Consultation on Modernising Trading Standards 

Government Response.

The recent consultation on Modernising Trading Standards services aimed to give business, consumer and other interested parties an opportunity to comment on the proposed performance management system for Trading Standards.

A summary of the Responses we received can be found here.

Shown below are the Government's response to the main findings from the Consultation. 

1. In general respondents from all sides welcomed the proposals.

Response: The consultation with key stakeholders has been valuable and the Government is encouraged by the support for these proposals.  

2. The scheme would need to be evaluated in the longer term. More guidance for Trading Standards Authorities on priorities was needed and these should be reviewed annually.

Response: The Government agrees that the performance framework for Trading Standards will need to be reviewed and evaluated. We will monitor and evaluate its effect on Trading Standards performance annually with a view to improving and amending it in the light of experience and changing priorities. The Government agrees that key stakeholders should be involved in the review process. 

3. The emphasis on increased dialogue between Trading Standards Authorities and the business community and educating business to improve compliance was welcomed, as was the emphasis on consumer advice.

Response: In developing our priorities with Trading Standards we have sought to recognise and promote the role the service has in helping businesses to succeed and creating well-informed more confident consumers as well as its responsibility for taking more formal enforcement action. We believe that a well-balanced combination of these priorities will contribute to making markets work.  We are pleased to note that business and consumer groups have welcomed this.

4. There was general consensus that better performance indicators would need to be developed to focus on quality of outcomes against measures in the plan. Consumer groups suggested measures of reducing consumer detriment, effectiveness of consumer advice, staff qualified to give consumer advice, access and cost should be developed.

Response: The Government agrees. We are committed to developing the performance framework year on year with a view to putting in place robust outcome performance indicators. This will be a challenging task for the next few years given the wide range of views on what should be measured and the potential for performance indicators to drive behaviour. In the current framework we have made a start by seeking to collect information which will give us a better understanding of what happens now with a view to finding out how one set of activities relates to another.

On the specific suggestions we received through this consultation, the Service Delivery Plan will provide some insight into the proportion of staff qualified to give consumer advice and about access and will encourage more internal monitoring of advice. Our plans to monitor and report on the framework will ensure this information is put to use. We would agree that measures of reducing consumer detriment and cost would be useful. We will consider how these could be developed as well as welcoming further input from stakeholders

5. Some business respondents thought there should be some measurement of formal enforcement activity to provide insight into different authority approaches.

Response: Both business respondents and many of our pilot Trading Standards authorities were keen to see some measurement of more formal enforcement activity, partly to ensure this work is recognised and partly to enable comparisons to be made across authorities. We agree with this and we have introduced a requirement to report on compliance and formal enforcement actions in the end-year information return.

6. Business respondents suggested to some degree or other ways of strengthening efforts to ensure greater consistency in interpretation and enforcement on the part of TS bodies with regard to fair trading and consumer protection generally. Several respondents including CBI and BRC felt there needed to be more emphasis on standardising the application of the Home Authority principle, the Enforcement Concordat and the Code for Crown prosecutors.

Response: The Government fully supports the Enforcement Concordat, Home Authority principle and Code for Crown Prosecutors and there can be no doubt that adherence to these standards is crucial to achieving a more consistent approach to enforcement of consumer protection legislation. These principles have been enshrined in the framework as standards and all services are required to set out the provisions they are making to meet the standards. In recognition of the consultation responses we have provided additional guidance on the Service Delivery Plan, emphasising the requirement to meet these standards.

7. The Government should consider including some specific standards, in relation to anti-piracy, product safety and age restricted sales test purchasing.

Response: When we were developing the performance framework we were keen to avoid prescribing specific standards in relation to the multitude of regulations and statutes, which Trading Standards enforce. We recognised the need to ensure local services have the scope to determine how to create a fair and safe trading environment, taking into account local circumstances and local consumer and business expectations. The approach we have taken in the performance framework will ensure a common approach to assessing risk and ensure that a programme of action is set out and undertaken.  It requires services to adhere to LACOTS risk assessment guidance which is being improved and brought up to date. We do not want to undermine this by prescribing specific areas for targeting.

8. There were several concerns, particularly from business respondents and local authorities,  that without proper resourcing and staffing of the Trading Standards service, the Performance Improvement Framework would be undermined.  Better funding from Central Government is needed.

Response: The Government agrees that Trading Standards Authorities need proper resourcing and considers that setting clear priorities for the service is a step towards ensuring this. By setting out a common set of standards and priorities and by measuring and reviewing achievements against the Service Delivery Plan, the performance framework will help services to determine the level of resources needed and make their case better when competing against other services within the local authority. The effectiveness of the framework will be monitored and evaluated. Promotion and evaluation of the framework and new initiatives in joined up working are being supported by this Department’s Modernisation Fund.

Responses to Consultation on Modernising Trading Standards.

| Summary of Responses | Views from Industry & Businesses | Comments by Business & Industry | Views from Consumer Organisations | Comments by Consumer Groups | Views of Local Authorities | List of Respondents

The recent consultation on Modernising Trading Standards services aimed to give business, consumer and other interested parties an opportunity to comment on the proposed performance management system for Trading Standards.

The views received in response to this consultation have been considered alongside the pilot feedback received from the nineteen Trading Standards  authorities who piloted the package during the Summer of 2001.  The package has been amended to take account of these views.

The National Performance Framework for Trading Standards is expected to be issued to Trading Standards authorities early in January 2002 in time for implementation in April 2002.

The Government Response to the findings of the Consultation can be read by clicking here.

SUMMARY OF RESPONSES

There have been 20 responses in total, ten from business or trade associations including the CBI, British Retail Consortium and Independent Retailers Confederation and three from individual companies.  The consumer side was represented by responses from the National Consumer Council, NACAB, Institute of Consumer Affairs and RoSPA.  Six responses were received from Local Authorities (others being represented through the pilot arrangements).

A list of respondents is attached.  Individual responses can be viewed in the DTI Library.

MAIN FINDINGS

1.       In general respondents from all sides welcomed the proposals.

2.       The scheme would need to be evaluated in the longer term. More guidance for TSAs on priorities was needed and these should be reviewed annually.

3.       The emphasis on increased dialogue between TSAs and the business community and educating business to improve compliance was welcomed, as was the emphasis on consumer advice.

4.        There was general consensus that better performance indicators would need to be developed to focus on quality of outcomes against measures in the plan.

• Consumer groups suggested more emphasis on measures of reducing consumer detriment, effectiveness of consumer advice, staff qualified to give consumer advice, access and cost should be developed.

•Some business respondents thought there should be some measurement of formal enforcement activity to provide insight into different authority approaches.

5.        5.         Business respondents suggested to some degree or other ways of strengthening efforts to ensure greater consistency in interpretation and enforcement on the part of TS bodies with regard to fair trading and consumer protection generally. Several respondents including CBI and BRC felt there needed to be more emphasis on standardising the application of the Home Authority principle, the Enforcement Concordat and the Code for Crown prosecutors.

These are already standards.  We will emphasis them further in the guidance.

6.          Government should consider including some specific standards in relation to anti-piracy, product safety and age restricted sales test purchasing.

7.       There were several concerns, particularly from business respondents and local authorities that, without proper resourcing and staffing of the Trading Standards service, the Performance Framework would be undermined.  Better funding from Central Government was needed.

SUMMARY OF VIEWS FROM INDUSTRY BODIES AND INDIVIDUAL BUSINESSES

Welcome national framework and this initiative.
AMU, CBI, BRC, IRC, OTE

Welcome priority given to standards to encourage fair and consistent enforcement and service provision .
YCC, Camelot, AMU, ASDA, OTE

Welcome emphasis on increased dialogue between TSAs and business community and educating business to improve compliance.
BRC, YCC, AMU

Enforcement. Most respondents suggested to some degree or other ways of strengthening efforts to ensure greater consistency in interpretation and enforcement on the part of TS bodies with regard to fair trading and consumer protection generally.  Several respondents including CBI and BRC felt there needed to be more emphasis on standardising the application of the Home Authority principle, the Enforcement Concordat and the Code for Crown prosecutors.  ASDA suggested measuring the speed of referrals to the Home Authority.  
CBI, BRC, YCC, AMU, ASDA

Several respondents thought there should be some measurement of formal enforcement activity to provide insight into different authority approaches.  BRC suggested measuring the outcomes of business visits to promote compliance and prevent prosecutions.
BRC, ASDA, FISA

Government should consider including some specific standards in relation to anti-piracy and age restricted sales test purchasing.
Alliance, RoSPA, Camelot

There were several concerns that without proper resourcing and staffing of the Trading Standards service, the Performance Framework would be undermined.  Better funding from Central Government was needed.  ASDA suggested a regional or national structure for Trading Standards services should be considered.
CBI, Alliance, IRC, ASDA, AMU

Greater concentration and sharing of expertise and experience among TS authorities and better education and coordination of individual TSOs was needed.
YCC

COMMENTS BY INDUSTRY/BUSINESS

CBI - Welcome aims of the package, in particular emphasis on prevention rather than policing, providing education and advice, dialogue with Business .

Proposals provide opportunity to do more to promote shift in enforcement culture along lines of principles of good enforcement.

Would like more emphasis on Enforcement Concordat and Home Authority principle and making these effective.  

Clear guidance on standards needed to ensure they are capable of objective measurement and add real value.

Trading Standards need better resourcing from central government to improve cooperation between authorities and more consistent enforcement – package could do more to change attitude ands and encourage more constructive partnership approach.

British Retail Consortium - Welcome the package as  “important step in the right direction”.  

Would like to see more reference to the Home Authority Principle, Enforcement Concordat and Code for Crown Prosecutors.

Pleased to see the emphasis on working with business to improve compliance.  Want to see business visits and follow up outcomes recorded to help compliance and prevent prosecutions.  Somerset TS echoed the latter point.

Would like to see TSAs working through trade associations based locally to get guidance out to small traders - a sort of reversal of the HA principle.

Alliance against Counterfeiting and Piracy - Anti-piracy enforcement should be included as a national priority with its own standard.  An important fair and safe trading issue.

Trading Standards service should be funded by Central Government.

Association of Master Upholsterers - LAs should be bound to communicate with neighbour authorities where HA principle applies and the view of the Home Authority should be binding on all other authorities.

TS should be charged with providing and promoting consumer advice, and assist parties in resolving disputes.

Welcome better cooperation between enforcement bodies and partnership schemes with business.  Education programmes e.g. seminars should be coordinated to reflect national policy so that advice given is accurate and accepted by all authorities.

Independent Retailers Confederation - In principle welcome the proposals.

Concerned about the resources needed to deliver the plan and that TSDs will continue to be underfunded.

More guidance needed on priorities for Trading Standards and more needs to be done to find best ways of helping business comply with law.

Organisation for Timeshare In Europe (OTE) - DTI has identified most appropriate priorities for ensuring consumer protection and for maintaining and developing successful business.  

Welcome the proposed performance package as a set of measures that, if implemented effectively, will benefit consumers and traders alike.

Would like to see better understanding of industry, especially timeshare industry amongst TS – prepared to work with service at national level.  

Asda - Missed opportunity to set out to norm the existing patchy and resource inhibited service – alternatives for a regional or national structure should at least be considered.

Sampling and inspection activity should take account of internal business self assessment arrangements (especially where agreed with TS service / HA). 

Speed of referrals to HA should be measured.

Some measurement of formal enforcement activity should be included to provide insight into different authority approaches.

Camelot

Would welcome the test purchasing of all age-restricted products including The National Lottery to be considered a core function of the SDP.  To ensure standardisation between authorities and provide a consistent and fair approach to National Lottery retailers.

SUMMARY OF VIEWS FROM CONSUMER ORGANISATIONS

Consumer groups welcomed the proposals overall. 

The scheme would need to be reviewed annually and evaluated in the longer term.  More guidance for TSDs on priorities was needed and these should be reviewed annually.

Performance indicators would need to develop to focus on quality of outcomes against measures in the plan.  Measures of reducing consumer detriment, effectiveness of consumer advice, staff qualified to give consumer advice, access and cost should be developed.

Plans and performance results should be made public and brought to the attention of local advice agencies.

RoSPA wanted to see greater emphasis given to product safety within the package and made eight recommendations for doing this.

COMMENTS OF CONSUMER GROUPS

National Consumer Council - Support the package believing it should be published and made available to consumers.  More guidance needed on monitoring the needs of consumers.  Plans should include information on specific programmes of action so consumers are aware.  Minimum standards or at least illustrations of good practice would be useful.

Welcome the inclusion of advice and education in the plan, variation in the quality of advice given being a particular finding of the “Measure for Measure” report.

Would like to see TSDs given more guidance on priorities.  Priorities should be reviewed annually in consultation with OFT, NCC, NACAB, LACOTS and others. 

Performance indicators need to develop to measure progress on the activities in the plan and should focus on quality of outcomes and their impact on consumers.  There needs to be more transparency on the indicators.

NCC - would like to see proposals for ongoing evaluation of the scheme which will be crucial to its success.

RoSPA - would like to see a higher priority given to product safety and law enforcement within the package to give consumers and reputable traders the confidence that their interests will be promoted.  They cite the Audit Commission finding that there were inconsistencies in approach and gaps in enforcement in relation to product testing.  

RoSPA make eight recommendations in total, emphasising the need for formal surveillance programmes for TSAs and quality assurance schemes for manufacturers.  They also recommend making results of enforcement work available to the public, better training of TSOs, better risk assessment, and more consumer education.  In seeking a standard on anti piracy measures, the Alliance against Counterfeiting and Piracy pointed out that this was also a safety issue.

National Association of Citizens’ Advice Bureaux - Welcome scope of the consultation proposals.

Would like to see measures of effectiveness of Trading Standards in reducing consumer detriment over time.

Would like to see more detailed commitment to working with other agencies such as CABx.

Performance Indicators need to develop. Better measures of effectiveness of consumer advice, access and cost – effectiveness are needed.

Would like to see statutory underpinning.

Plans should be based on evidence of consumer experiences and should require Trading Standards to inform business about their powers.

Findings and outcomes of inspection need to be transparent. 

Local plans should be sent to other local advice agencies and displayed in council offices.

Institute of Consumer Affairs - Support the package which will provide a good framework for a modern Trading Standards service in line with Best Value principles.  ICA felt that the package identified the right priorities for building confident and successful/knowledgeable businesses and consumers.  ICA suggested that in measuring qualifications of staff, the package should measure the number of staff qualified to give consumer advice to the Community Legal Quality Mark definition and standard.

LOCAL AUTHORITIES

SWERCOTS - welcome the package in principle.  Concerned about competing priorities and absence of resources.  Concerned that services cannot compete equally in bidding process – the better resourced authorities are better equipped to bid.  

Swindon and Sutton - welcome proposals.  Swindon concerned about period of unprecedented change for TS service without additional resources. 

Devon - welcomes the proposal.  Performance monitoring report should encompass all the reporting requirements of Trading Standards.  Importance of tailoring enforcement to meet local demands is noted within the package, however if it is not to divert resources towards minimum requirements, emphasis needs to be away from input targets towards output targets.

Stoke - noted a need to align with the FSA food plan.

RESPONDENTS

Industry Bodies  

Alliance Against Counterfeiting and Piracy
Asda
Association of Master Upholsterers (and for British Furniture Manufacturers Assoc)
British Retail Consortium
CBI
Camelot (Operator of the National Lottery)
Finance Industry Standards Association
Independent Retailers Confederation
Organisation for Timeshare In Europe (OTE)
Yes Car Credit

Consumer Groups

Institute of Consumer Affairs
National Association of Citizens’ Advice Bureaux
National Consumer Council
Royal Society for the Prevention of Accidents

Local Authorities

Swindon Borough Council Trading Standards  
Stoke On Trent Trading Standards
Somerset County Council, Trading Standards
South West Regional Co-Ordination Of Trading Standards (SWERCOTS)
Devon County Council Trading Standard Service
Sutton, London Borough, Trading Standards

End

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