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