New consumer protection goes live

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Economy - News
Tuesday, 27 May 2008

New rules that require all businesses to treat customers fairly have come into force on Monday.

The EU Unfair Commercial Practices Directive (UCPD) - as implemented by BERR - came into force in the UK on 26 May 2008.

The move follows 20 years of campaigning by the National Consumer Council (NCC), and other consumer bodies.

The new Consumer Protection Regulations places a duty on businesses not to trade unfairly by omitting important information or making misleading statements.

The Unfair Consumer Practice Directive bans 31 specific practices in all circumstances.

Carl Belgrove, senior policy Advocate at the NCC, said that the new laws represented a big boost to consumer protection, particularly for vulnerable people who are targeted by rogue traders.

"The one thing missing is a way for consumers to claim compensation when businesses act unfairly and we hope that will be remedied soon," he added.

In Ireland, the same legislation has included a civil redress mechanism that enables consumers to take legal action when unfair commercial practices have been exposed.

In the UK, the Department for Business, Enterprise and Regulatory Reform (BERR) has asked the Law Commission to look into the possibility of introducing a civil redress mechanism, but their work is not expected to start until 2010 at the earliest.

The National Consumer Council urged BERR and the Law Commission to start this review as soon as possible.

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