Protection for Consumers
The New Consumer Protection Regulations mark a fundamental change to the consumer protection rules which will impose a duty on businesses not to trade unfairly.
The Office of Fair Trading and Trading Standards will enforce the new laws and maximum penalties of up to £5000 can be imposed on persons found guilty in a magistrates court or a fine of up to £5000 and/or two years in prison in cases heard in the Crown Court.
The Regulations include a ban of 31 types of unfair sales practices and will stop businesses from making misleading statements or omissions, conducting aggressive sales practices and not coercing or harassing customers.
It is intended that the Regulations will better protect consumers and the text of the Regulations certainly achieve this. However the Office of Fair Trading and Trading Standards may not have adequate resources to fully investigate all cases, and until such resourcing issues are addressed, the Regulations, whilst marking one of the biggest overhaul of consumer laws in forty years, may not still be protection enough for vulnerable consumers.
Useful Links
- FSA Report
- Fairness of terms in consumer contracts: a visible factor in firms treating their customers fairly
- Unfair Contract Terms Guidance
- The Office of Fair Trading has released guidance notes both for general advice and for specific trades
- FSA Regulatory Guide
- The FSA's own regulatory guide to unfair contract terms