Mary McKeown

Trading Standards Service

Structure

• Part of central government

• DETI

• Approximately 40 officers for whole of Northern Ireland

• Offices in Armagh, Belfast, Ballymena, Enniskillen and Londonderry

Trading Standards Service

Weight and measures legislation goes back centuries………..

• 20th Century saw the rise in consumerism• 1960s onwards has seen the

implementation of legislation to protect consumers

• 1970s saw the start of legislation from Europe

Role of Trading Standards Service

• Our aim is to promote a fair trading environment in which consumers are protected against malpractice, and responsible business activity is actively encouraged.

How?

• Enforce the criminal provisions of Consumer Protection Legislation

• Investigate any possible breaches

• Provide advice to businesses

• Provide advice to consumers

• Prosecute where necessary

Overview

• We check• That you get a full pint of beer• That your drink is not watered down• That your cotton t-shirt is cotton • That you get the amount of fuel you pay for at

the pump• That your jewellery is sterling silver• That the mileage on your car is genuine

Other activities

While enforcing legislation is important Trading Standards carries out many other roles:-

• Media work• Fund debt advisers• Talks to schools, business, community groups,

vulnerable groups• Work with other agencies such as Police, Customs and

Excise, Citizens Advice and independent advice centres • Consumerline

Jim Frazer

Trading Standards Service

Consumer Credit Act 1974

• Primary source of protection for consumers of credit

• Aims to protect against any inequality between the consumer and finance Co.

• Provides for ‘truth in lending’

• Provides for criminal offences

What is credit?

• ‘a cash loan or any other form of financial accommodation’

• For individuals

• Total amount payable does not exceed £25,000.00

• Is not one of the exemptions under the Act

Consumer Credit Licence

Holder of licence must be fit person to engage in activities covered by the licence

• Consumer hire business• Credit brokerage• Debt-adjusting• Debt-counselling• Debt-collecting• Credit Reference Agency

Equal Liability

Perhaps the most effective legal provision for protecting the consumer!

• Section 75 Consumer Credit Act 1974• Allows for joint or severable liability between

supplier and creditor where there has been a breach of contract

• Goods or services must have cost more than £100 or less than £30,000

• Includes transactions made abroad

Extortionate Credit

A Court can re-open any credit agreement it considers grossly extortionate

Factors it will consider:-• Interest rates at the time• Age• Experience• Capacity and health of debtor• Any other relevant circumstances

Cancellable Agreements

Provides protection in the form of a cooling off period for consumers

• Regulated agreement• Antecedent negotiations• In presence of debtor• Signed off trade premises

Cooling-off period

Once consumer receives second copy of agreement or cancellation notice through the post:-

• 5 days following the day agreement or cancellation received

• You must cancel in writing• Goods returned and payments handed back

Distance Selling Regulations 2000

• No face to face contact

• Customer unable to examine the goods

• Enhanced rights for consumer

• Short period for withdrawal

Distance Selling

• Internet

• Text Messaging

• Phone calls

• Fax

• Mail order catalogues

• Interactive TV

Pre – Contract Information

MUST INCLUDE:-• Business name• Business Address (if seeking payment in advance)• Description of goods or services• Full price (including any taxes)• Details of delivery costs• Details of how payment can be made• Arrangements for delivery and when customers can

expect goods to be delivered• Information on the right to cancel

Durable Form

• In writing:- post, fax, email• If contract by phone information must be

given in writing• If information held in a catalogue or

advertisement no requirement to send this durable form

• Must be given for goods at the latest when they are delivered and services at latest during performance

Cancellation Provisions

• 7 working days from the day after goods received or receive notice of cancellation, whichever is later

• For services 7 working days from the day after the customer agreed to go ahead with contract or received notice, whichever is later

If no cancellation provisions

• Deadline extended

• 3 months and 7 working days from the day after the customer receives goods or the service contract is concluded

Can the customer always cancel?

No! The provisions do not apply to:-• Goods made to the customers own specification• Goods that cannot be returned• Goods or services where the price depends on

fluctuations in the financial market• Betting/lottery services

How to cancel

• In writing or durable medium

• Letter

• Fax

• Email

NOT BY A PHONE CALL

Trading Standards Service

Bronagh Deery

Trading Standards Officer

The Consumer Protection from Unfair Trading Regulations 2008

• Came into force in May 2008

• Implement the EU’s Unfair Commercial Practices Directive

• Primary objective is to;

“harmonise consumer protection law across the EU by clamping down on unfair sales and marketing

practices between businesses and consumers.”

What do the Regulations apply to?

• Business-to-consumer transactions

• Conduct before, during and after the contract is made

• Replace large parts of existing consumer protection legislation

• Represent the biggest change in consumer protection legislation for 40 years

What do the Regulations do?

• Clamp down on unfair commercial practices

• Protect consumers and honest businesses

• Replace some existing legislation with general ban on unfair trading

• Contain specific prohibitions relating to misleading actions and misleading omissions about products or services

• Stop aggressive selling techniques

Benefits?

• Force traders to act in a manner consistent with the reasonable expectations of the average consumer

• Enable consumers to make free and informed purchasing decisions

• Clamp down on traders who use underhand tactics to gain an advantage

• Create a level playing field for traders

What do the new Regs cover?

i. General prohibition on conduct below an expected professional level

ii. Misleading practices – actions and omissions

iii. Aggressive sales techniques that use harassment, coercion or undue influence

iv. 31 specific banned practices

General prohibition – general duty not to trade unfairly

• States that a commercial practice will be unfair if:

- it contravenes the requirements of professional diligence (honest practice) AND

- it materially distorts (or is likely to) the economic behaviour of consumers with regard to a product

• Professional diligence - standard of skill and care that is reasonably expected of a trader in that trader’s field of activity

• Acts as a safety net – includes practices that do not fall into specific prohibitions of misleading and aggressive practices and 31 specific banned practices

Misleading Action

A commercial practice is a misleading action if:

• It contains false information relating to a list of specified matters, or if its overall presentation is likely to deceive consumers, and;

• It causes consumers to take a transactional decision they would not otherwise have taken

Specified Matters

• Can relate to main characteristics of product, price, the need for a service, replacement or repair, approval of external body, trader’s qualifications, date of manufacture, after-sales assistance, fitness for purpose, specification, mileage, full service history, origin of product

Common examples of misleading actions

• Car odometer reading 50,000 miles when it has in fact travelled 150,000 miles

• Price indication on product stating £10 but charged £20 at till

• Trader claiming to be approved by Trading Standards

• Service garage stating that a car needs a particular part replaced

• Product stating “made in Italy” when it has not

Misleading Prices

• Price indicated must be actual price consumers should pay

• Non-optional extras must be included in price (no hidden extras)

• Prices in advertisements must be same as price displayed (advertised price should be valid until next edition of publication)

• VAT inclusive

Misleading PricesPrice comparisons in

general• Previous higher price

and new lower price should be shown

• Most recent price available for 28 consecutive days

• Show intervening prices• CoP for Traders on

Price Indications

Sale£9999£8999

NOWONLY£8499

Misleading Omissions

A commercial practice is a misleading omission if:• It omits or hides material information, or gives it

in an unclear, unintelligible or untimely manner, and;

• It causes consumers to take a transactional decision that they would not otherwise have taken

Material information

• Information that consumers need to have in order to make an informed decision

• Will depend on circumstances – what product is and where and how it is offered for sale

• May only need small amount of information for simple products and more information for complex products

Common examples of misleading omissions

• Failing to display prices of food and drink in restaurants prior to consumers ordering

• Failure to display price of car parking at point before consumers enter car park

• Failing to indicate that a contract must run for a minimum period

• Failure to indicate that goods are second hand• Failure to inform consumer that vehicle has been

in a accident

Aggressive Practices

A commercial practice is aggressive if:

• It significantly impairs consumers freedom of choice in relation to the product through the use of harassment, coercion or undue influence, and;

• It causes the consumer to take a transactional decision that they would not have otherwise taken

Common examples of aggressive practices

• Mechanic, who has done more work to car than agreed, refusing to give the car back until he has been paid

• Trader selling credit who pressurises an existing borrower to take out an additional loan

• Trader who refuses to leave a consumer’s house until consumer signs contract

• Debt collector who harasses debtor by contacting them at unreasonable hours and at unreasonable locations (such as work)

Banned Practices

• Blacklist of 31 practices that are banned at all times as they are deemed to be so serious (see fact sheet for full list)

• No need for consumer – no requirement to prove that consumer took a different transactional decision

Common examples of banned practices

• Falsely claiming a trader is “CORGI” registered or a member of “FMB”

• Falsely claiming that a trader is about to close down when they have no intention of closing

• Falsely claiming that a product can cure illness• A car trader giving the impression that they are a

private seller• Falsely creating the impression that the

consumer has won a prize

Enforcement and Penalties

• The regulations are enforced by Trading Standards Service and the OFT

Penalties• On conviction a person is liable to;

– Magistrates Court a fine up to £5,000– Crown Court an unlimited fine and/or 2 years

imprisonment

Thank you

• Bronagh Deery

• Email: Bronagh.Deery@detini.gov.uk

• Consumerline: 0845 600 62 62