Keenan and Riches’BUSINESS LAW

Chapter 14Consumer protection

Association seeks to influence consumer protection
policy by lobbying Parliament or by representation on
other bodies in the UK and Europe.

Citizens’ Advice Bureaux (CABx)

These were first established in 1939 by the National
Council of Social Service. They deal with a wide range
of problems: employment rights, social security, land-
lord and tenant disputes, etc. Approximately 20 per cent
of the enquiries they deal with are consumer prob-
lems. They are funded by central government and local
authorities.

National Consumer Federation (NCF)

The NCF was established in 2001 following the amal-
gamation of the Consumer Congress and the National
Federation of Consumer Groups. It encourages and
co-ordinates the activities of the local consumer groups.

British Standards Institute (BSI)

The BSI was established in 1929. It sets standards,
dimensions and specifications for manufactured goods.
A ‘British Standard’ is a document which stipulates the
specifications, requirements for testing or measurements
with which a product must comply in order to be suited
for its intended purpose and work efficiently. Com-
pliance with such a standard is a matter of choice on the
part of the producer. However, in some cases compliance
is compulsory, e.g. crash helmets. A producer may apply
to the BSI for certification of his products, in which case
he may display a BSI kitemark on the product.

Other organisations

Trade associations

An important aspect of consumer protection is the
extent to which laws are supplemented by codes of prac-
tice drawn up by trade associations in consultation with
the Office of Fair Trading (discussed in more detail later
in this chapter).

Advertising Standards Authority (ASA)

The ASA was established in 1962 to provide independ-
ent supervision of the advertising industry’s system of
self-regulation through a monitoring programme and
investigation of complaints. The main instrument of
control is the British Code of Advertising Practice
(BCAP) which was published in 1961. It is kept under
continuous review and amendment by the Committee

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of Advertising Practice (CAP). The code applies to all

advertisements in newspapers, magazines, posters, bro-

chures and leaflets for the public, cinema, commercial

and viewdata services. The ASA and CAP also adminis-

ter the British Code of Sales Promotion Practice. Separate

systems operate in relation to broadcasting and cable

operations.

Professional bodies

The Law Society, for example, operates a compensation

fund for the victims of dishonest or insolvent solicitors

and requires compulsory insurance against negligence.

Ombudsmen

The financial sector has appointed a number of

‘ombudsmen’ to deal with complaints, e.g. insurance,

building societies, pensions, banking. The powers of

these ombudsmen vary from scheme to scheme, but,

as a minimum, they provide a channel for complaints

and, at best, they can require an organisation to pay

compensation.

Different approaches to consumer

protection

The law on consumer protection has been developed on

a piecemeal basis over many years and has a variety of

sources: EU regulations and directives, statutes, minis-

terial regulations and case law. Over the years differ-

ent approaches have been taken, causing problems of

overlap and complexity. The four main approaches are:

providing civil remedies, imposing criminal liability,

administrative controls, and business self-regulation.

Providing civil remedies

An individual consumer may be able to bring a civil

action against a trader for a breach of contract or for liab-

ility in tort, e.g. negligence. The liability of a supplier of

goods and services for breach of contract was examined

in Chapter 10 , and his liability in tort was considered

in Chapter 11.

Imposing criminal liability

Certain types of trading activities are deemed to be so

harmful that the law imposes criminal sanctions on the