Consumers' Association gets new powers

The Consumers' Association is to get new powers to protect people from dishonest businesses.

The organisation has become a 'Designated Enforcer' and joins other bodies such as the Civil Aviation Authority, the Office of Communications and the Financial Services Authority in being able to enforce consumers' rights.

They will be able to take action, under the Government's Enterprise Act, against businesses that breach consumer legislation by applying to the courts for 'Stop Now Orders'.

These orders force a business to stop trading dishonestly or face fines or jail. In addition, the Consumers' Association can seek assurances from traders they will not repeat their dishonest conduct.

Consumer Minister Gerry Sutcliffe said: "I am delighted that I have been able to make the Consumers' Association a designated enforcer as it strengthens the voice of the consumer.

"The Consumers' Association has been a leading advocate of consumer interests over many years and these new powers will allow them to continue their excellent work."

Examples of recent enforcement action include acting against:

• the supply of unsatisfactory quality goods;
  
• misleading advertising; and,
  
• the use of unfair terms in contracts.

Consumer protection

The Consumers' Association has been granted this power under Part 8 of the Enterprise Act 2002 which enables specified enforcement bodies to apply to the courts for a Stop Now Order to stop a business from breaching certain specified legislation, where the breach harms the collective interests of consumers.

Enforcement bodies can seek assurances from traders who infringe a wide range of consumer protection legislation that they will stop doing so. Failure to uphold such assurances can result in a Stop Now Order being issued in a Civil Court - which is similar to an injunction. If the trader ignores the order they may be in contempt of court and could face a fine and/or imprisonment.