160/07    21 November 2007

The Renewable Energy Association (REA) has successfully completed the first stage of the OFT's Consumer Codes Approval Scheme (CCAS) for its REAL Assurance Scheme.

The REA is the trade association for the domestic renewable and energy efficient generators industry. The code will cover activities in the sale, installation and servicing of micro-renewable energy products such as solar panelling, micro-wind turbines, ground source heat pumps and wood stove burners usually sold for the home.

By completing Stage One, the REA has satisfied the OFT that its consumer code of practice promotes and safeguards consumer interests beyond the minimum requirements of consumer law. Key features and benefits of REA's code are:

• members will provide realistic estimates of the likely performance of the product in a way that can be understood by consumers
• members will conform to quality standards set by the Microgeneration Certification Scheme - the scheme developed by the Buildings Research Establishment (BRE) which are also the standards required by the Government's Low Carbon Buildings Programme
• members are forbidden from employing high pressure selling/inducement to force quick buying decisions, and will provide consumers with a seven day cooling off period regardless of the method of sale
• consumers prepayments or deposits will be protected in the event that a member is unable to fulfill the order, and
• a low cost independent redress scheme.

The REA will now be invited to provide the OFT with evidence that its code is working in practice and delivering on its promises. In doing so the REA will undertake comprehensive monitoring procedures including independent audits, mystery shopping exercises and consumer satisfaction surveys.  Only codes that demonstrate that they are effective in promoting consumer interests are entitled to display the OFT Approved Code logo and official promotion.

John Fingleton, OFT Chief Executive, said:

'The REA has undertaken a great deal of work to develop this code of practice, and we look forward to working with them during the next stage towards OFT approval. Consumers who buy goods or services from a business with an OFT approved Code can expect a much higher standard of protection than that required by law.'

NOTES
 
1. The OFT's Consumer Codes Approval Scheme (CCAS) aims to promote and safeguard consumer interests by helping consumers to identify better businesses, and to encourage those businesses to raise their standards of customer service. The core criteria cover the organisation of the code sponsor, the preparation and content of the code, complaints handling, monitoring, compliance and publicity.

2. The OFT's Consumer Codes Approval Scheme consists of two stages. During Stage One the code must meet the OFT's published core criteria, which contain measures designed to remove or ease consumer concerns about undesirable trading practices. At Stage Two the code sponsor must prove that its code lives up to the promises made in Stage One by demonstrating that the code is being effectively implemented by its members and that consumer disputes are properly resolved.

3. The Enterprise Act 2002 (Part 1, Section 8) gives the OFT powers to approve and promote consumer codes of practice that meet the OFT's core criteria. The OFT's Consumer Codes Approval Scheme aims to promote and safeguard consumers' interests by helping consumers identify better businesses and to encourage businesses to raise their standards of customer service.

4. For more information see the Consumer Codes Approval Scheme section.

5. The Society for Motor Manufacturers and Traders (SMMT) received approval for its code on 27 September 2004 (see press release 153/04), the Vehicle Builders and Repairers Association Ltd (VBRA) received approval on 13 October 2004 (see press release 169/04), the Direct Selling Association (DSA) received approval on 16 December 2004 (see press release 209/04), the Ombudsman for Estate Agents Company Ltd (OEA) received approval on 8 September 2005 (see press release 170/05) and the Carpet Foundation received approval on 2 January 2007 (see press release 01/07). Code sponsors who have completed Stage One and are working towards approval of their consumer code are: MVRA Ltd (see press release 09/05), Debt Managers Standards Association (DEMSA) (see press release 121/05), British Association of Removers (see press release 18/06), Safebuy (see press release 37/06), Robert Bosch Ltd (Bosch) (see press release 40/06) and British Healthcare Trades Association (BHTA) (see press release 108/06).