Effective Redress
6.1 A Hierarchy of Redress
6.1.1 Any new policy framework for consumer redress is bound to feature a hierarchy of approaches which people can make. For example:
- An effective, responsive and free complaints procedure within the business/organisation itself
- An effective, publicly organised, complaints procedure
- Cooperative trade organisations providing free dispute resolution service
- Alternative dispute resolution services
- Litigation routes
- An overarching consumers’ ombudsman service (operating much like the current Financial Services Ombudsman)
Any new framework would need to recognise existing structures, and envelop them in a consistent and easy-to-understand way.
6.2 Consumer Focus
6.2.1 On 1st October 2008, the new Consumer Focus organisation came into formal being (subsuming Energywatch, Postwatch and the National Consumer Council). Consumer Focus is an attempt to create a single statutory consumer organisation which has:
the right to investigate any consumer complaint if they are of wider interest, the right to open up information from providers, the power to conduct research and the ability to make an official super-complaint about failing services.
6.2.2 Consumer Focus is an advocacy body rather than a consumer advice service (such as Consumer Direct or Citizens Advice) or a statutory regulator (OFT). It remains to be seen if it can become a clear and visible presence to the general public seeking redress.
6.3 Enforcement
6.3.1 The shift to “principles based regulation” makes enforcement more rather than less important. One of the most effective enforcement tools is the “stop now” injunctive power that Trading Standards can use under the Enterprise Act. Enforcement needs to be pro-active and focussed, for example on scam-busting. But we need to investigate whether trading standards and OFT officers are equally effective across the regions and sectors.
6.4 Clarity of Purpose and Roles Within and Between Institutions
6.4.1 For example, following the Consumer, Estate Agents and Redress Act, it remains unclear how the Local Better Regulation Offices will work with local Trading Standards offices. The Regulatory Enforcement and Sanctions Act also raises the issues of where and how Trading Standards should operate with criminal law powers – and therefore complicates the trading standards officers’ relationships with law enforcement. And there is the bigger question of how Consumer Focus will work alongside Consumer Direct, other bodies such as Citizens Advice and Which?, and the statutory regulators.
6.5 Complaints, Dispute Resolution & Litigation
6.5.1 There are a number of avenues open to consumers who are in need of redress. However, few consumers have the means or inclination to seek formal legal advice. There is a clear requirement for legal advice and representation to be available to consumers at reasonable cost. The emasculation of legal aid over recent years has made legal services more difficult to access.
6.5.2 There are a number of national and EU networks that can provide advice and help with alternative dispute resolution, but there are calls for stronger tools. This includes making it easier for consumers to access and work with different legal and judicial systems, and the ability for consumers to seek redress collectively to overcome the financial burden of seeking redress.
Questions
- How can avenues for redress and dispute resolution be strengthened?
- Should there be an additional private right to redress for breaches of statutory duties under consumer protection legislation?
- Regarding Ombudsman Schemes, should there be a single consumer ombudsman? An “ombudsman of ombudsmen”?
- How can avenues for redress and dispute resolution be strengthened?
- How can consumers be better assisted to launch and pursue small claims?
- How can collective redress options be strengthened?
- If consumers are to be encouraged to shop cross-border, how can we make sure that there are systems in place to help them should they experience problems?
- Are there areas of discrimination in the supply of goods and services that call for further extension of Equalities legislation in the consumer field?
