From Mike Bomford, Exeter 382173, May 09, 2008

Devon County Council's Trading Standards welcomes new powers to tackle rogue traders.

The Government is cracking down on the problem of unfair trading practices. If they are approved by Parliament, the Consumer Protection from Unfair Trading Regulations (CPRs) will come into force on 26 May. The CPRs will represent one of the biggest changes to consumer law in 40 years.

The CPRs will apply to all businesses that trade directly with consumers - from hoteliers and builders to retailers, estate agents and second hand motor traders.

They will ban 31 types of unfair sales practices outright including bogus 'closing down' sales and prize draw scams. They will also, for the first time:

• Create a 'catch-all' duty not to trade unfairly, closing loopholes that rogue traders have previously been able to exploit.
• Ban aggressive selling, including high pressure doorstep selling practices
• Require businesses to give consumers the information they need to make an informed choice when purchasing products

Councillor Brian Berman, Devon County Council's Executive Member for Communities said:

"We welcome the extra protection that these Regulations will provide for consumers. Honest businesses will also benefit. They have always understood the value of giving good service and treating customers fairly. These Regulations are designed to provide safeguards for them by deterring rogues who try to compete unfairly."

The Regulations are designed to simplify the law, replacing 23 existing pieces of legislation including the Trade Descriptions Act and controls on misleading prices.

They create a modern framework of law which applies in all EU states, extending protection for consumers and establishing common regulatory standards for UK businesses trading across the whole of Europe.

In a recent government press release^[1], John Wright, Chairman of the Federation of Small Businesses, said:

"I welcome this new law. Legitimate businesses should no longer have to face unfair competition from firms who use underhand tactics to get ahead. These regulations will create a level playing field for all, allowing businesses to thrive based on merit and not on who is best at duping or pressuring consumers."

The new Regulations will be enforced locally by Trading Standards Officers.

Peter Greene, Fair Trading Manager for Devon County Council's Trading Standards Service said:

"Honest Devon businesses have nothing to fear from the change in the law.

"Our aim initially will be to provide advice and assistance so they understand the implications of the new provisions and can more easily comply.

"In addition, the County Council will be better placed to take action against rogue traders who persist in cheating and defrauding consumers.

"The Regulations will also support honest local businesses who are as fed up as we are with those who use unfair practices to gain an advantage and perpetrate crime."

For more information on how the new Consumer Protection from Unfair Trading Regulations will affect business, visit http://www.oft.gov.uk/advice_and_resources/small_businesses/competing/protection or http://www.businesslink.gov.uk/unfairtrading.

Advice and assistance on a range of legislation enforced by the Trading Standards Service can be found via the Devon County Council website at www.devon.gov.uk/tradingstandards or by phoning our business helpline on 01392 381381.

For clear, practical consumer advice on a range of consumer issues, members of the public can call our partners Consumer Direct on 08454 04 05 06 or visit their website at www.consumerdirect.gov.uk

NOTE TO EDITORS

For further information contact Peter Greene, Fair Trading Manager, Devon County Council Trading Standards service on 01392 382728 or 07890 540784 (mobile).

The Consumer Protection from Unfair Trading Regulations implement the Unfair Commercial Practices Directive which establishes consistency of trading across the EU, making it easer to market goods and services to an internal market of 460 million consumers.

The legislation will primarily affect businesses across the UK who trade directly with consumers or whose products are used by consumers and cover goods, services, obligations and contractual rights wherever trading takes place including on the high street, online, by phone or via TV.

New research released 18 April 2008 reveals that most small businesses believe their profits are affected by rivals using unfair sales practices.

A Department for Business, Enterprise and Regulatory Reform study^[2] found that:

• 53% of small business leaders think their profits are hit by rivals using unfair sales practices
• Of those who feel their profits are affected, one in 10 estimate rogues are costing them more than a fifth of their revenue and 38% believe they are costing them between 10-20%
• A fifth of small business leaders have worked in an organisation that they felt used such practices, with 12% actively encouraged or trained by a previous employer to deploy questionable tactics to make a sale

The Business Protection From Misleading Marketing Regulations 2008 are also due to come into force on 26th May 2008. Unlike CPRs, which only cover business to consumer transactions, the BPRs control misleading marketing in business to business situations. They are also enforced locally by Trading Standards Officers.

Devon Trading Standards Service is part of Devon County Council. Its aim is to protect consumers and maintain a fair trading environment in which local businesses can thrive. The Service offers free help to businesses on the full range of consumer legislation it enforces. Its work includes routine inspection of business premises, responding to complaints from the public and businesses and investigating breaches of consumer criminal legislation. Full details can be found on their web pages at: www.devon.gov.uk/tradingstandards

Case studies^[3]

1. False prize draw

Letters headed 'Official Payout Notification' told people they were guaranteed to win a prize. They had to ring a hotline to claim. People had to listen to the whole message to find out if they had won a prize. The call cost £6. People were instructed to write in with their claim. Thousands of people did all this, but it appeared none received a price.

An Authority brought a prosecution in this case under existing legislation, but it will be simpler, cheaper and quicker to take action under the CPRs.

2. Aggressive doorstep selling

A doorstep salesman scares elderly people into buying a burglar alarm system.

There is a variety of legislation in this area, but it is inadequate because, unlike the CPRs, it does not cover the inherent unfairness and aggressive nature of the sales technique. The CPRs will combat the pressure sales element of certain doorstep sales, which do not currently constitute a breach of the law.

3. Misleading actions

A trader cold calls consumers. To make them feel secure he falsely tells them that the products he is selling have been thoroughly tested and approved by a professional institution.

This practice is frequently used by rogue doorstep sellers. It will be a lot easier to take action against this and other misleading practices under the CPRs.

4. Misleading omissions

A consumer contacts a trader about digital television reception in his home. The trader visits and offers to supply him with a new arial without making it clear that his old arial was perfectly suitable to receive digital signals.

Not providing consumers with material information to allow them to make an informed choice is prohibited under the CPRs.

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