back to menuWhile the Government’s Freedom of Information policy is receiving increasing criticism as it is repeatedly watered down, the Office of Fair Trading is reviewing its own policy on access to information.
In a free consultation document "Opening the Door on Fair Trading", the Director General asks if there is a case for listing all those companies subject to formal investigation, or for an electronic version of the Estate Agents Register which lists those prohibited from acting in that role.
Meanwhile the Money Advice Association has called on the OFT for urgent action to regulate lenders who target vulnerable groups and charge excessive interest rates. In the past it has been difficult to get a definition of excessive rates. Recently Enfield Trading Standards Department has reported rates as high as 1,000% allowing little hope of escaping from spiraling debt. "In the Republic of Ireland a system of licensing that incorporates statutory maximum interest rates appears to be working well", says the Association.
The MAFF Food Advisory Committee has considered whether changes are needed in the nutrition claims on food labels. It has decided that the scope of current legislation should not be extended but that revised guidelines should be issued. Information in the nutrition panel on sodium levels should be accompanied by an equivalent salt figure, usually two and a half times the sodium level.
Claims relating to dietary cholesterol should not be made nor claims such as ‘X% fat free’. The levels for labelling as ‘a low fat food’ or ‘low in saturates’ have been reduced to no more than 3 gm fat for solids or per 100 ml for liquids or 1.5 gm for saturates.
The new regulations for bottled water have now come into force. The levels of all minerals in ‘natural mineral water’ must be marked on the label. ‘Spring water’ must be bottled at its source and must not be sold under more than one brand name.
Microbiological criteria will apply. The regulations will give further protection against false or misleading claims.
"Our existing consumer protection rights under the UK Sale of Goods Act are among the best in Europe", says Consumer Affairs Minister Dr. Kim Howells. "Consumers will also have the additional rights to repair and replacement given by the new European Directive".
If shoppers find the goods they buy are faulty or do not match up to the contract, they can insist on having them repaired or replaced, or if that is not possible, have a full or partial refund. If a fault appears in the first six months it will be presumed to have been present when the product was bought. An option in the Directive that consumers must notify the seller within two months of the fault being discovered will not be implemented in the UK.
The buying up of one travel business by another and the links between High Street travel agents, airlines and other associated companies has already reduced choice for the holidaymaker.
A member of Exeter Consumer Group has drawn attention to another practice, the taking over of the booking arrangements for whole hotels. He used to have a choice of tariffs in the brochures of various tour operators but now the hotel to which he regularly returns can only be booked through Thomson Holidays. The result is an increase in price and a reduction in the choice of airports from which he can travel.
This was discussed at the Legislation Committee but it was agreed this could not be considered as anti-competitive, as most hotels would wish to be able to sell their capacity for the whole year to one operator. While sympathetic to the plight of the member it was pointed out that a customer still has the choice of many other hotels in a variety of brochures.
The Director General of Fair Trading, John Bridgeman, has warned airlines to expect legal action if they do not make scheduled flight contracts fairer for passengers. The practices he is targeting include non-transferable ticketing, where a change of travelling companion because of illness or other unavailability, means that the airline claims two fares, even when part of a holiday package. Among the worst terms are rescheduling flights without compensation and financial restrictions on compensation for damage or loss of goods in flight.
The complaints were referred to him by the Air Transport Users’ Council. Other unfair practices are the cancelling of the whole air ticket if part of it is not used, exclusion of liability for other services such as booked car hire from the airport and for statements and promises made by the airline’s agents and employees.
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