As the owner of a clothes shop, you need to be aware of the legal issues that can arise. One issue is copyright infringement. If you sell clothes that bear a copyrighted design, you could be sued for infringement. Another issue is trademark infringement. If you sell clothes that bear a trademarked logo or design, you could be sued for infringement.
Additionally, you need to be aware of the laws governing consumer protection. This includes ensuring that your clothes are safe and fit for purpose. Finally, you should also be aware of the laws governing fair trading. This includes ensuring that you do not misrepresent the prices of your clothes or engage in other unfair practices. By being aware of these legal issues, you can help to protect your business from potential legal problems
This article will walk you through all the legislation surrounding clothing stores. If you are a clothes retail business owner, this information will be highly relevant to you.
What licences does a clothes shop need?
You may need other licences, depending on how the business operates, even though there are no licensing requirements specific to a clothing shop business that retail clothing and accessories.
Playing music in the shop
Playing background music in the shop requires a Music Licence from PPL PRS Ltd. Playing music videos requires an additional PPL licence.
Selling second-hand clothes
In addition to or instead of new clothes, you might consider selling second-hand clothes. A permit or license is required to operate as a second-hand dealer in Scotland. Second-hand goods cannot be dealt with unless they are incidental to the main activity of the business. Local authorities in other UK regions license or register businesses that deal in second-hand goods as their main or primary business (with certain exemptions). Consult your local authority trading standards department if you are unsure whether second-hand dealer licensing applies to your business.
Trading hours
Trading hours for retailers and small shops in England and Wales can open any day or hour. There are no trading hours restrictions in Scotland. A small shop is one that measures up to and including 280 square metres.
Retailing
Retail outlets are governed by a variety of laws which protect the interests of consumers. The retail price of goods must be clearly displayed, and goods must not be misrepresented. Your responsibility will be to ensure that all goods and services are of satisfactory quality and fit for their intended purpose. Labels must indicate the content of fibres on textiles.
On the Trading Standards Business Companion website, you can find more information about consumer protection, fair trading legislation, and textile labelling.
Trading online
There are specific laws that apply to businesses that sell products online, including eBay. You are required to provide certain information on your website, as well as about distance selling and email privacy. On the which website, you can find detailed information about your legal obligations to consumers, as well as requirements for selling online.
Carrier bag charge
SMEs (with fewer than 250 full-time equivalent employees) in England are exempt from the 5 pence charge. On the gov.uk website, you can find detailed guidance.
If retailers provide customers with a single-use carrier bag, they must charge them at least 5 pence. Plastic, paper, and plant-based starch bags are all single-use bags. Websites such as Gov.Wales and Zero Waste Scotland provide detailed guidance.
Any bag with a retail price less than 20 pence (including any bag that would otherwise be free) must be subject to a 5 pence levy in Northern Ireland.
Health & Safety, fire
Legislation regarding workplace health and safety and fire safety must be followed.
Employment legislation
Employment laws must be followed by anyone who employs staff. Among the most important areas of employment legislation are recruitment, employment contracts, wages, working hours, holidays, employment policies, sick leave, maternity leave, paternity leave, discrimination, discipline, grievances, dismissals, and redundancies. Workers in any shop that opens on a normal Sunday may have special employment rights.
Insurance for a clothes shop
Insurers or insurance brokers can explain the exact nature of your business, and what coverage you must have by law, as well as what coverage you should consider. The following might be included:
- Employer’s liability
- Public liability
- Product liability
- Premises, premises contents and stock
- Goods in transit (for example on the way back from a supplier)
- Cash
- Business interruption
- Motor insurance (for delivery vehicles)
You may be able to save money and get the level of cover you need if you join some trade associations and buying groups.
Read more: Clothing store sector trends
Conclusion
Clothing shops need to be aware of a number of legal issues they may come across, such as licensing, retailing, and trading online. Owners are also reminded of their legal duty toward employees and holding the correct insurance, both public and employers. Consumers are protected by the Consumer Rights Act, where they have the right to a return or refund if something you buy is faulty or unfit for purpose. Clothing shops need to understand the importance of this act as not to have and future legal issues.
Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.