06/02/2025   Consumer law for care homes - Laura Ornsby, Solicitor at Wilkin Chapman

Complying with consumer law is an essential part of running a care home. The Competition and Markets Authority (CMA) released revised guidance in 2021 to help care homes understand and comply with their obligations under consumer law.

Failure to comply can lead to enforcement action by the CMA, Trading Standards, or other regulatory bodies. This could result in court proceedings, compensation claims from residents, and, in some cases, criminal prosecution. Unfair contract terms may also be deemed unenforceable, leaving providers exposed to financial and reputational risks.

Your obligations under consumer law

As a care provider, you must:

• Treat residents and their representatives fairly. You must not mislead them or otherwise act unfairly towards them – this means you must provide key information about the service upfront, so they can make informed decisions when choosing a care home.

• Ensure your contracts with the residents are fair. A term of a contract for care services may be unfair if it causes a significant imbalance between the rights and obligations of the care home and the resident. Given the vulnerability of many care home residents, care homes should be especially careful to ensure the terms of their contracts are fair. If the contract is deemed to be unfair, it will not be enforceable.  
• Perform your services with reasonable care and skill. If you don’t, you will be acting in breach of contract and residents may be able to seek compensation from you.  
• Have an effective complaints procedure. This should be easy to find, easy to use and fair.

What action should you take?

1.        Review your key information. Ensure all materials (website, brochures, verbal information) provide accurate and comprehensive details to enable the prospective resident to make an informed decision.

2.        Carefully consider whether you need to make changes to your contracts and business practices to make sure you are complying with the law (which may involve reviewing whether all your charges are fair).

3.        Train your staff. Customer-facing staff must understand the consumer law requirements and their duty to perform services with reasonable care and skill, since you will be responsible for their actions.

4.        Review your complaints procedure. Make it simple and fair for residents and their families to raise concerns.

Need expert guidance?

If you require legal advice on consumer law compliance, reviewing your contracts, or need to defend a breach of contract/consumer claim, please contact Laura Ornsby at Wilkin Chapman for further information on 01472 246693, email: [email protected] or visit Laura Ornsby | Dispute Resolution | Wilkin Chapman LLP