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National Consumer Week

Gareth Thomas MP,  Former Minister for Trade, Development and Consumer Affairs (jointly with DFID)
BERR Conference Centre, 1 Victoria Street, London,  17 November 2008

Ladies and gentlemen. Ron and John – thank you.

I am very pleased to be here today to help launch this year’s National Consumer Week.

And your theme – to be a savvy shopper this Christmas – is particularly timely.

All of us as consumers face a period of real uncertainty ahead; the credit crunch and global economic downturn putting more pressures on household budgets than ever before.

This Christmas will be tough for many families. With finances squeezed, it will be even more important that consumers are able to shop with confidence and with the full protection of the law behind them.

As TSI will highlight this week, consumers need to be aware of fake and even dangerous goods when they shop for bargains.

There is clear advice for avoiding these type of goods.

• Always buy from a reputable retailer;
• Beware of fly-by-night traders who won’t be around when your goods break down;
• And let’s face it, if the price is too good to be true - then it probably is.

Whether you buy your festive gifts in the high street, at home or on-line – it is important you know your rights.

To take one example: This Christmas will see more people than ever shopping over the Internet.
As the Internet has grown, consumers have been provided with more protections to safeguard them when they shop on-line – such as a seven day cooling off period.

However, it is still important to be careful when shopping online as there are potential pitfalls. Shoppers should use sites that have been recommended, check where traders are based and always read the small print.

I continue to be impressed – and very grateful – for much of the day-to-day work that those of you who work for the OFT and Trading Standards are involved in. Safeguarding consumers and tackling the criminals and rogue traders who try to take advantage of the most vulnerable members of society.

Over the last 12 months we have introduced new laws to help you in cracking down on rogue traders; new laws which mean:

• Consumers now have rights to protect them from high pressure doorstep sellers
• All estate agents in the UK must belong to an approved ombudsman scheme – giving consumers the right to challenge bad practice
• Borrowers will receive better protection from disreputable lenders – while enforcers get strengthened powers to crack down on those lenders; and
• We’ve introduced tough new customer redress schemes in the energy and postal sectors

We have also set up a powerful new consumer champion in Consumer Focus; giving consumers a stronger, more effective voice to engage with Government, business and regulators.

But it’s not just about protecting consumers in the UK.

A benefit of the UK being part of the European Union is that citizens have similar levels of consumer protection when buying goods and services from other Member States.

On the home front we continue to provide enforcers with the support and resources they need to tackle the criminals and rogue traders.

Earlier this year, we announced funding for Trading Standards to set up a Scambuster team in every part of Britain.

We have also provided resources for specialist teams across the country to tackle loan sharks.

All these teams are working around the clock to ensure that the credit crunch doesn't drive people into the arms of illegal money lenders.

Of course, no-one should borrow more than they can afford, especially in these uncertain times. But if you need access to affordable credit, it is important to be savvy and make sure you get the best deals.

To help, we are working with the credit union sector to examine ways to expand the provision of affordable credit alternatives by third sector lenders.

Consumer Law Review

Compared with other countries, an independent report in the summer by the University of East Anglia confirmed that the UK is now among the best in providing information, advice and protection to consumers.

But we also accept that UK consumer law is very complex – with an admin burden of more than £1bn.

And ultimately it’s consumers who pay for this.

The review of Consumer Law I initiated 6 months ago is looking at how we can ensure well-targeted protection for consumers while avoiding unnecessary costs on business.

I am determined that we should modernise and simplify the law. But not at the expense of consumer protection.

We need a regime that keeps up with changing markets and technologies; providing consumers with strong protection as they buy their goods and services through new channels and across borders.

So we are looking at ideas around enforcement and the effective targeting of resources towards non-compliant business.

We are also exploring consumer awareness, empowerment and the right of redress when things do go wrong.

And I am pleased to be able to say today that we will be working jointly with Consumer Focus and OFT to launch a major new consumer education campaign in the New Year.

The aim is to raise awareness to consumers who shop in the high street, on line and at home; making them aware of their rights and how to use them. I hope to be able to reveal more details about this project soon.

To complement this work, we have also done some important research to help us understand the experiences of consumers.

The first ever MORI Consumer Conditions Report, published on our website today, reveals in detail what people think about a wide range of products and services.

It looked at:

• how consumers can compare quality and price;
• the choices available to them;
• whether purchases live up to expectations; and
• the protection of consumer rights.

This survey also provides extremely useful information for business.

People are trying to make their pay packet stretch even further at the moment and are getting increasingly choosy about the products and services they buy.
To get ahead, businesses have to focus on consumers and get their products, services and pricing exactly right.

Businesses that relentlessly focus on the needs of consumers will continue to be the ones that succeed. More often than not, what is good for the consumer is also good for business. It makes business sense.

Conclusion

I said at the start that these were uncertain times for all of us as consumers.

In BERR, we remain committed to being the voice for consumers – by creating a consumer and competition regime which puts consumers at the heart of our economic prosperity.

I look forward to working with all our partners – in fact, many of those here in the room today – in realising these ambitions.

Thank you.