Is it the end of Trading Standards enforcement as we know it?

legal updates

Earlier this year, the Digital Markets, Competition, and Consumers Act 2024 obtained Royal Assent.

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For decades, the motor industry has been subjected to the scrutiny of their local Trading Standards office and the variations that local enforcement brings. One officer in one area may decide to take action against a dealer, whilst another dealer in a neighbouring county or London borough has no such action taken. The so-called “postcode lottery” of Trading Standards enforcement. 

But, is all that about to change?

Earlier this year, the Digital Markets, Competition, and Consumers Act 2024 obtained Royal Assent. And so, ladies and gentlemen, we can now formally introduce to you……

The Competition and Markets Authority – with “beefed up” powers!

The CMA, as we shall refer to it here, has long been attending to just what its name suggests – competition in the marketplace.

This new act introduced penalties for traders that break consumer protection law, and to which end, the CMA will enforce consumer law directly. Fines will be imposed by the CMA without the need for them to take a business to court.

Hidden fees will also need to be included in the initial cost or clearly illustrated at the start of the purchasing journey. This will ensure consumers are clear from the outset about what they are spending. So, no more hidden “administration” charges – they must be clearly made known to the potential buyer before they make the decision to purchase, and not at the point of making that purchase.

It is too early to tell how this will “pan out” in the months to come, but we hope the CMA will engage in reasonable dialogue with businesses and get more uniform enforcement across the board when such businesses are clearly ripping off customers. We want to see the end of “technical offences” such as being prosecuted for advertising a car with 12-months MOT, when it only has six months left when advertised, but where the car would go on to be sold with a brand new MOT at the point of handover.

However, it must be noted that the relevant Schedule of the Consumer Rights Act – relating to the enforcement of consumer laws – merely ADDS the CMA as an enforcer – and does NOT REPLACE Trading Standards in that role. And that is just what we all want – duel enforcement!

If you are approached by the CMA or Trading Standards and want assistance, we are here to assist where we can. Further updates on the act will be appearing in future legal updates.

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Jason WilliamsLegal AdvisorRead More by this author

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