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Government consults on reforms to consumer protection law

15-November-2021
15-November-2021 17:26
in General
by Admin

Government consults on reforms to consumer protection law

On 20 July 2021 the government published long awaited proposals for reforms to consumer law, many of which were first suggested in a 2018 Green Paper. Included are proposed changes to:

 

  • Protect consumers from subscription traps, for example by requiring that auto-renewal should always be an opt-in choice, and from fake reviews, by introducing relevant new practices which are always unfair under the Consumer Protection from Unfair Trading Regulations 2008 (SI 2008/1277) (CPUT).
  • Prevent negative behavioural nudges (sludges) in particular by changes to CPUT to address drip pricing and undisclosed paid-for advertising and to protect consumers from losing advance payments on trader insolvency, including by secondary legislation under the Consumer Rights Act 2015.
  • Reform the civil consumer enforcement powers of the Competition and Markets Authority (CMA) enabling the CMA to take action without going to court and to change the way undertakings given to the CMA are enforced.
  • Introduce fines for failing to cooperate with a CMA investigation or comply with an undertaking and for infringements of consumer protection law. For infringements fines could be up to 10% of global turnover.
  • Strengthen consumer alternative dispute resolution (ADR) and widen its scope, including by halving the period regulated businesses have to resolve complaints before a consumer can request ADR, requiring that all ADR providers be accredited and making the use of ADR compulsory in the motor vehicle and home improvement sectors.

 

The government also asks whether it should change the UK’s collective redress regime to make it easier to gather many individual claims together into a single lawsuit, how it can improve business awareness of consumer protection law and how Local Authority Trading Standards can better work with the national trading standards bodies. Suggestions for how to remove red tape for businesses while maintaining consumer protection are also sought. The consultation closes on 1 October 2021.