CONSUMER PROTECTION
New rules for consumer protection and how it will affect the double glazing industry
A new law aimed at protecting consumers against rogue traders has come into force in the UK.
For the first time in UK law there will be a duty on all businesses not to trade unfairly. These new laws could have a dramatic effect on double-glazing companies, and how they go about the sales process.
There are 31 specific practices, which will now be banned, including outlawing aggressive sales tactics.
Aggressive Sales Techniques
The new legislation outlaws information, which, even if it is factually correct, deceives the average consumer into making a transaction he or she would not have taken otherwise.
As well as a duty for companies not to trade unfairly and to avoid misleading statements or omissions, there is also a duty on businesses not to conduct aggressive sales practices, such as harassment, coercion and undue influence.
For example, door-to-door salesmen will have to be careful not to be too persistent. If they continue in their pitch after a customer says no they could be committing an offence and be at risk of up to two years in prison.
This would tackle cases such as the pushy sales tactics pioneered by the double glazing industry in the 80’s and 90’s and still practiced by many double glazing companies today. This has to be great news for the long-term reputation of our industry if the law has an effect.
Fake testimonials
The wide-ranging nature of the regulations mean that they will also cover issues such as fake testimonials by “customers” giving favourable reviews of double glazing, conservatories or any other product.
“This brings in a new concept of fairness, a brave new world for businesses dealing with consumers and advertising,” said lawyer Philip Carnell of CMS Cameron McKenna.
“If marketing companies are going to try and be sneaky, that will now be a strictly liable criminal offence.”
Trading Standards officers will be policing the new regulations. They are likely to concentrate on the most prevalent complaints, so you would assume at least one of the bigger double-glazing companies will be looking at these new laws carefully!
David Sanders, lead officer for civil law at the Trading Standards Institute, said that the more serious cases were likely to be dealt with under criminal law.
This would mean maximum penalties of up to £5,000 for anyone found guilty in a magistrates’ court, or a fine of up to £5,000 and/or two years in prison in cases heard in a Crown Court.
But Mr Sanders had a word of caution for consumers expecting all con artists to face justice.
“We are a limited band of people and we are only going to investigate the most serious cases,” he said.
I sincerely hope that a few companies in the double-glazing industry are brought to task here, as high pressure sales tactics have blighted the public’s perception of double glazing for too long.
Flogs
There are also new laws on ‘flogging’!
Basically, firms have created ‘Fake Blogs’ by trying to con the consumer by pushing their own propaganda on websites while pretending to be the voice of the people.
Now, however, this kind of tactic has been ruled an unfair commercial practice by Brussels.
From 26 May, any UK firm breaking the rules may face prosecution, stiff fines and possibly even jail terms for its staff.
“This brings in a new concept of fairness, a brave new world for businesses dealing with consumers and advertising,” says lawyer Philip Carnell of CMS Cameron McKenna.
“If marketing companies are going to try and be sneaky, that will now be a strictly liable criminal offence.”
This also includes staff from companies creating false testimonials on consumer review websites. There are clear examples of double glazing companies already creating fake customer testimonials being posted online to even up any bad publicity on these sites. In the future they will have to play fairer - that’s if they care about the rules, that is!
Andy Millmore, a partner at London law firm Harbottle and Lewis specifically mentions the double glazing industry:
“For instance, if my aged grandmother lets in a double-glazing seller and he presses to make a sale, preying on the fact that she’s too polite to ask him to leave, that would now probably constitute an aggressive practice and be criminalised.”
The major problem will be that the people that are enforcing this law are trading standards officers. The chances of them having the wherewithal to police this are slim. The law is likely to be reserved for high-profile cases that annoy a lot of people.
The rewards of doing it and not being caught are huge. Let’s face it, the best kind of marketing is when you’re not aware you are being marketed to.
If it’s the sort of business that will take a risk and not worry about the customers that they trample on, then they may never be caught. But upstanding companies will know that they cannot market themselves online without being very clear about what they are doing.
