Government plan consumer focus initiative

The Department for Business, Innovation and Skills has launched a new strategy today. Announced by Edward Davey of the DBIS, the strategy takes a radical approach to give consumers more power in their relationships with businesses. The Direct

Marketing Association has applauded the DBIS for the plans which come in a document called Better Choices; Better Deals and believes it is a positive development for the retail industry.

Under these new plans, businesses will provide key information to their customers on how they use and buy goods and services. This will help people get the best deal possible and make business more dynamic in response. It marks a shift away from legislating to make change happen. Instead the strategy announces new ways to help consumers help themselves and challenges businesses to innovate, which in turn will hopefully drive growth in the economy.

Edward Davey said: “This is an important new initiative that will radically change how consumers relate to business. By giving you more power in your relationship with businesses you will be better placed to get the deal you want, and that deal may put a bit of money back in your pocket. “This will in turn reward the most competitive and innovative businesses.”

Strategy plans include working alongside bodies such as the Behavioural Insights Team, Community Organisers and Consumer Focus, to for instance, support the development of a self regulatory quality mark for web and comparison sites and to come up with a new resolution scheme for e-commerce disputes. The UK Cards Association has also agreed to start issuing annual credit-card statements that make it easier for people to understand what they have spent, what they have repaid and any fees they have incurred.

Christine Farnish, Chair of Consumer Focus, said: ‘It’s good news that Government is looking at how more powerful consumers can create more effective markets and public services. While there are companies who want to provide better value and service, the truth is that if you don’t have demanding consumers, then you won’t have responsive markets.’

Retailers reactions have been disgruntled – how could the public understand the new ‘opportunities’ anyhow with no clear guidance.

This announcement follows the Government’s ‘Plan for Growth’, published in March, which they hoped would demonstrate their plans to support economic growth and rebalance the economy.