Monday, April 16, 2012
BIS Response to Consumer Protection Consultation
New proposals to make the Citizens Advice service a champion for
consumer information across a range of sectors and a new National
Trading Standards Board were announced by the Department for
Business, Innovation and Skills.
The Department for Business, Innovation and Skills has announced
further details of its plans for consumer protection. In it's
response to the consultation on institutional reform, the
Business Department has announced:
- Citizens Advice and Citizens Advice Scotland taking on
responsibilities from the Office for Fair Trading (OFT) and
Consumer Focus (as announced previously)
- A new advice line succeeding Consumer Direct (launched by the
Citizens Advice service on 2 April)
- Citizens Advice responsible for representing consumers'
interests in unregulated sectors (replacing Consumer Focus)
- A new National Trading Standards Board (NTSB)
The new National Trading Standards Board "will bring together
representatives of Trading Standards from England and Wales to
prioritise, fund and coordinate national and regional enforcement
cases. The NTSB will be responsible for gathering important
intelligence from around the country to combat rogue traders, and
tackle priorities such as internet scams, illegal money lending and
other enforcement issues that go beyond local authority
boundaries."
Consumers need to know who to go to when they have a problem
which is why Citizens Advice and Citizens Advice Scotland will take
on responsibilities and resources from the Office for Fair Trading
(OFT) and Consumer Focus. The process has already started, and a
new advice line succeeding Consumer Direct was launched by the
Citizens Advice service on 2 April.
The Citizens Advice service will also take on responsibility
from Consumer Focus for representing consumers' interests in
unregulated sectors. This will leave a new, technical Regulated
Industries Unit working with the energy and postal services sectors
and their regulators, replacing Consumer Focus.
Trading Standards will continue to play a critical role in
protecting consumers and businesses, which is why Government is
providing increased funding of £10.5m for England, Wales and
Scotland to build on local expertise and strengthen mechanisms for
cross-boundary working - making it easier to catch unscrupulous
traders.
As part of the reforms, a new National Trading Standards Board
(NTSB) will bring together representatives of Trading Standards
from England and Wales to prioritise, fund and coordinate national
and regional enforcement cases.
The Convention of Scottish Local Authorities (COSLA) has also
set up a task group to look at how best to deliver the landscape
changes in Scotland in both the short- and long- term.
The NTSB will be responsible for gathering important
intelligence from around the country to combat rogue traders, and
tackle priorities such as internet scams, illegal money lending and
other enforcement issues that go beyond local authority
boundaries.
Consumer Affairs Minister, Norman Lamb said:
"For too long people have been faced with an array of different
bodies for advice and support, but its not always clear who to turn
to first. The Citizens Advice service will become the
publicly-funded voice of consumers, championing their needs and
empowering them to make the right choices for themselves.
"There will also be clearer responsibilities and better
coordination between enforcers and consumer bodies. A new National
Trading Standards Board is exactly what we need to combat priority
areas such as loan sharks and internet scams.
"All of the reforms will ensure that we have the right system of
help, advice and protection for consumers."
David Collinson, interim Chair of the NTSB said:
"This is a real opportunity for Trading Standards to improve the
co-ordination and delivery of national consumer protection,
complementing the great work done by local authority trading
standards teams. The Government's decision is transformational,
enabling a truly joined up approach to tackling rogues and scammers
that operate across borders.
"In this first year we will build upon the excellent
collaboration that exists with our existing specialists teams such
as illegal money lending and regional scam/fraud teams, as well as
introduce new national capability on e-crime."
Gillian Guy, Chief Executive of Citizens Advice said:
"This is good news for consumers. With consumer advice, advocacy
and education all under one Citizens Advice service roof, consumers
will get a service they know and trust. One that helps them resolve
their problem, learn how to avoid similar issues, and get involved
in making sure the same thing doesn't happen to other people.
"Citizens Advice has a strong history of advising consumers and
championing their problems at a national and local level. We're
pleased that this decision will now allow us to do more to help
consumers in this way. We will work closely with Consumer Focus and
the Government to ensure a smooth transition for the benefit of
consumers."
The competition authorities will also continue to play a key
role in empowering and protecting UK consumers, following changes
announced to the competition regime in March.
The new Competition and Markets Authority (CMA) will be
responsible for promoting effective competition in markets across
the UK economy for the benefit of consumers and allow more
effective co-ordination with Trading Standards.
The reforms will also improve collaboration and intelligence
sharing between key organisations so that they work together for
the benefit of consumers. Members from the NTSB, CMA, the Regulated
Industries Unit and the Citizens Advice service will share
intelligence and work together on enforcement, information and
education.
The partnership will report regularly to the Minister for
Consumer Affairs on how the system as a whole is delivering
benefits for consumers.
Above all the proposals will help streamline the consumer
landscape and ensure a powerful consumer voice to business,
government and regulators.