OFT launches consultation on consumer education strategy

113/04     20 July 2004

A new, co-ordinated approach to consumer education in the UK is needed, said the OFT today at the launch of a consultation on its consumer education strategy.

Download the consultation document A strategy and framework for consumer education (pdf 83 kb)

Over 600 organisations in the UK are involved in providing consumer education (see note 3). Most consumer education initiatives are carried out by individual organisations, acting independently. This leads to duplication, an inefficient use of resources and a lack of clear focus. The OFT's proposed strategy and framework have been devised with the help of major UK companies, academics, government departments, enforcement bodies and consumer organisations. The OFT will bring together public and private sector organisations to develop co-ordinated consumer education initiatives following an agreed set of priorities.

Research commissioned by the OFT shows that poor quality goods and services cost consumers £8.3 billion each year (see note 4). Over 40 per cent of consumers do not feel informed about their rights (see note 5). The OFT consumer education strategy aims to equip consumers with the confidence, skills and knowledge to analyse information in line with their needs; manage resources effectively; assess risk in making responsible decisions; communicate effectively in a wide range of consumer situations; and solve problems when they arise. 

To turn its strategy into action, the OFT's new framework proposes the following groups and roles:

• a broad Alliance which will bring together a wide range of public and private sector stakeholders that choose to work towards the yearly priorities set by the Planning Group
• a Planning Group which will commission and examine research, and set annual priorities
• Working Groups which will focus on each of the annual priorities set by the Planning Group.

Penny Boys, Executive Director of the OFT, said:

'Consumer education provides practical skills and knowledge that are relevant to everyone. Confident, well-informed consumers get the most from today's complex markets and help deliver economic benefits by driving competition and encouraging businesses to innovate.'

The consultation period will run until 14 September 2004. The OFT will publish a formal response to the consultation during October 2004. This will set out a completed strategy and framework for consumer education, together with an analysis of responses.

NOTES

1. Download the consultation document A strategy and framework for consumer education (pdf 83 kb).

2. Responses to and comments on the strategy can be sent to Ken Savage-Brookes, Room 5C/011, Office of Fair Trading, Fleetbank House, 2-6 Salisbury Square, London EC4Y 8JX, telephone 020 7211 8326, email ken.savage-brookes@oft.gsi.gov.uk

3. Source: Consumer Education in the UK, Katrina Ritters (TSI, May 2003).

4. Source: Consumer Detriment (OFT, February 2000).

5. Source: OFT consumer tracking survey, to be published summer 2004

6. The Enterprise Act 2002 gives the OFT new powers to use consumer education to support its work in making markets work well for consumers. The OFT set up a consumer education strategy group in October 2003 as a first step in developing its strategy. The development of the strategy and framework for consumer education has been closely informed by the group's discussions. 

7. Contributors to the draft policy include:

Alan Wells  - Basic Skills Agency
Teresa Perchard - Citizens' Advice
Steve Costello / Carol Edwards - Consumer Council of Northern Ireland
Martyn Evans - Consumer Council of Scotland
Louise Hanson - Consumers Association
Katherine Cowell - Department for Education and Skills
John Joshua - Department of Trade and Industry
Jonathan Rees - Department of Trade and Industry
Elizabeth Fagan - DSG Retail Limited
Jill Stevens - Experian
Shaun Mundy - Financial Services Authority
Helen Fleming - HM Treasury
Margaret Humphries / Derek Allen - LACORS
John Spence - Lloyds TSB Group
Dr Bernardo Batiz-Lazo - London South Bank University
Richard Wolff - Marks and Spencer plc
Yvonne Gallagher - Money Advice Scotland
Ed Mayo - National Consumer Council
Penny Boys (Chair) - Office of Fair Trading
Colin Brown - Office of Fair Trading
Paul Burton - Office of Fair Trading
Sue Cook - Office of Fair Trading
Donna Wheeler - Office of Fair Trading
Christine Wade - Office of Fair Trading
Neil Wilks - Office of Fair Trading
Carol Brennan - Queen Margaret University College
Ron Gainsford - Trading Standards Institute
Professor Prue Huddleston - Warwick University
Nich Pearson - Welsh Consumer Council