 The code is designed to help consumers |
A code to help consumers choose traders who offer a high standard of service has been launched by the Office of Fair Trading (OFT). Trade organisations are being asked to seek approval from the OFT for the way they regulate their own members.
If their own codes of conduct are deemed good enough then their members will be able to display a logo saying "OFT - Approved Code".
Among those already approved are bodies for estate agents and travel agents.
According to the OFT, shoppers who see the new logo will be able to buy with the confidence that if something goes wrong they will be properly treated.
"Consumers want to know that they are buying from fair-dealing businesses. The OFT approved code logo will give them that confidence" said OFT executive director Penny Boys.
How will it work?
Under the OFT's scheme, the code of conduct of the trade association will have to ensure:
- there is clear information about the goods or services being purchased.
- a straightforward, quick and easily understandable customer complaints process with access to independent redress if necessary.
- clear and fair contract terms.
- protection for customers deposits or prepayments if a business ceases to trade.
Individual shops or traders will not be able to apply to the OFT for approval.
Instead, they will have to be members of trade bodies which apply on behalf of their members.
Approval will only be given if there is evidence that the code of conduct actually works and gives customers real benefits.
Approved organisations
So far, the trade bodies that have received full OFT approval are the Association of British Travel Agents (ABTA), the Ombudsman for Estate Agents (OEA), the Direct Selling Association (DSA), the Society of Motor Manufacturers and Traders (SMMT), and the Vehicle and Repairers Association (VBRA).
Three other trade bodies have passed the first stage of their assessment.
A spokeswoman for the OFT said it would probably not reveal if an organisation completely failed in its application for approval.
The new scheme was welcomed by the Consumer Minister Gerry Sutcliffe.
"It is great news that the OFT's logo can signpost consumers to companies that go above and beyond the legal requirements in customer service," Mr Sutcliffe said.