Labour to take on ‘rip-off culture’
Proposals to make it easier for consumers to seek collective redress are being studied by Labour as part of its drive to take on a "rip-off culture".
The party is looking into the possibility of introducing a framework for class actions that is already in place in countries like the US and Australia.
It said the scandal over faulty breast implants had highlighted the need for more effective avenues of collective action by consumers than currently exist.
The idea is being considered as part of a "consumers investigation" launched by shadow business secretary Chuka Umunna as part of the party's commitment to standing up to vested interests on behalf of the "squeezed middle".
It will also look at issues facing businesses as consumers.
The investigation will be led by Ed Mayo, a former head of the National Consumer Council, who will hold a series of hearings across the country. His findings will inform Labour's policy review.
Mr Umunna called for a "fairer deal for consumers and businesses alike".
"We need to change the rules of the game to stop business and consumers getting a raw deal," he said. "Labour's consumers investigation, led by consumer champion Ed Mayo, will look into ways that we can empower consumers, back responsible business, underpin fair markets and end the rip-off culture which too often has faced consumers."
Mr Umunna accused the coalition Government of failing to protect people from "rip-offs" despite the squeeze on family budgets.
Mr Mayo said: "The best businesses take the high road and live up to their promises for consumers, but in tough times, many more are doing the opposite – with poor service, new charges and lock-in contracts designed to cut people's choice. The investigation will hold evidence hearings involving key stakeholders across the business and consumer landscape with the aim of looking at the best ways of getting rid of this consumer con culture and to reward the companies who put their customers first."
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