Keenan and Riches’BUSINESS LAW

2 The Business Advertisements (Disclosure) Order

1977.This order requires business sellers of goods to

make it clear in their advertisements directed at con-

sumers that they are traders. The fact can be made

apparent by the content of the advertisement, its format

or size.

Consumer Focus (formerly the National

Consumer Council)

The National Consumer Council was set up in 1975 to

represent consumer interests in dealings with the govern-

ment, local authorities, the Office of Fair Trading and

trade bodies. It also advised on consumer-protection

policy through the publication of reports and making

representations to relevant bodies. Following the Con-

sumers, Estate Agents and Redress Act 2007, the Welsh,

Scottish and National Consumer Councils merged with

Postwatch and Energywatch to create Consumer Focus.

Consumer Focus was established on 1 October 2008. It

is sponsored by the government.

Public services and privatised

industries

Newly privatised, large-scale suppliers of goods and ser-

vices, such as British Gas, BT, the water and electricity

supply companies, have found themselves in a position

of having a monopoly or near-monopoly of supply. It

has, therefore, been thought necessary to regulate their

operations by appointing statutory ‘regulators’, and, in

some cases, formalising consumer representation in the

industry (see Fig 14.1). The duties of the regulators may

include promoting competition and protecting the con-

sumer in relation to pricing and terms of supply.

In 1991 the government launched its Citizens’ Charter

initiative for public services. The aim of the initiative

is to raise standards in public services such as health,

education and the courts, by producing charters which

set out what kind of services consumers are entitled to

expect and how they can complain if things go wrong.

Voluntary organisations

Consumers’ Association

The Consumers’ Association was established in 1957.

The inspiration for its creation came from the USA. It

has five main aims:

1 to encourage people to spend their money wisely;

2 to reduce the inequality between the shopper and the

manufacturer or supplier;

3 to improve the quality of British goods, creating more

discriminating purchasers;

4 to tackle the growing complaints about unsatisfactory

goods;

5 to combat the power of advertising by providing

information so the consumer can choose goods on

more rational grounds.

The main aim of the Consumers’ Association is to

provide information to the consumer about products

and services by testing them thoroughly and giving the

subscriber an independent appraisal through the medium

of its magazine Which?In addition, the Consumers’

Part 3Business transactions

406

Industry Regulator Office Consumer representation

Communications Office of Communications OFCOM Ofcom Consumer Panel

Gas and electricity Chairman of Gas and Electricity OFGEM Gas and Electricity Consumer Council

Markets Authority (Energywatch)

Water Director General of Water OFWAT Consumer Council for Water and local

Services customer service committees

Rail transport Rail Regulator ORR Rail Passengers Council and rail

passengers committees

Air traffic Civil Aviation Authority CAA –

Figure 14.1Regulators