Consumer Minister
Kevin Brennan today launched a public consultation on the role and
powers that will be given to a new champion of consumer rights,
the ‘Consumer Advocate’, who will be tasked with ensuring UK
consumers get a fairer deal in the future.
This is the latest of a series of announcements by the Government
acting on the side of and strengthening the rights of British
consumers. The Government announced plans to appoint a Consumer
Advocate earlier this year as part of the White Paper “A Better
Deal for Consumers: Delivering Real Help Now and Change for the
Future” – which set out a package of measures designed to get
consumers a better deal in the downturn and strengthen their
consumer rights.
Kevin Brennan said:
“The Consumer Advocate’s job will be to fight consumers’ corner
as a new national figurehead. The Advocate will support consumers,
take legal action on their behalf, help them to get compensation
and warn consumers about latest scams. This is especially
important during the downturn when people’s finances are hard pressed.
“We will advertise the role shortly and today we’re seeking the
public’s views on the role and powers that the advocate will have,
both in the short term and in the future.”
The consultation seeks views on a number of key issues:
· Enabling the Consumer Advocate to take collective legal
action on behalf of groups of individual consumers. This
would create a new mechanism through which consumers could get
redress and compensation. It is important as consumers are
understandably very reluctant to take court action themselves. The
consultation seeks views on the scope of the power and
circumstances in which it could be used. The Office of Fair
Trading estimated that consumers had suffered a detriment
amounting to £6.6bn in 2007 as a result of problems with goods or
services purchased.
· Giving the Consumer Advocate the power to pay back
compensation to UK consumers who have lost out to overseas
businesses. This would ensure that an appropriate body in
the UK has the power to receive, hold and distribute funds secured
by overseas enforcement agencies that rightly belong to UK
consumers. The OFT estimates that 140,000 people fall victim to
foreign lottery scams every year - costing the UK public an
estimated £260m a year.
· How the Consumer Advocate can improve the effectiveness of
consumer education and how
best to communicate with the most vulnerable consumers. A
large number of bodies are currently involved in consumer
education. The Government wants the Advocate to improve the
coordination of education and information campaigns and to
champion the needs of consumers.
The Government wants the first Consumer Advocate to also act as
Chair of Consumer Focus.
Larry Whitty, the current Chair, has overseen the successful
creation of Consumer Focus. He is due to retire next year and will
step down once a Consumer Advocate is in place. This is expected
to be in the Spring of 2010.
Notes to Editors
The creation of a Consumer Advocate was one of the actions
referred to in the Government’s recent Consumer White Paper “A
Better Deal for Consumers – Delivering Real Help Now and Change
for the Future.”
Department for Business, Innovation & Skills
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conditions for business success; promoting innovation, enterprise
and science; and giving everyone the skills and opportunities to
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