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Consumer Voice

The Department of Trade and Industry (DTI) launched a formal consultation on consumer representation and redress on 25 January 2006. Our commitment is to introduce measures to strengthen and streamline the current system of consumer advocacy and redress in the UK. The consultation document and partial Regulatory Impact Assessment (RIA) sought views on proposals to strengthen and streamline consumer advocacy, commonly known as the 'Consumer Voice' proposals (the consultation document is available here).

Background to the Proposals

In July 2004, the joint DTI/HMT Economic Regulation Team published a report entitled 'Consumer Representation in the Regulated Industries'. The report contained recommendations to strengthen and streamline the current system of consumer representation and redress across the utility sectors by consolidating the existing consumer bodies. A commitment to bring forward proposals to strengthen and streamline consumer advocacy was made in the Labour manifesto in May 2005, and reflected in the DTI Consumer Strategy, published in June 2005.

Consultation on Representation and Redress

The consultation on consumer representation and redress set out our proposals for reform and views were invited on the options laid out by 19 April 2006. The proposed model is made up of three key elements:

• the provision of a single point of contact for consumers across all markets (Consumer Direct) to obtain information and impartial advice;

• the extension of new redress schemes to all energy complaints and the postal services sector to resolve complaints where service providers have not been able to do so; and

• the consolidation of sectoral consumer bodies to form one stronger body, to represent the interests of consumers across all markets and to provide information and advice on the consumer perspective to business, to Government, and to the sectoral regulators.

The proposals set out crucial reforms to consumer representation and redress to provide:

• clarity and simplicity for consumers;

• coherent and cohesive consumer advocacy through "joined up" professional representation for the consumer interest;

• redress for consumers where things go wrong; and

• value for money for consumers.

As well as creating a more effective and efficient system of consumer representation across markets, it is anticipated that the new measures will result in monetary savings for industry, and ultimately therefore for consumers.

Having considered all the responses to the consultation, we remain convinced of the case for reform. The Government response to the consultation, along with a summary of the responses received and the full Regulatory Impact Assessment were published on 17 October 2006 (available here).

Legislation

Legislation will be required to deliver the new model for consumer representation and redress. More information on the Consumers, Estate Agents and Redress Bill that will introduce the Consumer Voice measures is available on the Bill pages (see link top right or in left-hand menu).