Illegal trading practices have been “decriminalized” in most parts of the UK thanks to resource-lacking local councils.
John Herriman, chief executive of the Chartered Trading Standards Institute (CTSI), told FT that the council department, which was exhausted by funding, exposed consumers to fraudulent traders and unsafe goods.
The warning comes after official estimates in data released last month found defective products and substandard services to UK consumers at £71.2 billion last year, up £71.2 billion from £22.9 billion in 2015.
The biggest losses come from home and garden maintenance services, costing UK consumers £10.3 billion, which is probably an underestimation, according to the Master Builders Federation (FMB).
According to CTSI, budget cuts support much of the increase in losses. Since 2011, expenditures on overall regulated services have declined by 25% overall, and national audit office data shows that there are trading standards (statutory services) with 50% budget cuts over the past decade.
According to CTSI, staffing levels within trading standards have fallen by 40% since 2015, lowering the morale and ability to reduce the morale and decline ability to implement 300 consumer protection laws, which have grown from 250 in the past few years.
“The law is just as good as the enforcement that comes with it. It requires people to go out on the ground and work with local businesses to make sure they know that illegal traders can be caught and that things can be confiscated,” Herriman said. “You can’t do this remotely.”
In the UK, local trade standards teams are conducting prosecutions for violations of gasoline pump price accuracy from market surveillance and food labeling. Meanwhile, national regulators such as financial conduct authorities handle interregional or broader market issues.
Rocio Concha, director of policy and advocacy for consumer groups, said the “inadequate” trading standards service created a “Zip Code Lottery” to protect consumers.
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“The gap in consumer enforcement systems has made it impossible for many teams to carry out important tasks, from cowboy builders to leaving their jobs unfinished to small businesses where products are fake and covered by overseas manufacturers,” Concha said.
Kate Pike, the regional coordinator of trading standards for northwest England, has denounced the chronic lack of funds for lower standards. “We have not invested in this service for a long time during austerity. The chickens are now back on the roost,” she said. “That’s a shame.”
Does London’s Borough have only one or two staff members on its trading standards team, and it amounts to less than 100,000 residents, according to data released on the basis of the request for freedom of information? In comparison, Devon, Somerset, Plymouth and Torbay trade standards have a total of 67 staff, or 3.7 staff per 100,000 people.
Both FMB and CTSI raised concerns that this would allow for the rise of fraudulent traders who install insulation, especially spray foam, without proper research or expertise, resulting in damage such as wood collapse and moisture accumulation. However, surveyors cannot inspect the roof timber once spray foam is installed, so lenders often reject mortgages or equity release applications for properties that are affected.
Herriman said he saw cowboy traders again benefiting through foam removal services, creating “a harmful cycle that can only be broken by having the right level of market surveillance.”
Jeremy Gray of FMB says that, as the builders don’t have a minimum ability level, “I hope you get the right person. I recommend getting three quotes first. You can’t always trust online reviews.”
Enhancing trading standards is “a good move to protect consumers, but there’s a lot to do,” Gray said, urging the introduction of a licensing system for builders.
Herriman said the trading standards services (2,280 officials from England, Scotland and Wales) “have not been recognized as worthy of it at this time,” urging the government to allocate an additional £100 million to rebuild capacity.
He said the government is pushing for a double narrative that it is “imposed on government trading standards” such as the new digital market, competition and consumer law.
The Ministry of Business told the FT that the council will decide on the allocation of expenditures for trading standards, but “are aware of the challenges caused by increasing demand for critical services.”
“At the national level, we support local trading standards with intelligence and testing.”
Your rights if your building work is not working properly
If you have problems with the construction work you have performed, you should be able to fix it or at least get a partial refund. You can also ask for money to apologise for your inconvenience. If a refund is agreed, payment must be made within 14 days.
First, we will address the issue with the trader who arranged the work.
Make sure you have collected documents and receipts before filing a complaint. Take photos to use as evidence. I made a note of what happened, including the date and time.
If you are unable to enter into a contract, consider claiming online via small claims via HM Courts & Tribunals Service or contact your bank or insurance provider to see if you can recover your expenses in the event of fraud or breakdowns.
Alternatively, you can use alternative dispute resolution schemes. For example, the Master Builders Federation has its own services for its members and their clients.
The traders you believe in should report to your council and local Trade Standards Bureau that they have taken risky actions immediately.
