§ Chris GraylingTo ask the Secretary of State for Trade and Industry what plans she has to tighten the regulation of direct selling by utilities. [12152]
§ Mr. WilsonDirect selling is regulated under a range of consumer legislation. The Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations (The Doorstep Selling Regulations), govern doorstep sales and were strengthened in 1998. New Distance Selling Regulations, governing telephone and internet sales, came into force in October 2000. Local Trading Standards departments are responsible for the enforcement of these regulations. Breaches of the regulations that result in harm to the collective interests of consumers could also be grounds for the courts to make a Stop Now Order requiring the company concerned to cease the offending conduct. Under The Stop Now Order (E. C. Directive) Regulations, which came into force on 1 June 2001, the power to apply for such Orders is held by the Director General of Fair Trading, local authority trading standards officers, and sectoral regulators.
In the case of gas and electricity, the Office of Gas and Electricity Markets (Ofgem) introduced a Marketing Licence Condition in 1998 that governs the sales and marketing practices of suppliers. The Licence Condition was strengthened in January 2001. Ofgem closely monitors the sales and marketing activities of suppliers, and, where necessary, it will take formal action against individual suppliers.
In addition, I have recently written to all gas and electricity suppliers to express my concern about the distress caused by incidences of sales malpractice and demand that suppliers improve their performances. Consumers affected by sales malpractice not only form a negative view of an individual company, but also of the competitive market as a whole. It is in suppliers' own interests to maintain the highest possible sales standards, to resolve problems rapidly where they occur and to ensure that the consumer is content with the outcome.