Unfair business practices: UK consultation

"Whether shopping from the high street, home or online, consumers have a right to be sold to honestly and fairly,” said Consumer Minister Gerry Sutcliffe yesterday. “Life is going to get a lot tougher for the small minority of rogue traders out there who will use underhand tactics to part people with their money.”

The Directive introduces a general prohibition on unfair trading (mainly unfair marketing and selling practices, including unfair advertising). It also has rules on practices that may mislead through acts or omissions or which, through the use of harassment, coercion or undue influence, are aggressive.

The new rules also outlaw practices that, while clearly unfair, are currently not unlawful. These include:

• aggressive doorstep selling;
• scams requiring competition ‘winners’ to call premium-rate numbers;
• bogus closing down sales;
• taking advantage of children’s ‘pester power’;
• advertising unavailable products at low products to attract consumers in order to sell them higher priced goods; and
• falsely claiming consumers will get a better deal if they sign up immediately.

Comments on the proposals are invited by 8^th March. The Directive must be transposed into UK law by 12th June 2007 and come into effect six months later.