Aggressive or misleading trading acts to be outlawed
Proposals to tackle scams, rip-offs, and misleading and aggressive trading practices have been put forward by the Law Commission and Scottish Law Commission.
Common unscrupulous practices range from demands for parking fines that were never owed to fake “wins” and “free” goods that are not free.
Unscrupulous doorstep traders selling mobility aids to housebound people were found to have inflated prices by as much as 400%.
The commissioners say that, while many high-pressure sales tactics are a criminal offence, there is no clear route to redress. Whether duped, intimidated or misled, consumers have little chance of either getting their money back or stopping the wrongful practice.
In its consultation paper, Consumer Redress for Misleading and Aggressive Practices, published this week, the commissioners recommend a new Consumer Act which would cover aggressive or misleading trading acts between businesses and consumers.
The proposed Act would give consumers the right to: “unwind” a transaction, return the item and get a refund within three months; claim a discount where unwinding is not possible; and claim extra losses, such as distress and inconvenience (accompanied by a defence of due diligence).
Law Commissioner, David Hertzell, said: “When we buy goods that are faulty, we know we can get our money back. But when we’re misled about a product or fall victim to high-pressured sales tactics or aggressive demands for money, it’s unclear what remedies are available to us. The Law Commission believes consumers should have a clear right to redress for misleading and aggressive commercial practices.”
He added: “Simplifying the law will give more confidence to consumers and help drive rogue traders out of the market place, where currently they damage the reputation and livelihood of good, honest businesses.”
The consultation closes on 12 July 2011.
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