Marketing Act).
The consumer shall pay the price agreed in your contract. If no price is stated in the contract, the consumer shall pay a reasonable price given, among other things, the nature, scope and performance of the service, or the current price or price calculation method for corresponding services (36 § of the Consumer Services Act).
If you have given the consumer an estimate of the price, the final price may not exceed the estimate by more than 15 per cent unless some other price limit has been agreed or you are entitled to a specific surcharge (36 § of the Consumer Services Act).
You are required to provide an itemised bill for the service if the consumer asks for one (Section 40 of the Consumer Services Act). You must also supply clear price information. If this information is ambiguous, you risk breaching the Price Information Act (SFS 2004:347) and Marketing Act.
If the consumer fails to pay on time, you may postpone work until the consumer makes the payment. You also have the right to compensation for any losses incurred as a result.
If you have already started work, you are obliged to complete enough of the work to prevent the consumer suffering serious damage (45 § of the Consumer Services Act).
If you are working on an object handed over to you by the consumer, you have the right to retain it until the consumer makes payment (49 § and 50 § of the Consumer Services Act).
If the delay is significant to you, or there are strong reasons to believe that the consumer will not pay on time, you may cancel the contract regarding the remainder of the work (46 § and 47 § of the Consumer Services Act).
There is a risk that ambiguous contractual terms and conditions may contravene Section 3 of the Consumer Contracts Act).
If the consumer cancels an order for a service before it is completed, you are entitled to remuneration for that part of the work that has already been performed. You are also entitled to compensation for loss of income if the have not been able to take on any other jobs (42 § of the Consumer Services Act).
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