Retailers sign up to new ombudsman service

A retail watchdog led by an ombudsman has been launched to settle disputes between shops and consumers, aimed at helping consumers who have made a complaint directly to a retailer and the issue has not been resolved.

The Retail Ombudsman, which is voluntary for retailers, will begin taking complaints from January 2 and the organisation claims that the service will aid shoppers who would not be able to afford legal representation.

The service has already attracted a number of retailers including Debenhams, River Island, Mothercare, BHS, New Look, Matalan, Peacocks and Principles, who will be charged up to 2,000 pounds a year to join and 45 pounds for each case that the ombudsman takes on.

"In this day and age, with shopping online as well as the high street, there are millions of complaints. A large proportion get resolved, but a large proportion don't,” Barrister Dean Dunham, who will start work as an ombudsman in January, told the BBC. "Those people are frustrated and they don't know where to turn and can't afford a lawyer. Now they can turn to the ombudsman."

Dunham added: "If your retailer's not part of the scheme, perhaps you should think twice about shopping there, because we are the security blanket.”

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Last year, more than six million complaints were made by consumers, with most linked to purchases made during the Christmas period, which is why the watchdog is saying that the independent service is so important. It predicts that it will be handling around 170,000 complaints per year, all of which will be paid for by the retailers who have signed up to the service.

The Retail Ombudsman states on its website: “By dealing with a member of The Retail Ombudsman, the public may be confident about the retailer’s practice and procedures, including the way in which it addresses customer complaints.”

The service will follow rules laid down by the Ombudsman Association and can only act after a consumer has complained and given the retailer at least eight weeks to respond. Complaints must also be lodged within six months of the incident and are free to the consumer. The ombudsman also states on its website that complaints can be made against companies not signed up; although it states that it will have no power to impose sanctions upon them.

The Retail Ombudsman will be overseen by an independent board chaired by businessman and government adviser Sir Eric Peacock, who is currently the non-executive director of UK Trade & Investment.