18 April 2008 Media Release SCOTLAND BACKS CRACKDOWN ON ROGUE TRADERS SCOTSS, the Society of Chief Officers of Trading Standards in Scotland, today welcomed the introduction of new regulations that should help protect Scottish consumers New research, released today, reveals that consumers in Scotland are fed up with being ripped off by rogue traders. A Department for Business survey of consumers in Scotland found that: • 96% of people want a crackdown on misleading, aggressive and unfair sales practices • 8 out of 10 people have had pushy salesmen at the door or on the phone who won’t take no for an answer • More than 7 out of 10 have experienced repeated sales pitches from the same firm, despite telling them they did not want to hear from them again • 45% of consumers have been duped into buying something after being given misleading information • 94% have been told they’ve won a competition they never entered The Government is proposing a new law to help crack down on these practices. If they are approved by Parliament, the Consumer Protection Regulations (CPRs) will come into force on 26 May. The CPRs could represent one of the biggest changes to consumer law in decades, aiming to stamp out unfair selling by any business that sells to consumers – from hotels and builders to high street shops. Consumer Affairs Minister, Gareth Thomas, said: “Consumers have the right to be treated honestly and fairly whether shopping on the high street, at home, through a catalogue or online. Life is going to get tougher for the small minority of rogue traders who treat customers with contempt, pressuring, bullying or lying their way into making a sale. These practices will not be tolerated.” Broadcaster and crime campaigner, Nick Ross, said: “This is long overdue. Far more people are victims of scams and rip-offs than crimes that make headlines, and rogue traders cause huge amounts of anger, grief and sometimes profound distress. Some victims feel intimidated; many are vulnerable. Any law is only as good as its enforcement, but this blocks loopholes and gives consumers far more rights and protections than we have ever had.” The CPRs will ban 31 types of unfair sales practices outright including bogus closing down sales, prize draw scams, aggressive doorstep selling, offering free gifts that aren’t really free and displaying false accreditations – such as wrongly claiming to be a CORGI-registered plumber. They will also for the first time establish a catch-all duty not to trade unfairly, closing loopholes that rogue traders have previously been able to exploit. Local authority trading standards and the Office of Fair Trading will enforce the new law and will be able to use a wide range of sanctions against businesses which break the rules. Depending on the seriousness of the offence these could include unlimited fines and lengthy prison sentences. David Thomson, Chair of SCOTSS (Society of Chief Officers of Trading Standards in Scotland), said: "We expect the regulations to strengthen our arm in cases where unscrupulous businesses exploit people, particularly the vulnerable. They will tackle misleading and aggressive practices that caused problems in the past, such as coercion, harassment and undue influence. "The new regulations will introduce, for the first time into UK law, a general duty on all businesses NOT to trade unfairly with consumers. Until now Trading Standards Services have had to ensure that there exists a specific piece of legislation that covered a trading practice that was unfair to the customer. We all know examples where, by the time a new law has been passed to outlaw or regulate a practice (such as in the early days of timeshare), the rogues have moved on with a new scam that sidesteps the legal requirements. For many years we have been one step behind in the battle against the rogues and we hope that, in effect, this new legislation gives us the flexibility and scope to be one step ahead." People can find out more about their rights under the Consumer Protection Regulations, and information and advice on all consumer issues, from Consumer Direct on 08454 04 05 06 or by visiting the website at www.consumerdirect.gov.uk Case studies False prize draw Letters headed ‘Official Payout Notification’ told people they were guaranteed to win a prize. They had to ring a hotline to claim. People had to listen to the whole message to find out if they had won a prize. The call cost £6. People were instructed to write in with their claim. Thousands of people did all this, but it appeared none received a price. A prosecution was brought in this case, but enforcement authorities said it would have been simpler - cheaper and quicker – under the CPRs. Aggressive doorstep selling A doorstep salesman scares elderly people into buying a burglar alarm system. There is a variety of legislation in this area, but it is inadequate because, unlike the CPRs, it does not cover the inherent unfairness and aggressive nature of the sales technique. The CPRs will combat the pressure sales element of certain doorstep sales, which do not currently constitute a breach of the law. Misleading actions A trader cold calls consumers. To make them feel secure he falsely tells them that the products he is selling have been thoroughly tested and approved by a professional institution. This practice is frequently used by rogue doorstep sellers. It will be a lot easier to take action against this and other misleading practices under the CPRs. ENDS For more information on the Consumer Protection Regulations please contact the CPR press office on 020 7025 7565 or email BERR@trimediauk.com Notes to editors • The Consumer Protection from Unfair Trading Regulations implement the Unfair Commercial Practices Directive which establishes consistency of trading across the EU, making it easier to market goods and services to an internal market of 460 million consumers. •The legislation will primarily affect businesses across the UK who trade directly with consumers or whose products are used by consumers and cover goods, services, obligations and contractual rights wherever trading takes place including on the high street, online, by phone or via TV. BERR believes there are around 750,000 affected businesses in total in the following sectors: o Second-hand motor trade o Timeshare and holiday clubs o Home maintenance, repairs and improvements o Betting, competition and prize draws o Sale and repairs of motor vehicles o Retail o Hotels, restaurants and take away food services o Rental of automobiles o Rental of sports and recreational equipment, incl. TV and video rentals o Dry cleaning, hairdressers, beauty treatments and physical well-being Further information on trading standards and weights and measures is available from local Trading Standards services which can be found through the SCOTSS website www.scotss.org.uk SCOTSS is the professional body which represents trading standards services in all 32 Scottish local authorities. It coordinates fair trading, safety and weights & measures issues across the country. As a section of the Trading Standards Institute its purpose is to promote excellence and enhance the professionalism of its members in support of informing consumers, encouraging honest businesses and targeting rogue traders.