New consumer protection regulations will impose a general duty not to trade unfairly and prohibit misleading practices – including misleading by omitting information.
Only draft regulations have been seen so far. They are due to be published in their final form in November.
But the regulations will:
- Introduce a general prohibition on practices “contrary to requirements of professional diligence”.
- Prohibit misleading practices “by action or omission”, including omission of information a typical consumer might require to make a decision.
- Prohibit 31 specific practices, such as a omitting tax or charges from a price or claiming to be signed up to a code of conduct when a business is not.
The regulations will be backed by criminal sanctions, but also allow civil enforcement – involving court orders – by the Office of Fair Trading and Trading Standards officers.
Both bodies will have investigative powers, allowing them to enter premises and access records, and be able to seek enforcement orders.
Any breach of an order could lead to up to two years imprisonment.