07 Dec 2000
Scottish Secretary John Reid today told rogue traders that the Government will take speedy and effective action against 'cowboys' who do not comply with consumer protection legislation.
Describing proposals to give consumer protection bodies in Scotland new powers to combat cowboy traders as ‘another important step in the campaign to improve consumer rights and protect people from unscupulous traders’ John Reid said:
"This Government is determined to get tough with rip-off merchants who think that they can make a quick profit at the expense of innocent consumers.
"New regulations to be introduced by the government early next year as part of a raft of measures to combat rogue traders will give trading standards officers, and the Office of Fair Trading a straightforward method of protecting the interests of Scottish consumers across a wide range of areas.
"This will include problems such as unscrupulous car dealers who don’t just stretch the truth about the cars they are selling, but twist it out of all recognition. It will also cover rogue sales representatives who target vulnerable consumers and pressurise them into buying goods or services that they don’t even want, at inflated prices. While thankfully it is only the minority of consumers who suffer such problems, we are nevertheless determined to do what we can to help prevent such behaviour.
"Scotland's legitimate businesses have nothing to fear from this move. Indeed these measures will assure such businesses that they will not be undermined by competitors who disregard the law.
"I am particularly pleased that there will be reciprocal arrangements within the EU so that rogue traders in one Member State can be subject to the rulings of enforcement bodies in another Member State. This can only increase consumers’ confidence in the European market, making it easier for them to enjoy the benefits of cross-border shopping."
NOTES TO NEWS EDITORS
1. The proposed regulations will give effect to European Directive 98/27/EC on injunctions for the protection of consumers’ interest, which implements eleven EC directives covering the following areas:
2. Named bodies will be able to apply to the courts for "Stop Now Orders" to stop traders from infringing this legislation, where the infringement harms the collective interests of consumers. Suchnamed bodies will include the Director General of Fair Trading, trading standards departments, statutory regulators, consumer bodies from other Member States named for this purpose in the Official Journal of the European Communities, and private consumer organisations which meet objective criteria. A schedule to the regulations will set out the criteria against which applications for named body status will be assessed. To meet them, consumer bodies will need to demonstrate that they would take an independent and impartial approach to the use of their powers, and act in the interests of consumers.
3. The Government will also establish effective arrangements for co-ordination and consultation between named enforcement bodies to ensure that businesses do not face a multiplicity of actions on the same or related issues, and that enforcement bodies’ efforts are not duplicated.
4. Failure to comply with a Stop Now Order would be treated as contempt of court, punishable by fines, or even imprisonment. These Orders will act as an additional enforcement mechanism which will work alongside existing sanctions such criminal prosecutions where these are already provided for in legislation.