The Trade Descriptions Act was originally created in order to protect consumers when purchasing goods or services from traders. The traders concerned must comply with regulations that are stipulated within the Trade Descriptions Act. This Act was initially created in 1968 by the Houses of Parliament and all traders are required to comply. This legislation is managed on a local level and consumers are within their rights to report any company that they feel has broken the regulations. On a local level the Act is monitored and enforced by the local Trading Standards unit, which is usually part of the local authority. Traders that are found to have broken the regulations are likely to face prosecution. Different punishments are enforced within Magistrates and Crown Courts.
In 2010 the Trade Descriptions Act was updated to include modern equivalents to terms implemented into the Act in 1968.