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New rules for consumer protection | New rules for consumer protection |
(about 1 hour later) | |
A new law aimed at protecting consumers against rogue traders has come into force in the UK. | A new law aimed at protecting consumers against rogue traders has come into force in the UK. |
For the first time in UK law there will be a duty on all businesses not to trade unfairly. | For the first time in UK law there will be a duty on all businesses not to trade unfairly. |
The law aims to tackle everything from aggressive sales tactics by rogue builders to bogus closing-down sales. | The law aims to tackle everything from aggressive sales tactics by rogue builders to bogus closing-down sales. |
Fortune-tellers, astrologers and mediums are among those affected by the rules, which require them to say their services are for "entertainment only". | Fortune-tellers, astrologers and mediums are among those affected by the rules, which require them to say their services are for "entertainment only". |
Some 31 specific practices will now be banned, and the law's wider duty not to trade unfairly is intended to avoid the need for a new law to cover every new scam. | Some 31 specific practices will now be banned, and the law's wider duty not to trade unfairly is intended to avoid the need for a new law to cover every new scam. |
However, unlike in Ireland, the rules do not extend so far as allowing disgruntled customers to claim compensation when businesses treat them unfairly. | However, unlike in Ireland, the rules do not extend so far as allowing disgruntled customers to claim compensation when businesses treat them unfairly. |
Carl Belgrove from the National Consumer Council welcomes the changes | Carl Belgrove from the National Consumer Council welcomes the changes |
And concerns have been raised that there are not enough trading standards officers to police the new scheme effectively. | And concerns have been raised that there are not enough trading standards officers to police the new scheme effectively. |
Carl Belgrove, of the National Consumer Council, said the new rules were a welcome change in the law after 20 years of campaigning by support groups. | Carl Belgrove, of the National Consumer Council, said the new rules were a welcome change in the law after 20 years of campaigning by support groups. |
"These new laws represent a big boost to consumer protection, particularly for vulnerable people who are targeted by rogue traders," he said. | "These new laws represent a big boost to consumer protection, particularly for vulnerable people who are targeted by rogue traders," he said. |
Harry Hodder, a retired factory worker from Nottingham, is one such person. He spent £250 replying to bogus prize draw letters promising him millions. | Harry Hodder, a retired factory worker from Nottingham, is one such person. He spent £250 replying to bogus prize draw letters promising him millions. |
"One promised £75,000 was owed to me and I thought I could get my own bungalow, but now I know where this junk mail goes ...in the shredder," he said. | "One promised £75,000 was owed to me and I thought I could get my own bungalow, but now I know where this junk mail goes ...in the shredder," he said. |
"What a way to blackmail people into parting with their hard-earned money." | "What a way to blackmail people into parting with their hard-earned money." |
The new legislation outlaws information which, even if it is factually correct, deceives the average consumer into making a transaction he or she would not have taken otherwise. | The new legislation outlaws information which, even if it is factually correct, deceives the average consumer into making a transaction he or she would not have taken otherwise. |
Wide-ranging law | Wide-ranging law |
The Consumer Protection Regulations, which implement the EU directive on unfair commercial practices, mark the biggest shake-up in consumer law for 40 years. | The Consumer Protection Regulations, which implement the EU directive on unfair commercial practices, mark the biggest shake-up in consumer law for 40 years. |
This brings in a new concept of fairness, a brave new world for businesses dealing with consumers and advertising Lawyer Philip Carnell Will fake business blogs crash and burn? | This brings in a new concept of fairness, a brave new world for businesses dealing with consumers and advertising Lawyer Philip Carnell Will fake business blogs crash and burn? |
As well as a duty for companies not to trade unfairly and to avoid misleading statements or omissions, there is also a duty on businesses not to conduct aggressive sales practices, such as harassment, coercion and undue influence. | As well as a duty for companies not to trade unfairly and to avoid misleading statements or omissions, there is also a duty on businesses not to conduct aggressive sales practices, such as harassment, coercion and undue influence. |
This would tackle cases such as the pushy sales tactics Vivien Herbert said she had to endure. | This would tackle cases such as the pushy sales tactics Vivien Herbert said she had to endure. |
Ms Herbert said a solar panel salesman got very annoyed and called her a timewaster when she pointed out that she was not going to sign up for a system costing thousands of pounds during his first visit. | Ms Herbert said a solar panel salesman got very annoyed and called her a timewaster when she pointed out that she was not going to sign up for a system costing thousands of pounds during his first visit. |
But the wide-ranging nature of the regulations mean that they will also cover issues such as fake testimonials by "customers" giving favourable reviews of products, holidays or shows. | But the wide-ranging nature of the regulations mean that they will also cover issues such as fake testimonials by "customers" giving favourable reviews of products, holidays or shows. |
"This brings in a new concept of fairness, a brave new world for businesses dealing with consumers and advertising," said lawyer Philip Carnell of CMS Cameron McKenna. | "This brings in a new concept of fairness, a brave new world for businesses dealing with consumers and advertising," said lawyer Philip Carnell of CMS Cameron McKenna. |
"If marketing companies are going to try and be sneaky, that will now be a strictly liable criminal offence." | "If marketing companies are going to try and be sneaky, that will now be a strictly liable criminal offence." |
Brought to justice | Brought to justice |
Some of the 31 specific unfair sales tactics used by companies that are covered in the legislation overlap existing rules. | Some of the 31 specific unfair sales tactics used by companies that are covered in the legislation overlap existing rules. |
They also include advertising products knowing there is insufficient stock to meet demand, falsely claiming that customers would get a better deal if they signed up immediately, and directly targeting children to say they would be disadvantaged without a certain product. | They also include advertising products knowing there is insufficient stock to meet demand, falsely claiming that customers would get a better deal if they signed up immediately, and directly targeting children to say they would be disadvantaged without a certain product. |
Trading standards officers will be policing the new regulations. They could concentrate on the most prevalent complaints such as second-hand car sales and property repairs. | Trading standards officers will be policing the new regulations. They could concentrate on the most prevalent complaints such as second-hand car sales and property repairs. |
David Sanders, lead officer for civil law at the Trading Standards Institute, said that the more serious cases were likely to be dealt with under criminal law. | David Sanders, lead officer for civil law at the Trading Standards Institute, said that the more serious cases were likely to be dealt with under criminal law. |
This would mean maximum penalties of up to £5,000 for anyone found guilty in a magistrates' court, or a fine of up to £5,000 and/or two years in prison in cases heard in a Crown Court. | This would mean maximum penalties of up to £5,000 for anyone found guilty in a magistrates' court, or a fine of up to £5,000 and/or two years in prison in cases heard in a Crown Court. |
But Mr Sanders had a word of caution for consumers expecting all con-artists to face justice. | But Mr Sanders had a word of caution for consumers expecting all con-artists to face justice. |
"We are a limited band of people and we are only going to investigate the most serious cases," he said. | "We are a limited band of people and we are only going to investigate the most serious cases," he said. |
And Mr Sanders added that, especially in the smallest local authorities, there were not enough trading standards officers and they were not well enough resourced to conduct in-depth investigations into every potential breach of the rules. | And Mr Sanders added that, especially in the smallest local authorities, there were not enough trading standards officers and they were not well enough resourced to conduct in-depth investigations into every potential breach of the rules. |
Have you been the victim of a rogue trader? Send us your comments using the form below. | Have you been the victim of a rogue trader? Send us your comments using the form below. |