Schedule I of Consumer Protection from Unfair Trading Regulations 2008 contains a list of 31 commercial practices that are in all circumstances unfair in consumer transactions (banned practises). Evidence of their effect, or likely effect, on the average consumer is not required in order to prove a breach of one of these outright prohibitions.
These include:
· Displaying a quality mark without authorisation.
· Falsely claiming to be a signatory to a code of conduct.
· Falsely claiming that a product is able to cure illnesses-bogus cures.
· Falsely stating that a product will be available for a very limited time in order to obtain an immediate decision-false “early bird” or “closing down” offers.
· Making a materially inaccurate claim about the risk to the personal security of the consumer or his family if he decides not to purchase the product in question.
· Making personal visits to the consumer’s home and ignoring the consumer’s request to leave and/or stay away.
· Requiring a consumer who wishes to claim on an insurance policy to produce documents which could not reasonably be considered relevant as to whether the claim was valid, and failing to respond to pertinent correspondence in order to dissuade a consumer from exercising his contractual rights.
· Establishing, operating or promoting a pyramid promotional scheme.
· Describing a product as "gratis", "free", "without charge" or similar if the consumer has to pay anything other than the unavoidable cost of responding to the commercial practice and collecting or paying for delivery of the item. This prohibition has given rise to some discussion as to whether the use of the term "buy one get one free" or giving "free" gifts with purchases will be illegal or whether (and this is probably the better view) the cost of buying the original product (for example, the item in relation to which an identical free item is offered or an item with which a free gift comes) will amount to "the unavoidable cost of responding to the commercial practice".
· Falsely representing oneself as a consumer. This means that practices which involve the trader posing as a consumer in order to promote his goods, for example, putting out a restaurant review under a false name, will be unlawful.
he OFT site gives examples of some of the prohibited practices.
The UCPD requires member states to allow persons or organisations with a legitimate interest to take legal action against and/or bring unfair commercial practices before an administrative authority which has the power to decide on complaints or bring legal proceedings. It leaves the member states to decide how this is to be done and to lay down penalties that are effective, proportionate and dissuasive (see articles 11, 12 and 13). This means Consumer Groups such as Which? etc are now more able to take intervention actions on behalf of the consumer.
As well as Prohibited practices there are also:
Misleading ;
Aggressive Commercial and
Unfair
practices
which will also be commented upon in future articles.
