Claiming a Price Reduction for Faulty Goods

When goods turn out to be faulty, a refund is not always the only or most appropriate remedy. In many cases, consumers may prefer to keep the item and seek a price reduction instead. This is a recognised legal remedy under the Consumer Rights Act 2015, forming part of a structured system designed to resolve disputes fairly.

This guide explains when a price reduction can be claimed, how it is calculated, and what steps can be taken if a retailer refuses to comply. It is intended to provide clear, accurate guidance for both general readers and those with legal knowledge.

What Is a Price Reduction in Law?

A price reduction is a partial refund that reflects the reduced value of goods due to a fault. Rather than returning the item, the consumer keeps it and receives compensation for the defect.

This remedy applies where goods:

• Are not of satisfactory quality
• Are not fit for purpose
• Do not match their description

If these standards are not met, the goods breach the contract, and statutory remedies become available.

Where Does the Right Come From?

The right to a price reduction is established under the Consumer Rights Act 2015, which introduced a tiered system of remedies for faulty goods.

This system operates as follows:

1. Short-term right to reject (within 30 days)
2. Right to repair or replacement
3. Final remedies: price reduction or rejection and refund

A price reduction typically arises at the final stage, when earlier remedies have failed or are unsuitable.

When Can You Claim a Price Reduction?

1. After a Failed Repair or Replacement

The most common situation is where:

• The retailer attempts a repair or replacement, and
• The issue is not resolved

In these circumstances, the consumer can:

• Reject the goods for a refund, or
• Keep them and claim a price reduction

2. When Repair or Replacement Is Impossible

A price reduction may also apply where:

• The goods cannot be repaired (e.g. structural defect)
• A replacement is unavailable (e.g. discontinued product)

In such cases, the law allows the consumer to move directly to a price reduction without waiting for further attempts.

3. When Repair or Replacement Would Cause Significant Inconvenience

If a repair or replacement would:

• Take an unreasonable amount of time, or
• Cause significant inconvenience

You may be entitled to request a price reduction instead.

How Much Should the Price Be Reduced?

Legal Principle: Reflecting the Loss in Value

The reduction must reflect the difference between:

• The value of the goods as supplied, and
• The value they would have had if they were not faulty

This is a factual assessment and depends on:

• The severity of the fault
• The impact on usability
• The expected lifespan of the goods

Full vs Partial Reduction

• In some cases, the reduction may be up to 100% (effectively a full refund while keeping the goods)
• In others, it may be a partial refund, reflecting minor defects

The law does not prescribe a fixed formula, but requires fairness and proportionality.

The First Six Months: Presumption of Fault

Within the first six months after purchase:

• Any fault is presumed to have existed at the time of delivery
• The retailer must prove otherwise to avoid liability

This makes it easier for consumers to claim a price reduction without needing expert evidence.

After six months, the burden shifts to the consumer.

Time Limits for Claims

• Price reduction rights arise after the initial 30-day rejection period
• Consumers have up to six years to bring a claim for breach of contract in England and Wales
• However, delays may weaken the evidence and reduce the value of any claim

Who Is Responsible for the Price Reduction?

The retailer is legally responsible for providing the remedy.

This means:

• Claims must be directed to the seller
• Retailers cannot require consumers to deal with manufacturers

This applies regardless of any warranty or guarantee.

Practical Steps to Claim a Price Reduction

Step 1: Identify the Fault and Its Impact

• Document the defect clearly
• Consider how it affects the value or use of the product

Step 2: Gather Evidence

• Proof of purchase
• Photos or videos of the fault
• Any expert reports (if applicable)

Step 3: Contact the Retailer

Explain:

• The nature of the fault
• That previous remedies have failed (if applicable)
• That you are requesting a price reduction under the Consumer Rights Act 2015

Be clear about the amount you consider reasonable.

Step 4: Negotiate if Necessary

Retailers may:

• Offer a partial refund
• Dispute the amount

Negotiation is often required to reach a fair outcome.

Step 5: Escalate the Dispute

If the retailer refuses:

• Use Alternative Dispute Resolution (ADR)
• Consider issuing a claim in the County Court (small claims track)

A court may assess the appropriate reduction based on evidence.

Examples of Price Reduction in Practice

Example 1: Minor Defect

A new sofa arrives with a small cosmetic flaw:

• The consumer keeps the sofa
• A partial refund reflects reduced value

Example 2: Significant Fault

A washing machine works but leaks occasionally:

• Repair fails
• Consumer keeps the machine
• A substantial price reduction is agreed

Example 3: Major Fault

A product is largely unusable but still retained:

• The price reduction may approach 100%

Common Misunderstandings

“You can only get a refund”

Incorrect. A price reduction is a separate legal remedy.

“The retailer decides the amount”

Not entirely. The amount must be reasonable and can be challenged.

“You must accept endless repairs”

Incorrect. After one failed attempt, you can move to final remedies.

Risks and Practical Considerations

• Valuing the reduction can be subjective and disputed
• Lack of evidence may weaken your claim
• Delays may reduce the amount recoverable
• Minor faults may only justify small reductions

Common Questions from our Readers

Can I choose a price reduction instead of a refund?

Yes, particularly after repair or replacement fails.

How is the amount calculated?

It reflects the difference in value caused by the fault.

What if the retailer refuses?

You can escalate through ADR or the courts.

Final Thoughts

Claiming a price reduction for faulty goods is an important remedy under the Consumer Rights Act 2015. It allows consumers to retain goods while receiving fair compensation for defects.

This right usually arises after repair or replacement has failed or is impractical. The amount of reduction must reflect the loss in value and be proportionate to the fault.

Consumers who document faults, communicate clearly, and understand the legal framework are better positioned to secure a fair outcome.