Why Consumer Policy?

The Government is committed to ensuring consumers get a fair deal, value for money, safe and high quality products, and greater choice. This is not only good for consumers, it is also good for British business.

Business needs demanding, confident consumers who encourage higher standards and innovation. It needs effective enforcement of consumer standards, to drive out
the rogues who compete unfairly.

The Government has already taken measures to protect consumers and ensure they get a good deal. Now it is taking further action to strengthen safeguards for consumers and ensure greater choice and better prices through effective competition.

The Government also wants to see a stronger consumer voice, both here and in Europe, helping to shape policy.

What the Government is Doing

In July 1999 the Government published a consumer white paper, "Modern markets: confident consumers" which set out how it would achieve a fair deal for consumers through, better information, easier ways to put things right, and stopping cheats.

Consumer White Paper "Modern Markets: Confident Consumers".

In its 2001 election manifesto the Government gave a commitment to toughen the laws on rogue traders, unfair terms in contracts, and loan sharks.

In July 2001 the Government announced a major review of the UK's consumer credit law. As well as taking forward the recommendations of a Task Force on over indebtedness, the review is also intended to ensure that the law is relevant to the current credit market and that consumers are adequately protected against unfair and exploitative lending practices. The Government's plans include a crackdown on loan sharks, measures to encourage both lenders and borrowers to be more responsible and an end to vital information being hidden in small print.

The Enterprise Bill was introduced in Parliament in March 2002 and received Royal Assent on 7 November 2002. The Enterprise Act includes some key measures promised in the 1999 consumer white paper, such as improving the information available to consumers, promoting consumer interests in competition, modernising the enforcement of consumer protection legislation and improving the performance of enforcement bodies. The main consumer sections came into force on 20 June 2003.

Other action:

Tougher action against rogues

• Given the Consumer Association powers to take injunctions under the Unfair Terms in Consumer Contract Regulations, which has strengthened its position in discussions with individual lenders about mortgage terms.

• Introduced measures in the supply and sale of new cars and helped reduce prices. Since the Competition Commission report in April 2000 the price of new cars has fallen by nearly 10%. And on 15 May 2003 major car industry players pledged their commitment to achieving OFT approval for a new "Good Garage" Code.

Better enforcement

• Introduced a £30m Modernisation Fund in 2001 over three years (2001-2004), to raise the standards of consumer protection at local level. The money is helping to support a modern, joined up approach to enforcement by Trading Standards, improving Trading Standards performance and supporting initiatives to educate consumers and help honest business.

• Introduced in June 2001 the Stop Now Orders, giving Trading Standards departments and other named bodies the power to seek injunctions against traders who do not comply with a wide range of legislation intended to safeguard the interests of consumers.

• Through the Enterprise Act 2002 strengthened competition, providing greater choice, higher quality and better prices for consumers. And it will enable OFT, Trading Standards and other designated enforcers to obtain 'Stop Now Orders' against a wider range of illegal activities which harm the economic interests of consumers than at present.

Helping consumers get better information.

• Has already brought in new pricing rules, improving the visibility of prices and making it easier for people to compare them for different goods.

• The Government has changed the rules on how the advertised annual percentage rates for mortgages are calculated, to make clearer the true costs of low-start mortgages.

• Announced new funding of up to £30million over three years for (2001-2004), and is developing, a national consumer advice helpline.

• Through the Government's Modernisation Fund supporting the development of over 190 Consumer Support Networks These networks join up consumer advice and information services which have previously been fragmented, making it easier for consumers to get the information they need.

• The Government, in partnership with the finance industry, is funding a pilot telephone debt advice service National Debtline to test whether the majority of cases can be answered by phone. The pilot began in March 2002 and is now being evaluated.

• Introduced an award winning website, the Consumer Gateway which provides links to other internet sites offering quality consumer advice.

• Working to build consumer confidence in e-commerce,  DTI had launched publicity campaigns on safe internet shopping and commissioned research into consumers' internet and cross-border shopping habits and attitudes.

• Launched a Quality Mark initiative to develop a register of tradesmen who work in the domestic repair, maintenance and improvement sector, to give consumers access to independently inspected and approved builders, roofers, electricians and plumbers.

• Added a Consumers Guide to Scams to the DTI web site.

Consumer Safety

• Enhancing consumer safety by ensuring that consumer safety measures are clearly communicated and understood, and properly enforced. We achieve this by working closely with key partners in the field including business, enforcement agencies, the voluntary sector and other government departments. We seek to promote best practice through our Home Safety Network.

• Fund research to enhance the safety of products as well as local interventions through the Modernisation Fund. We contribute to the development of new and improved safety standards within the UK and Europe.

A stronger consumer voice

• Has set up new Consumer Councils for gas and electricity and postal services, and strengthened the remit and Board of the National Consumer Council.