Member Article

Wronged consumers given improved access to justice

Businesses that break consumer law could be subject to new court powers that make justice more accessible for wronged customers.

A consultation entitled “Civil Enforcement Remedies” was announced on Monday, to potentially reform the way authorities, such as Trading Standards, handle claims made by consumers.

Civil courts will be given enhanced powers to enforce consumer law and good practice regulations on businesses, reimburse customers and in turn, improve consumer confidence.

Businesses under fire could be made to launch an investigation into how well their company adheres to consumer law, while the consultation may also result in a more transparent and efficient complaints system.

The Consumer Affairs Minister, Jo Swinson, who is a the liberal democrat MP for East Dunbartonshire, said free access to justice was an essential right for consumers.

She said: “With these proposals, when a business has infringed your rights as a consumer the court will make sure they reverse the damage and give consumers their money back.

“This will put the balance back in the system, and give consumers more power to exercise their choices confidently.”

Currently, when a business is prosecuted or an injunction order is being sought against them, the consumer does not receive direct compensation, but must pay legal bills to receive any money back.

New measures propose that wronged consumers will receive money back from a business that has lost them money through overpayment or mis-selling.

Companies will also have to investigate flaws in the business that may have caused the original customer complaint.

Changes to the civil court system will also prevent firms from making superficial changes that seem to remedy problems, but do not address the root of the issue.

Ms Swinson commented further: “Too often consumers are short changed as the result of criminal prosecutions under consumer law: currently a business is condemned and fined, but nothing is done to repay the money lost by the customer.

“Instead, customers are forced to foot the bill for costly and time consuming legal action to get their money back.”

She called for greater balance in the legal system for consumers to empower them to make informed and secure choices.Richard Lloyd, the Director of consumer advisory firm Which? commented: “These new powers should help ensure consumers are no longer left out of pocket if they have been ripped off or are the victims of mis-selling.

“We hope these proposals will spread better practice among businesses and help boost consumer confidence, which is vital to our economic recovery.

“We will want to see the authorities, including Trading Standards, using these powers to get consumers a better deal.”

This was posted in Bdaily's Members' News section by Miranda Dobson .