Scotland's Economy
Protecting consumer rights
August 13, 2013 by No Comments | Category Economy
- Richard Lloyd, Executive Director, Which?
We welcome the Scottish Government’s proposals contained in the paper Consumer Protection and Representation in an Independent Scotland: Options to create a regulatory landscape that puts consumers at its heart. We understand the desire for a simpler, more focused system but whatever form it ultimately takes, we want to see regulators that are proactive and that put consumers first.
For the changes to be effective, consumers must be taken seriously, and regulators should be given the powers they need to stand up to rogue businesses and act on unfair markets.
One particularly important dimension will be to empower consumers to take responsibility to help themselves.
We fully support plans for a single consumer ombudsman to deal with complaints right across the economy. The current UK wide system leaves consumers without the option of alternative dispute resolution in certain sectors, like travel.
An effective redress mechanism could help to restore consumer trust in markets, which would potentially drive up business standards and increase competition. It’s positive for businesses, markets and the economy if consumers feel well protected and are confident that they’ll be treated fairly.
A consumer ombudsman could also help to identify systemic failures that can be fixed before widespread mis-selling or other problems take root. This could mean we avoid seeing huge scandals like Payment Protection Insurance (PPI). We would like to see additional powers to allow regulators or consumer groups to take collective action when many people have been affected by the same problem.
We welcome the way the Scottish Government is consulting with consumers in developing their proposals and we look forward to continuing to work closely with the Cabinet Secretary for Finance, Employment and Sustainable Growth.
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