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Consumer law to be simplified

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/091) issued by The Government News Network on 8 May 2008

The Government is planning fundamental changes to UK consumer law, to benefit consumers, reduce burdens for business and help enforcers.

The proposals were set out today in a major speech on consumer protection by UK Business Secretary John Hutton.

John Hutton said:

"Developed over decades and comprising more than 100 different pieces of legislation, the UK's current system offers high standards of protection for consumers.

"But its complexity makes it hard to understand and costs business an estimated £1.25 billion every year.

“For example, we currently have specific rules for filling up coal bunkers and selling bird seed, imitation baby dummies and clothes with hood cords.

"It is clear that we must act to streamline these myriad rules to help consumers know and exercise their rights, cut red tape and target enforcement to weed out rogue traders."

John Hutton now wants business and consumer groups to come forward with evidence that could inform the root and branch review of consumer law. The Government is seeking feedback on a number of ideas and questions including:

* Simplifying the law by replacing the 100-plus consumer laws with more flexible general rules to help reduce the burden on business

* Are there other significant costs for business which could be reduced?

* How to help consumers better understand their rights?

* Bringing together a small number of core consumer rights into a single Act of Parliament

* How to encourage swift and effective dispute resolution between business and consumers?

* Whether changes might be required to keep pace with technological developments like the internet?

* What changes would most help enforcement bodies target their resources on rogue traders or those that deliberately flout the law, and ensure that honest businesses do not carry unnecessary costs

To help support the review the Department for Business, Enterprise and Regulatory Reform has also commissioned IPSOS MORI to produce a unique Consumer Survey. The survey will look in depth at the perceptions of consumers across a range of different markets - focusing on confidence, transparency, complaints and vulnerable consumers.

John Hutton added:

"This survey, the first of its kind in the UK, will shine a light on unfair or anti-competitive behaviour and root out problem sectors or industries.

"It will help consumers to make informed choices driving up standards and celebrating success. Sectors that are working well and treating their customers with respect deserve recognition but those who are not should be taken to task."

Notes for Editors

1. John Hutton was speaking at `Making the EU Work for Consumers' a consumer conference hosted by the Department for Business, Enterprise and Regulatory Reform and the National Consumer Council

2. The deadline for people to provide their views on the questions and ideas posed by the Consumer Law Review is 31st July

3. The review is particularly timely because the European Commission is also reviewing eight of its Directives that impact on consumer legislation

4. Most consumer law is enforced by Trading Standards, while the Office of Fair Trading also has an enforcement role

5. This is part of the Government's overall approach to promote better regulation, regulating only where necessary, doing so in a proportionate and targeted way, and reducing bureaucracy wherever possible

6. The Better Regulation Executive is taking forward the Government's better regulation agenda.
http://bre.berr.gov.uk/regulation/

7. Examples of how individuals and businesses are benefiting from changes to regulation can be found on http://www.betterregulation.gov.uk. The site also invites suggestions for what else can be done to reduce red tape

8. The Department for Business Enterprise and Regulatory Reform helps UK business succeed in an increasingly competitive world. It promotes business growth and a strong enterprise economy, leads the better regulation agenda and champions free and fair markets. It is the shareholder in a number of Government-owned assets and it works to secure, clean and competitively priced energy supplies