Mandatory scheme for flooring dispute resolution
July 21, 2021
The Government is proposing to require furnishing and flooring firms to go through official arbitration to resolve consumer disputes.
Business Secretary Kwasi Kwarteng and Consumer Minister, Paul Scully, announced yesterday in consultation on the new Reforming Competition and Consumer Policy would apply to home improvement sector "make it mandatory for businesses to take part in arbitration or mediation where disputes arise over a transaction.
"This means both sides have an alternative to the time-consuming and potentially costly route through the courts and levels the playing field for decent businesses who are doing the right thing,” their statement said.
The move which would make the current Alternative Dispute Resolution (ADR) scheme mandatory has received a chorus of support from the Competition and Markets Authority, Which? and Citizens Advice and also from the The Furniture and Home Improvement Ombudsman (FHIO).
FHIO's chief executive Kevin Grix said; "Today’s announcement by the Government will go a long, long way to help protect even more consumers who fall in to dispute with a home improvement business - and further demonstrates that our existing members have been doing the right thing all along.
"Consumers need protection now more than ever. They should expect as a minimum to be treated fairly before, during and after their purchase and should have the comfort that if things go wrong there is an independent organisation to turn to. Good businesses who play by the rules have nothing to fear - with the right knowledge, practice and procedures in place many disputes are avoidable.
"Consumers need protection now more than ever. They should expect as a minimum to be treated fairly before, during and after their purchase and should have the comfort that if things go wrong there is an independent organisation to turn to. Good businesses who play by the rules have nothing to fear - with the right knowledge, practice and procedures in place many disputes are avoidable.
"Businesses who work with us are helping to raise standards and are best placed to learn from complaints in order to improve for the future," he said.
The Government's proposals would make ADR compulsory in both the used car and home improvement sectors — areas where consumers often make large, important one-off purchases. It is just one of a wide range of consumer protection measures that are planned. Others including strengthening the powers of the Competition and Markets Authority and tightening up down on rogue ratings on Internet review websites.
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