Weak penalties are a ‘just another business expense’ for rogue traders, says MP

COMMENTING ON the Commons public accounts committee’s report into the protection of consumers, South Norfolk MP Richard Bacon, a member of the committee, said:

“Rogue traders are pocketing £4.8 billion a year by exploiting serious gaps in consumer protection.  The way in which the authorities decide who should tackle regional and national scams isn’t working properly.  Many cases are just too big for local Trading Standards, but are deemed too small for the Office of Fair Trading to take on.  Cases are falling between the cracks and the system is weak and potentially wasteful.  Consumers are wide open to being ripped off as a result.

“The potential profit from ripping off consumers can outweigh the maximum penalty if a rogue trader gets caught and convicted, so rogue traders may look on existing penalties as just another business expense. 

“The Department must look again at the way consumers are protected against rip-offs and scams that cross local boundaries.  They must also make sure that the agencies responsible for tackling rogue traders have the powers, the proficiency and the penalties they need to protect consumers effectively”. 

9 November 2011