Government announces broad review of consumer law

The Government has announced a broad review of consumer law. John Hutton, UK Business Secretary, has suggested that the current complex maze of consumer law should be swept away and replaced by a broader, more consistent approach. This could have a far reaching impact on consumer safety and contract law. It is important to all retailers, their suppliers, and any other businesses selling goods or services to consumers.

Consumer law is complex, even for an expert in consumer law. There is no doubt that it creates red tape and barriers for businesses. Therefore, this initiative is to be welcomed.

However, as the implementation of the Unfair Consumer Practices Directive has shown, simplification can result in broader obligations. Simplification will mean legislation will be less specific and that will mean businesses will have less certainty in compliance. In other words, this initiative will probably make it clearer what principles businesses will need to comply with. However, businesses will have less guidance on the specifics of compliance.

Another challenge for the Government is that much of the complexity in consumer law has its roots in European law. The European Commission is in the process of a slow moving review of European consumer law. The Government's ambitions may therefore be thwarted by the need to comply with European law.

The Government is seeking comment by 31 July 2008.

For more background on this, read the Department for Business, Enterprise and Regulatory Reform's press release.