This law empowers the judiciary to punish companies or individuals who make false claims about the products or services that they sell.

Applying a false trade description to goods is a strict liability offence: provided it is shown that the description was applied and was false, the accused has to prove certain defences in order to escape conviction.

False descriptions as to services require the more normal proof of mens rea (guilty intent).

The act was in conflict with the EU Unfair Commercial Practices Directive, which has been adopted in the UK and was implemented from April 2008.

Although technically the act itself remains in force, most of its specific provisions were repealed and superseded by the Consumer Protection from Unfair Trading Regulations 2008 which came into force 26 May 2008, missing the EU deadline for implementation by 12 June 2007.