As part of the proposed reforms, 31 dishonest trading practices – including scaremongering customers and making false claims about membership of a trade association – would be an offence.
Trading Standards would also be given greater powers to investigate breaches and bring offenders to justice.
Alison de Bourcier, director of Trading Standards, said that the biggest problem they had in Jersey was businesses falsely claiming accreditation.
‘Our biggest concern is in relation to traders claiming to be members of a trade association, when we have found that that membership has not been reviewed or renewed,’ she said.
‘Another issue is goods being promoted as a bargain when they are not. The new laws are adopted from regulations which were introduced in the EU and then the UK.
‘They will give us the ability to tackle any emerging bad practices as they arise.’
The proposed legislation, which aims to ‘enshrine current good practice into regulation’, would apply to practices such as pressure selling, offering misleading information and applying hidden charges.
Examples of practices which would be banned include:
lClaiming that a product can help you win a game of chance.
lFalsely claiming that a product can cure illness.
lClaiming that a product is free when the consumer has to pay delivery costs.
lCreating the impression that a customer cannot leave your premises until they have bought a product.
lTelling a consumer that their or their family’s personal security will be at risk unless they buy a product or service.
Additionally, if businesses do not provide an after-sales service in different languages, they would be required to advise any non-English speaking customers of this.
Deputy Murray Norton, an assistant minister in the Economic Development Department with responsibility for consumer protection, said that they do not want ‘rogue traders’ cheating Jersey consumers.
‘This law will protect consumers from sharp practices by unscrupulous traders and level the playing field for the vast majority of honest businesses that trade fairly,’ he said.
‘Islanders should be able to trust the information they are given by traders, and this new law applies to all businesses that deal with consumers. It covers the entire process from advertising, quotes and contracts, through to after-sales services.’
He added: ‘Trading Standards will have the power to investigate alleged breaches of regulations. Rogue traders could face prosecution and a £10,000 fine.’
Jersey Trading Standards currently handle around 1,000 consumer cases a year. About a third of consumers disclose the value in dispute, and of this number more than £1.8 million worth of goods and services has been investigated so far this year.
A statement released by the Economic Development Department says that any additional enforcement would be paid for by funds already allocated in the Medium Term Financial Plan, which outlines States spending plans.
The proposals are due to be debated in the States on 20 February.
FACTBOX:
Other ‘rogue’ trading practices which could be banned include:
– ‘Baiting’ customers into buying a product at a price offer you can’t provide
– Providing a trust or quality mark without authorisation to do so
– Falsely claiming that you are a customer of your own business to help secure a sale
– Running pyramid schemes [a business model that recruits members by using a promise of payments or services for enrolling others into the scheme]
