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BIS Response to Consumer Protection Consultation (1)
Monday, April 16, 2012
BIS Response to Consumer Protection Consultation
New proposals to make the Citizens Advice Service a champion for
consumer information across a range of sectors and a new National
Trading Standards Board were announced by the Department for
Business, Innovation and Skills.
In its
response to the consultation on institutional reform, the
Business Department has announced:
- Citizens Advice and Citizens Advice Scotland are taking on
responsibilities from the Office for Fair Trading (OFT) and
Consumer Focus (as announced previously)
- A new advice line succeeding Consumer Direct (launched by the
Citizens Advice service on 2 April)
- Citizens Advice responsible for representing consumers'
interests in unregulated sectors (replacing Consumer Focus)
- A new National Trading Standards Board (NTSB)
The new National Trading Standards Board "will bring
together representatives of Trading Standards from England and
Wales to prioritise, fund and co-ordinate national and regional
enforcement cases. The NTSB will be responsible for gathering
important intelligence from around the country to combat rogue
traders, and tackle priorities such as internet scams, illegal
money lending and other enforcement issues that go beyond local
authority boundaries."
Consumers need to know who to go to when they have a problem
which is why Citizens Advice and Citizens Advice Scotland will take
on responsibilities and resources from the Office for Fair Trading
(OFT) and Consumer Focus. The process has already started, and a
new advice line succeeding Consumer Direct was launched by the
Citizens Advice service on 2 April 2012.
The Citizens Advice Service will also take on responsibility
from Consumer Focus for representing consumers' interests in
unregulated sectors. This will leave a new, technical Regulated
Industries Unit working with the energy and postal services sectors
and their regulators, replacing Consumer Focus.
Trading Standards will continue to play a critical role in
protecting consumers and businesses, which is why Government is
providing increased funding of £10.5m for England, Wales and
Scotland to build on local expertise and strengthen mechanisms for
cross-boundary working - making it easier to catch unscrupulous
traders.
As part of the reforms, a new National Trading Standards Board
(NTSB) will bring together representatives of Trading Standards
from England and Wales to prioritise, fund and co-ordinate national
and regional enforcement cases.
The Convention of Scottish Local Authorities (COSLA) has also
set up a task group to look at how best to deliver the landscape
changes in Scotland in both the short and long term.
The NTSB will be responsible for gathering important
intelligence from around the country to combat rogue traders, and
tackle priorities such as internet scams, illegal money lending and
other enforcement issues that go beyond local authority
boundaries.
Consumer Affairs Minister, Norman Lamb, said:
"For too long people have been faced with an array of
different bodies for advice and support, but it's not always clear
who to turn to first. The Citizens Advice Service will become the
publicly-funded voice of consumers, championing their needs and
empowering them to make the right choices for themselves.
"There will also be clearer responsibilities and better
co-ordination between enforcers and consumer bodies. A new National
Trading Standards Board is exactly what we need to combat priority
areas such as loan sharks and internet scams.
"All of the reforms will ensure that we have the right
system of help, advice and protection for consumers."
David Collinson, interim Chair of the NTSB said:
"This is a real opportunity for Trading Standards to improve
the co-ordination and delivery of national consumer protection,
complementing the great work done by local authority trading
standards teams. The Government's decision is transformational,
enabling a truly joined up approach to tackling rogues and scammers
that operate across borders.
"In this first year we will build upon the excellent
collaboration that exists with our existing specialists teams such
as illegal money lending and regional scam/fraud teams, as well as
introduce new national capability on e-crime."
Gillian Guy, Chief Executive of Citizens Advice, said:
"This is good news for consumers. With consumer advice,
advocacy and education all under one Citizens Advice service roof,
consumers will get a service they know and trust: one that helps
them resolve their problem, learn how to avoid similar issues, and
get involved in making sure the same thing doesn't happen to other
people.
"Citizens Advice has a strong history of advising consumers
and championing their problems at a national and local level. We're
pleased that this decision will now allow us to do more to help
consumers in this way. We will work closely with Consumer Focus and
the Government to ensure a smooth transition for the benefit of
consumers."
The competition authorities will also continue to play a key
role in empowering and protecting UK consumers, following changes
announced to the competition regime in March.
The new Competition and Markets Authority (CMA) will be
responsible for promoting effective competition in markets across
the UK economy for the benefit of consumers and allow more
effective co-ordination with Trading Standards.
The reforms will also improve collaboration and intelligence
sharing between key organisations so that they work together for
the benefit of consumers. Members from the NTSB, CMA, the Regulated
Industries Unit and the Citizens Advice Service will share
intelligence and work together on enforcement, information and
education.
The partnership will report regularly to the Minister for
Consumer Affairs on how the system as a whole is delivering
benefits for consumers.
Above all, the proposals will help streamline the consumer
landscape and ensure a powerful consumer voice to business,
Government and regulators.