New Consumer Rights Bill should give regulators power to “name and shame” dodgy businesses

Citizens Advice welcomes proposals to simplify regulations but wants more powers to help customers get justice against bad practice.

Gillian Guy, Chief Executive of national charity Citizens Advice, today welcomes draft legislation to simplify consumer regulations, but warns that more powers for customers are needed to tackle businesses who treat people unfairly.

Earlier this year, Citizens Advice revealed that thousands of its clients had made complaints about purchases which were worth a total of £185 million.  The charity has recommended that businesses should be required to tell customers their rights before a purchase is made, and says regulators should “name and shame businesses” who refuse to follow the rules.

The draft Consumer Rights Bill, published by the Government today (Wednesday), aims to simplify existing rules around bought goods and services so that customers and retailers know their rights and responsibilities when purchases go wrong.  To make it easier to get redress, Citizens Advice has called for groups of customers to be given the power to campaign collectively for compensation from businesses in any circumstances of unfair treatment.

Citizens Advice Chief Executive, Gillian Guy, said:

“Simplifying the complex web of consumer regulations is vital to our economy and to customers who often lose money as a result of confusing or weak regulation. Today’s proposals are a welcome development, but streamlining existing rules won’t be enough without urgent, strong, new tools for customers to get fair treatment.

“Regulators should name and shame businesses which refuse to put right bad practice so that customers know who they can trust to treat them fairly.  As well as protecting customers, naming and shaming by enforcers would prevent dodgy businesses gaining a competitive advantage over companies that abide by the law.

“Last year our clients collectively spent £185 million on daily goods, like clothes, that were not up to scratch.  Campaigning against business can be a scary prospect, and Citizens Advice wants customers to be able to claim compensation collectively whenever something goes wrong, not just in the limited circumstances suggested by the Government today.

“Businesses should be required to tell customers what their rights are and what to expect from a service before parting with money. Displaying consumer rights prominently and in writing at the point of sale would avoid stressful, time-consuming disputes later on”

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Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .

  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk . You can also get advice online at adviceguide.org.uk

  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers

  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends

  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.