Paying someone to write or show fake customer reviews is going to become illegal under new plans unveiled by the government.<\/p>\n
Businesses offering subscriptions will also have to offer clearer descriptions on what consumers are signing up for – and ensure they can be cancelled easily.<\/p>\n
Other tactics used to manipulate customers into spending more than they wanted are also in the spotlight.<\/p>\n
Meanwhile, pre-payment schemes that allow shoppers to save for Christmas will have to safeguard money that’s paid in.<\/p>\n
It is hoped this will prevent a repeat of scandals such as Farepak, where some on low incomes lost their savings when the company collapsed.<\/p>\n
New efforts are also being made to avoid consumer complaints being dragged through the courts.<\/p>\n
Companies where consumers often make big one-off purchases, such as those providing used cars or home improvement, will be compelled to take part in arbitration or mediation whenever disputes arise over a transaction.<\/p>\n
Consumer and small business minister Paul Scully said: “Business is built on trust. When consumers part with their hard-earned cash, they’ve got every right to expect they’ll get their money’s worth. Cowboy builders aren’t welcome in 21st-century Britain.<\/p>\n
“As we build back fairer, we will protect the UK public from being hoodwinked and help small businesses thrive.”<\/p>\n
Tougher penalties are going to be enforced for unscrupulous traders who fall afoul of these rules – and new powers mean regulators will be able to impose fines that are up to 10% of an offending company’s global turnover.<\/p>\n
There could also be ramifications for bigger companies, as the Competition and Markets Authority will be able to block a wider range of harmful mergers.<\/p>\n
This includes so-called killer acquisitions where big businesses snap up prospective rivals before they can launch new services or products.<\/p>\n
Which? has urged the government to ensure these proposals are swiftly implemented, and warned the pandemic has exposed weaknesses in the current measures designed to stop unscrupulous businesses targeting customers.<\/p>\n