OFFICE OF FAIR
TRADING News Release (65/09) issued by COI News Distribution Service
on 8 June 2009
Action by local
authority Trading Standards Services (TSS) to protect the public
from unfair trading practices saves UK consumers at least £347
million a year, the OFT revealed today.
In a new study OFT found that, on average, for every £1 that TSS
spend on this work, they deliver direct consumer savings of at
least £6.
The overall figure of £347million includes:
* an estimated saving of at least £228m a year delivered by TSS
through tackling unfair trading practices. This includes actions
against traders providing goods and services without reasonable
care and skill, misleading claims and omissions, aggressive and
coercive selling or unfair contract terms.
* an estimated saving of at least £119million a year delivered by
TSS advice and assistance to consumers.
The groundbreaking research is the first time the financial
impact of this work, carried out by nearly 200 TSS across the UK,
has been evaluated. The OFT is also encouraging individual TSS to
use the same methodologies to estimate consumer savings they
deliver locally.
OFT Chairman Philip Collins said:
'The current economic climate means that work by local
authority Trading Standards Services to promote and maintain fair
trading in their communities and across the UK is more important
than ever.
These findings demonstrate the very substantial contribution that
Trading Standards Services make to the economic prosperity of the
UK by protecting consumers and preventing them losing hundreds of
millions of pounds each year.'
Consumer Minister Gareth Thomas said:
'The impressive work of Trading Standards Services
translates into nearly £350million of savings each year for
consumers. Trading Standards is working hard to stop rogue traders
ripping people off whilst ensuring that businesses can still
compete effectively.'
Councillor Geoffrey Theobald OBE, the Local Authorities
Coordinators of Regulatory Services (LACORS) Chairman said:
'This report from the OFT shows how valuable council trading
standards services are to local people and they really do save
them and businesses a lot of money. It shows that in levelling the
playing field for all, council trading standards officers are
keeping an extra £347 million in people's pockets and
confirms they are doing everything possible to protect consumers
and ensure that businesses can compete fairly.'
Download the research at http://www.oft.gov.uk
1. The OFT research was carried out in partnership with over 25
TSS, and with strategic assistance from LACORS, East Sussex TSS,
Warwickshire TSS, and City of York TSS.
2. TSS are funded by and accountable to local authorities and
they work to local priorities set by councillors which focus on
the particular needs of the local community, as well as national
priorities set by government departments and agencies. TSS enforce
a broad range of legislation which, as well as fair trading, often
includes responsibility for animal health, food safety and
underage sales of tobacco, alcohol, knives and fireworks. The
scope of the evaluation is limited to the financial impacts of TSS
fair trading work.
3. The OFT is the UK's competition and consumer protection
authority. The OFT works in partnership with TSS across the UK to
promote and protect the interests of consumers and businesses. The
OFT also takes a role in providing strategic leadership and
support to TSS in relation to the fair trading remit that the OFT
and TSS share. This evaluation is a product of that strategic
leadership and support role.
4. LACORS (the Local Authorities Coordinators of Regulatory
Services) is the local government central body responsible for
overseeing local authority regulatory and related services in the
UK. LACORS is a local government central body created by the UK
local authority associations which comprise of the Local
Government Association (LGA), Welsh Local Government Association
(WLGA), Convention of Scottish Local Authorities (COSLA) and
Northern Ireland Local Government Association (NILGA). LACORS is
mainly funded from local government monies.
http://www.oft.gov.uk
PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk
OFT
reports and consumer information leaflets are available free
from:
OFT, PO Box 366, Hayes UB3 1XB 0800 389 3158 oft@ecgroup.uk.com