Better legal protection for consumers
Following the introduction of new consumer protection legislation in May, there is now a duty on businesses not to trade unfairly.
The Consumer Protection Regulations aim to prevent 'rogue traders' from taking advantage of vulnerable consumers, by addressing issues ranging from aggressive sales tactics to bogus closing down sales.
Critically, they outlaw the use of misleading information which, although factually correct, may convince a consumer to make decisions that they would not have made otherwise. Affecting all business to consumer transactions in the UK, 31 specific practices are now banned outright including pyramid schemes, the use of fake credentials and phoney competitions.
In addition they clamp down on the use of aggressive sales techniques that rely on harassment, coercion or undue influence, meaning that the pushy door to door salesman who refuses to leave should be a thing of the past.
According to the Trading Standards Institute, who will be policing the new regulations, serious cases will be dealt with under criminal law, meaning a fine of up to £5,000 and/or a two-year prison term for cases heard in a Crown Court.
Trading Standards is currently investigating a fraudulent website that promised customers low-cost home appliances. Quoted in the Guardian, Trading Standards Senior Enforcement Officer Liam Mooney has described it as "rotten to the core", and is leading an investigation into the company under the Fraud Act 2006.
Not only did the business not deliver paid-for items, some consumers' credit cards were also charged amounts up to 10 times higher than expected. According to Mr Mooney, there are lessons here that every consumer can learn from.
"My advice is only to deal on the Internet with known and trusted names," he says. "Avoid firms you have never heard of - and use a credit card rather than a debit card if you can."
For more information on the new regulations go to http://www.oft.gov.uk/shared_oft/business_leaflets/530162/oft979.pdf
Call Anthony Heath on 0117 9290451 or email aheath@metcalfes.co.uk for advice.
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