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More protection for consumers in bid to end 'rip-off Britain'
Jonathan Prynn, Consumer Affairs Editor18 Feb 2008
The Government is backing a new anti-"rip-off Britain" offensive against shops and websites that exploit shoppers.
Ministers want to overhaul consumer protection laws and allow people to claim compensation if they fall victim to offences such as price-fixing.
Britain has a reputation for some of the highest prices in the world, with global companies sometimes referring to the UK as "Treasure Island" because profit margins are higher than in many other countries.
The most radical suggestion being considered by ministers is a "money back" law that would give consumers the right to reclaim sums as small as a few pounds without having to resort to lawyers.
Former trade secretary Stephen Byers launched the original "rip-off Britain" bandwagon in the early days of the New Labour government almost a decade ago.
It led to tougher powers for the Office of Fair Trading and Competition Commission but was criticised as "Labour spin" for not delivering lower prices.
Now ministers at the Department for Business, Enterprise and Regulatory Reform - led by Business Secretary John Hutton - believe the huge growth in internet shopping means a root-andbranch review of consumer law is needed.
Asimilar pan-European review is being carried out in Brussels.
The UK proposals include:
• A new law based on Danish legislation that would allow consumers to " piggyback" on legal actions brought against price-fixing cartels. This "private action" system is seen as a less cumbersome method of redress than hugely expensive US-style "class actions". People who could show they had been ripped off using proof of purchase would be able to sue collectively to get their money back.
• A new "super-Ombudsman" to represent the interests of consumers.
• A consumer rights card for wallets and purses enshrining five or six basic principles of consumer protection. Shoppers could refer to it when they were about to pay for goods in shops or online.
• A big tidying-up of the "plethora" of sometimes contradictory consumer laws. For example, some laws say consumers have 14 days to return a product, others say the limit is seven days.
One senior government source said: "It is not so much a feeling that consumers are under-protected, it's more that the protection is in place but not enough people know what it is and how to use it.
"Also, when bodies do spot that consumers are being ripped off, it is quite difficult to get redress."
A consultation will be launched later this month with announcements on which proposals are to be taken forward in summer.
The move has been welcomed by consumer groups, although there are concerns the review could be used to dilute protection for shoppers.
Carl Belgrove, economist at the National Consumer Council, said: "Any simplification must not involve a watering down of the protection consumers already have."
Reader views (5)
What about rip off on the trains and tube. How can 1 stop be worth £4.00 on the tube or a single journey in zone 1 be again £4.00? London boosts the biggest salaries but people forget that London is the biggest rip-off part of the country.
- Frank Turner, London, 19/02/2008 15:31
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So the government want to fight rip-off Britain does it! It can start with itself and the local council mafia. They are the main rip off artists in this country. We can easily choose another private company or Bank but try not paying the council tax and you get thrown in jail choose how old you are. This is yet more spin and means nothing.
- Kenherts, Hertford, 19/02/2008 15:08
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Well said Mike Lit!
- Brian, Wiltshire, 19/02/2008 12:31
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A great initiative. May I suggest it be extended to provide rip-off protection against banks, oil companies, utility providers, and local councils. Oh yeah, and central government. Job done.
- Saja, London, 19/02/2008 03:38
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They could start with protecting people from a certain on-line auction site which promises to protect customers but completely fails to deliver.
- Mike Lit, Peckham, 18/02/2008 13:36
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