BSI Better Reg Slides BERR

8/8/2019 BSI Better Reg Slides BERR

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Service Standards for

Consumers The LegislativeFramework

Graham Branton - BERR


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UNFAIR COMMERCIAL PRACTICES DIRECTIVEAND THECONSUMER PROTECTIONFROM UNFAIR TRADING REGULATIONS

B

etter Regulation in a consumercontext Simpler but wider law principles-based

Fewer prescriptive and specific obligations

More self regulation and ADR focus on

industry best practice

Ensure systems for complaint handling more

analysis of consumer detriment

More predictable enforcement based on

consumer detriment information


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Example 1 - CPRs Repeals detailed provisions in 23 laws

Introduces general principles

Removes specific obligations e.g.:

Prescriptive rules about how information has to be given (eg in writing)and, in certain cases where it must be displayed, are being abolished.

Businesses are no longer obliged to follow the guidance in the newPricing Practices Guide provided their price indications are notmisleading.

Certain advertisements for special offers will no longer have to give the

end date of the offer. Hotels will no longer be required to display room prices in a prominent

position in the reception area

Restaurants will no longer have to comply with very detailed rules as tothe content of menus and where they must be displayed.


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CPRs (2) General prohibition on unfair commercial practices (a

general duty not to trade unfairly)

Prohibition on misleading practices (actions andomissions)

Prohibition of aggressive practices

Prohibition of practices contrary to the requirements of

professional diligence There must be consumer detriment - except for 31

banned practices in Annex (e.g. claiming to be signatoryto Code of Conduct when not)


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GENERAL CLAUSE

MISLEADING PRACTICES AGGRESSIVE

PRACTICESACTIONS OMISSIONS

BLACK LIST

Conduct

& effect

Conduct

only


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CPRs (3) Concept of average versus vulnerable

consumer to determine consumer detriment

Enforcement through criminal and civil law by

Trading Standards and OFT also established

means

Impact of RES bill on enforcement

Law Commission looking at private enforcement

through claims for damages


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Example 2 - CEAR

Oblige energy and postal businesses to belong to a

redress scheme for complaint resolution

Enable energy and postal regulators to fix binding

complaint-handling standards

Require estate agents to sign up to an ombudsman

scheme c.f. consumer credit

New powers for OFT to investigate estate agent

activity if necessary


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WiderEuropean vision UCPD can be seen as one half of a future European Consumer Code

The missing half would be rules to define consumer rights this will beaddressed in the review of the consumer acquis

EU

law would be generalised and set a framework across all sectors.Itwould be largely future-proof.

Enforcement would be co-ordinated across Europe, independentlyadministered and focused on evolving consumer threats. It could beadjusted by sector to areas of greater consumer risk, informed by marketanalysis major role for self-regulation and industry standards.

No need for new legislation to respond to each new consumer detriment.

Large swathes of existing domestic and some European law could berepealed. Consumers would understand their rights much better and havemore confidence to shop across borders. Businesses would face similar lawand similar enforcement practice across entire EU.


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DomesticV

ision - Consumer LawReview Our vision is a simpler and more flexible regime, which is easier for

business and consumers to understand and to use and where:

the main elements of consumer law are set out clearly in a small

number of principles better and more targeted information enables consumers to make

effective choices, and doesnt impose unnecessary costs on themand on businesses

constructive resolution of disputes is achieved through appropriatetools and incentives making it easier for consumers to get redress

but, at the same time, reducing the burdens on business, and risk-based enforcement focuses attention on rogue traders wherever

they operate, not on routine inspections


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Consumer Law Review (2) Main focus on 3 elements

Simplification ofLaw e.g. supply of goods and

services, weights and measures, consumercredit

Empowerment of consumers and redress includes complaints mechanisms, ADRs and

consumer rights to compensation

Compliance and enforcement impact of RES,predictability and consistency, internet


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Implications for Standards Government preference for self regulation, is likely to

continue

Principle-based legislation links naturally to theelaboration of sector-specific codes of practice to apply

principles to sectoral specificities

Attempts to analyse consumer detriment will put pressure

on sectors with low satisfaction to develop consumer-friendly initiatives

CPRs will force enforcers to identify what constitutes

professional diligence

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