Mary McKeown

1. Mary McKeown Trading Standards Service

2. Part of central government DETI Approximately 40 officers for whole of Northern Ireland Offices in Armagh, Belfast, Ballymena, Enniskillen and Londonderry Structure

3. Weight and measures legislation goes back centuries……….. 20th Century saw the rise in consumerism 1960s onwards has seen the implementation of legislation to protect consumers 1970s saw the start of legislation from Europe Trading Standards Service

4. Our aim is to promote a fair trading environment in which consumers are protected against malpractice, and responsible business activity is actively encouraged. Role of Trading Standards Service

5. Enforce the criminal provisions of Consumer Protection Legislation Investigate any possible breaches Provide advice to businesses Provide advice to consumers Prosecute where necessary How?

6. We check That you get a full pint of beer That your drink is not watered down That your cotton t-shirt is cotton That you get the amount of fuel you pay for at the pump That your jewellery is sterling silver That the mileage on your car is genuine Overview

7. While enforcing legislation is important Trading Standards carries out many other roles:- Media work Fund debt advisers Talks to schools, business, community groups, vulnerable groups Work with other agencies such as Police, Customs and Excise, Citizens Advice and independent advice centres Consumerline Other activities

8. Jim Frazer Trading Standards Service

9. Primary source of protection for consumers of credit Aims to protect against any inequality between the consumer and finance Co. Provides for ‘truth in lending’ Provides for criminal offences Consumer Credit Act 1974

10. ‘a cash loan or any other form of financial accommodation’ For individuals Total amount payable does not exceed £25,000.00 Is not one of the exemptions under the Act What is credit?

11. Holder of licence must be fit person to engage in activities covered by the licence Consumer hire business Credit brokerage Debt-adjusting Debt-counselling Debt-collecting Credit Reference Agency Consumer Credit Licence

12. Perhaps the most effective legal provision for protecting the consumer! Section 75 Consumer Credit Act 1974 Allows for joint or severable liability between supplier and creditor where there has been a breach of contract Goods or services must have cost more than £100 or less than £30,000 Includes transactions made abroad Equal Liability

13. A Court can re-open any credit agreement it considers grossly extortionate Factors it will consider:- Interest rates at the time Age Experience Capacity and health of debtor Any other relevant circumstances Extortionate Credit

14. Provides protection in the form of a cooling off period for consumers Regulated agreement Antecedent negotiations In presence of debtor Signed off trade premises Cancellable Agreements

15. Once consumer receives second copy of agreement or cancellation notice through the post:- 5 days following the day agreement or cancellation received You must cancel in writing Goods returned and payments handed back Cooling-off period

16. No face to face contact Customer unable to examine the goods Enhanced rights for consumer Short period for withdrawal Distance Selling Regulations 2000

17. Internet Text Messaging Phone calls Fax Mail order catalogues Interactive TV Distance Selling

18. MUST INCLUDE:- Business name Business Address (if seeking payment in advance) Description of goods or services Full price (including any taxes) Details of delivery costs Details of how payment can be made Arrangements for delivery and when customers can expect goods to be delivered Information on the right to cancel Pre – Contract Information

19. In writing:- post, fax, email If contract by phone information must be given in writing If information held in a catalogue or advertisement no requirement to send this durable form Must be given for goods at the latest when they are delivered and services at latest during performance Durable Form

20. 7 working days from the day after goods received or receive notice of cancellation, whichever is later For services 7 working days from the day after the customer agreed to go ahead with contract or received notice, whichever is later Cancellation Provisions

21. Deadline extended 3 months and 7 working days from the day after the customer receives goods or the service contract is concluded If no cancellation provisions

22. No!The provisions do not apply to:- Goods made to the customers own specification Goods that cannot be returned Goods or services where the price depends on fluctuations in the financial market Betting/lottery services Can the customer always cancel?

23. In writing or durable medium Letter Fax Email NOT BY A PHONE CALL How to cancel

24. Trading Standards Service Bronagh Deery Trading Standards Officer

25. Came into force in May 2008 Implement the EU’s Unfair Commercial Practices Directive Primary objective is to; “harmonise consumer protection law across the EU by clamping down on unfair sales and marketing practices between businesses and consumers.” The Consumer Protection from Unfair Trading Regulations 2008

26. Business-to-consumer transactions Conduct before, during and after the contract is made Replace large parts of existing consumer protection legislation Represent the biggest change in consumer protection legislation for 40 years What do the Regulations apply to?

27. Clamp down on unfair commercial practices Protect consumers and honest businesses Replace some existing legislation with general ban on unfair trading Contain specific prohibitions relating to misleading actions and misleading omissions about products or services Stop aggressive selling techniques What do the Regulations do?

28. Force traders to act in a manner consistent with the reasonable expectations of the average consumer Enable consumers to make free and informed purchasing decisions Clamp down on traders who use underhand tactics to gain an advantage Create a level playing field for traders Benefits?

29. General prohibition on conduct below an expected professional level Misleading practices – actions and omissions Aggressive sales techniques that use harassment, coercion or undue influence 31 specific banned practices What do the new Regs cover?

30. States that a commercial practice will be unfair if: - it contravenes the requirements of professional diligence (honest practice) AND - it materially distorts (or is likely to) the economic behaviour of consumers with regard to a product General prohibition – general duty not to trade unfairly

31. Professional diligence - standard of skill and care that is reasonably expected of a trader in that trader’s field of activity Acts as a safety net – includes practices that do not fall into specific prohibitions of misleading and aggressive practices and 31 specific banned practices

32. A commercial practice is a misleading action if: It contains false information relating to a list of specified matters, or if its overall presentation is likely to deceive consumers, and; It causes consumers to take a transactional decision they would not otherwise have taken Misleading Action

33. Can relate to main characteristics of product, price, the need for a service, replacement or repair, approval of external body, trader’s qualifications, date of manufacture, after-sales assistance, fitness for purpose, specification, mileage, full service history, origin of product Specified Matters

34. Car odometer reading 50,000 miles when it has in fact travelled 150,000 miles Price indication on product stating £10 but charged £20 at till Trader claiming to be approved by Trading Standards Service garage stating that a car needs a particular part replaced Product stating “made in Italy” when it has not Common examples of misleading actions

35. Price indicated must be actual price consumers should pay Non-optional extras must be included in price (no hidden extras) Prices in advertisements must be same as price displayed (advertised price should be valid until next edition of publication) VAT inclusive Misleading Prices

36. Misleading Prices Sale £9999 £8999 NOW ONLY £8499 Price comparisons in general • Previous higher price and new lower price should be shown • Most recent price available for 28 consecutive days • Show intervening prices • CoP for Traders on Price Indications

37. A commercial practice is a misleading omission if: It omits or hides material information, or gives it in an unclear, unintelligible or untimely manner, and; It causes consumers to take a transactional decision that they would not otherwise have taken Misleading Omissions

38. Information that consumers need to have in order to make an informed decision Will depend on circumstances – what product is and where and how it is offered for sale May only need small amount of information for simple products and more information for complex products Material information

39. Failing to display prices of food and drink in restaurants prior to consumers ordering Failure to display price of car parking at point before consumers enter car park Failing to indicate that a contract must run for a minimum period Failure to indicate that goods are second hand Failure to inform consumer that vehicle has been in a accident Common examples of misleading omissions

40. A commercial practice is aggressive if: It significantly impairs consumers freedom of choice in relation to the product through the use of harassment, coercion or undue influence, and; It causes the consumer to take a transactional decision that they would not have otherwise taken Aggressive Practices

41. Mechanic, who has done more work to car than agreed, refusing to give the car back until he has been paid Trader selling credit who pressurises an existing borrower to take out an additional loan Trader who refuses to leave a consumer’s house until consumer signs contract Debt collector who harasses debtor by contacting them at unreasonable hours and at unreasonable locations (such as work) Common examples of aggressive practices

42. Blacklist of 31 practices that are banned at all times as they are deemed to be so serious (see fact sheet for full list) No need for consumer – no requirement to prove that consumer took a different transactional decision Banned Practices

43. Falsely claiming a trader is “CORGI” registered or a member of “FMB” Falsely claiming that a trader is about to close down when they have no intention of closing Falsely claiming that a product can cure illness A car trader giving the impression that they are a private seller Falsely creating the impression that the consumer has won a prize Common examples of banned practices

44. The regulations are enforced by Trading Standards Service and the OFT Penalties On conviction a person is liable to; Magistrates Court a fine up to £5,000 Crown Court an unlimited fine and/or 2 years imprisonment Enforcement and Penalties

45. Bronagh Deery Email: Bronagh.Deery@detini.gov.uk Consumerline: 0845 600 62 62 Thank you