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Building consumers' confidence across the UK

OFT hosts first consumer education Alliance event

209/05    4 November 2005

Government, business and consumer organisations must work together to drive up standards of consumer education in the UK and ensure it is targeted, efficient and effective, said John Fingleton, OFT Chief Executive, at the first gathering of the consumer education Alliance today.

Over 60 public, private and voluntary sector bodies are represented in the consumer education Alliance. The Alliance is the key body for delivering the OFT consumer education strategy, devised in consultation with major UK companies, academics, government departments, enforcement bodies and consumer organisations.

The OFT strategy aims to increase consumers' confidence by providing them with the skills they need to analyse information effectively, manage resources and assess risk when buying goods and services. A strategic planning group directs the Alliance by identifying the skills and knowledge consumers need for particular markets, and setting priorities. Working groups have been set up where key industry figures as well as those from the public and voluntary sectors focus on particular programmes to deliver the objectives of the planning group. 

Programmes and target audiences determined to date include:

• an OFT-led campaign to inform 18 to 24 year olds about the relative costs of different types of credit when choosing how to finance particular purchases
• an initiative bringing together internet service providers and other industry stakeholders to give consumers the skills to resist internet scams
• a credit industry-led project to develop coordinated messages on credit products and services.

John Fingleton, OFT Chief Executive and new chair of the Alliance Planning Group, said:

'Confident, skilled consumers get the most from markets and deliver economic benefits by driving competition and innovation. But consumer education has lacked a proper strategic focus and evidence base. We now have the framework in place to change all that. Businesses can also benefit from informed and confident customers and that is why we need to work together - sharing resources and the knowledge that will help us target our efforts to key audiences and markets.'

NOTE

The Enterprise Act 2002 gave 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. Download the OFT's Consumer education: a strategy and framework (40 kb). See also press releases 182/04 and 113/04.

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