Source · Select Committees · Business and Trade Committee
Recommendation 15
15
Not Addressed
Paragraph: 120
Weak competition and consumer policy will lead to detriment for consumers and worse economic outcomes,...
Recommendation
Weak competition and consumer policy will lead to detriment for consumers and worse economic outcomes, particularly for the most vulnerable in society. We 50 Post-pandemic economic growth: state aid and post-Brexit competition policy encourage Ministers to build upon existing UK consumer law and to refrain from fundamental changes to it. Whilst UK consumer law is comprehensive, consumers still have low levels of understanding of their rights and enforcement is weak. We therefore call on Ministers to give consumer enforcement agencies additional powers and resources to improve their enforcement of consumer rights, in the interests of consumers and competition in markets. We also encourage the CMA to formally collaborate with consumer and competition law agencies in regulated sectors to reduce consumer detriment.
Government response summary AI-generated
Departments will prepare their responses to the REUL Bill individually and keep the Parliamentary Business and Legislation Committee advised. Updated guidance will be developed and shared at the appropriate moment, and the Government will give the BEIS Select Committee early notice of the intended use of LROs as part of the REUL reform programme where relevant.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
120
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
The Government agrees with the Committee’s assessment of consumer protection law, and plans to strengthen it through the forthcoming Digital Markets, Competition and Consumer Bill. To ensure consumers are given information about their rights, BEIS provides £11.4 million per annum in funding to Citizens Advice to deliver the Citizens Advice consumer service in addition to the £22.3 million funding for its core services. The consumer service provides advice on general consumer issues (and specific advice for energy and postal consumers) across England and Wales. The service is delivered by telephone and online. General consumer advice includes pre-shopping tips, information on consumer rights, advice on how to solve specific problems, and referrals to partners for additional help or enforcement action and help and information about Alternate Dispute Resolution. BEIS also supports the delivery of the annual Scams Awareness and National Consumer Week 6 Post pandemic economic growth: State aid and post-Brexit competition policy: Government Response campaigns which aim to raise awareness of consumer rights, empower consumers to take action and, in the case of scams, report them. Delivery of consumer advice is devolved to the Scottish Government and Northern Ireland Assembly. National Trading Standards (NTS) and Trading Standards Scotland (TSS) receive funding of £12 million and £1.2 million per year respectively from BEIS to underpin the consumer rights framework by enforcing against the highest priority breaches of the law. Between 2014 and 2021, NTS tackled over £1 billion in consumer and business detriment for a core spend of £91.5 million, equating to £11 impact for every £1 spent. TSS has tackled £74 million of consumer and business detriment since 2014 for a £8.7 million spend, equating to £9 impact for every £1 spent.
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