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 today by the Department for
Business, Innovation and Skills.
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
coordination 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.
Notes to editors:
1. You can read the full response at http://www.bis.gov.uk/assets/biscore/consumer-issues/docs/e/12-510-empowering-protecting-consumers-government-response.pdf
2. Consumers who need help should contact the Citizens Advice
consumer service at
www.adviceguide.org.uk or dial 08454 04 05 06.
3. David Collinson, interim Chair of the NTSB, is Assistant
Director – Public Protection at Norfolk County Council
4. The Competition and Markets Authority, will have the power to
tackle competition problems, and practices and market conditions
that make it difficult for consumers to exercise choice in an
otherwise competitive market. For these purposes the CMA will have
use of both its competition toolkit and will have powers to
enforce consumer protection legislation. The CMA will also have
primary enforcement responsibility in relation to the application
of unfair contract terms legislation.
5. From April 2013, the NTSB will receive additional funding from
the current OFT enforcement budget
6. In Scotland and Wales:
- The Convention of Scottish Local Authorities (COSLA) is
developing a parallel cross-authority mechanism in Scotland;
- Welsh local authorities will be fully represented on the
NTSB.
- Northern Ireland already has a separate system for consumer
enforcement and this will not be affected.
7. Further quotes:
Dominic Notarangelo,Chair of Citizens Advice Scotland said:
“Citizens Advice Scotland welcomes the UK Government’s
recognition of the key role the Scottish Citizens Advice service
can play in the provision of information, advice and education in
relation to consumer matters.
“The impact of the citizens advice network in Scotland is already
positive, significant and nationwide. With consumer functions, it
will be even more so. We are embedded into our local communities;
we are trusted; we are reliable and relevant. Delivering a one
stop consumer service will help citizens across Scotland.”
Mike O’Connor, Chief Executive of Consumer Focus said:
“I welcome the conclusion of the review of the consumer
landscape. We look forward to working in partnership with
Government and the Citizens Advice service in building a Regulated
Industries Unit to represent consumers’ interests in essential
markets including energy and post.”
8. BIS's online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom for more information.
Contacts:
NDS Enquiries
Phone: For enquiries please contact the issuing dept
ndsenquiries@co.gsi.gov.uk
Ed Smith
Phone: 020 7215 5945
ed.smith@bis.gsi.gov.uk