6 Educating consumers and businesses
302. In April 2012, the Government announced, following
consultation, that from April 2013, Citizens Advice and Citizens
Advice Scotland would be responsible for consumer-facing education
and consumer advocacy, and that the Trading Standards Institute
would be responsible for most business-facing education activities.[473]
The Competition and Markets Authority (CMA) may issue specific
guidance for businesses in the sector concerned, or in relation
to the application of unfair contract terms legislation where
the CMA has primary enforcement responsibility.[474]
303. Submissions to this inquiry from all groups
of stakeholders argued that an effective and timely education
campaign on the draft Bill and the wider reforms to UK consumer
law was a necessity.[475]
Regarding funding for such a campaign, the Minister said:
In terms of budget, we are at the draft Bill stage
at the moment and hoping to bring the Bill in, so we are not talking
about increasing budgets in this particular financial year, but
I do hope that we will be able to look at whether or not, even
with difficult resources, Government is able to commit to funding
some education initiatives.[476]
304. TSI said:
We feel a project following the enactment of the
Bill requires much greater investment to enable the approximately
one million consumer-facing businesses to fully understand their
new obligations. While we appreciate some of these businesses
will turn to the private training market to fulfil the knowledge
gap amongst staff, we risk leaving micro and small businesses
behind who are unlikely to recognise the change in their obligations
and perhaps even less likely to use paid-for sources of training
and information.[477]
305. Citizens Advice, who received 245,000 enquiries
on consumer issues and received a further 700,000 calls to its
Consumer Service telephone helpline in 2012/13, said:
One of the key objectives of the Bill is for consumer
law to be easy to use. In
order for this to become a reality consumers and
traders need to be aware of, and
understand, what the new law means for them.[478]
306. Citizens Advice argued for changes to the requirements
around the provision of point of sale information, specifically,
for appropriate point of sale information. A 2012 Citizens Advice
survey[479] asked consumers
how their consumer problems could be resolved more easily in the
future. 43% of respondents survey said that information about
their rights on receipts, at the till and on web sites would help
them to resolve problems with a trader.[480]
This is supported by the findings of a 2009 report of the Law
Commissions, commissioned by the then Department for Business,
Enterprise and Regulatory Reform:[481]
We recommend that there should be a summary of consumer
legal rights for faulty goods available at point of sale or in
another similarly prominent position in shops.[482]
307. Furthermore, Citizens Advice argued that the
Consumer Rights Directive provides that businesses must supply
to consumers a "reminder of the existence of a legal guarantee
of conformity".[483]
Citizens Advice argued that, while the detail of the requirement
was uncertain, this could require point of
sale information about consumers' legal rights. They said:
The Department for Business Innovation and Skills
have said that they believe that this requirement is merely for
a statement such as "You have a statutory guarantee that
the goods will be provided to you in accordance with the contract".
In our opinion this in not helpful. It does not really say anything
except that a trader cannot break the contract and certainly does
not inform the consumer as to their rights under that contract.
This Bill provides a real opportunity to provide consumers with
the information that they really need, rather than something which
does not tell them anything.[484]
308. Citizens Advice argued that a requirement for
point of sale information outlining the core rights for goods
and digital content (to include the statutory rights relating
to satisfactory quality, fitness for purpose and for goods and
digital content to be as described) should be included at clause
10 of the draft Bill, which sets out the statutory right that
goods will match the description.[485]
On the topic of consumer education, the Minister said:
It is important that businesses are really clear
about what their responsibilities are, making it easy for them
to train their staff[...]It is also important to make sure that
some materials are produced. As to whether that is point-of-sale
stuff, I am very happy to look at that. Personally, I like the
idea of being able to produce something the size of a credit card
with five key bullet points on it, which people could stick in
their purse so that they could check when they are out shopping.[486]
309. We conclude that lack of information about
and understanding of consumer rights is a key cause of disputes
and consumer detriment. In respect of improving consumer awareness
and understanding of their legal rights and obligations, we agree
with Citizens Advice that there is little point in requiring businesses
to provide consumers with a reminder of the existence of a legal
guarantee of conformity.
310. We recommend that the Government, in conjunction
with Citizens Advice, the Trading Standards Institute and the
Competition and Markets Authority, must set out a clear and detailed
education strategy for both businesses and consumers in relation
to the draft Bill and its wider reforms to consumer law in the
UK.
311. We support the recommendation of Citizens
Advice for inclusion of an express requirement, in clauses 10
and 38 (Goods and Digital Content to be as described) and clause
52 of the draft Bill (Information about the trader or service
to be binding), for a trader to provide information about the
relevant core statutory rights at the point of sale.
473 Department for Business, Innovation and Skills,
Empowering and protecting consumers: government response to the
consultation on institutional reform, page 7 Back
474
Ibid., page 7 Back
475
For example, Ev w17, Ev 59, Ev 78, Ev 83, Ev 62 Back
476
Q174 Back
477
Ev 78 Back
478
Ev 62 Back
479
http://www.citizensadvice.org.uk/redressing_the_balance Back
480
Ibid., p10 Back
481
Now DBIS Back
482
The Law Commissions, Consumer Remedies for Faulty Goods,2009,
paragraph 7.28 Back
483
Ev 63 Back
484
Ibid. Back
485
Ibid. Back
486
Q174 Back
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