Hansard

Since the abolition of the Scottish Consumer Council in October 2008 by the then Labour Government, there has been no dedicated Scottish body with responsibility for protecting and promoting the interests of consumers in Scotland. Until its abolition, the Scottish Consumer Council was for nearly 33 years an independent policy organisation that represented consumer interests to policy makers, regulators, service providers and suppliers. It is an important service that we have been missing for 12 years.

It is only since the Scotland Act 2016 transferred new powers to this Parliament relating to consumer advocacy and advice that the Scottish Government was able to act to help protect consumer interests. When the Scottish Government consulted on the bill in 2018, around half of those who responded said that they found the current consumer landscape in Scotland to be fragmented, complex, disjointed and confusing to navigate. Thomas Docherty of Which? said in evidence to the Economy, Energy and Fair Work Committee that

“The Scottish Government has been very clear, and we have all said, that there is a confusing landscape for consumers.”

He went on to say:

“It is not always about inventing something new; it is about ensuring that consumers know where to go, whether that is to the ombudsman service for redress, or to trading standards, or to Advice Direct Scotland.”—[Official Report, Economy, Energy and Fair Work Committee, 1 October 2019; c 54.]

I am pleased that the Scottish Government recognises that and will develop the new body in collaboration with the stakeholders that are already providing support and advice to consumers today.

We also found in committee that there is a clear need for the body to be dedicated to representing the interests of consumers in Scotland. Responses to the Scottish Government consultation on the bill found that

“There is evidence that in specific markets, Scottish consumers behave differently and have different needs from consumers in the rest of the UK, although there is no mechanism that delivers improved, targeted outcomes specifically for Scottish consumers.”

Section 4 of the bill will address that issue by allowing consumer Scotland to: obtain, analyse and review information relating to consumer matters; undertake investigations into business sectors or practices; and publish reports on any investigations that it conducts under section 4. Areas that could be investigated range from the importance of rural petrol stations, to why Scottish consumers receive more nuisance calls than those in other parts of the United Kingdom, to the on-going issue of parcel surcharges.

Our stage 1 report also recommended that consumer Scotland should have a duty in relation to product recall where it could

“coordinate and disseminate information around major recalls of faulty products.”

Electrical Safety First noted that the average success rate of an electrical product recall in the UK is just 10 per cent to 20 per cent. It felt that consumer Scotland should have a mandatory function to co-ordinate and disseminate information and advice to consumers on significant consumer safety issues. It said:

“this is key to ensuring a consistent and effective message is delivered from a single trusted source in a timely manner.”

I understand the minister’s view, in the evidence that he gave to the committee, that consumer Scotland would be unable to issue edicts about the recall of products. That said, I am pleased that he went on to acknowledge that the body would be able to conduct investigations and make recommendations on how the Scottish Government and others should respond.

I appreciate that the Scottish Government’s subsequent response to our stage 1 report also stated:

“On the specific issue of a recall duty, the Scottish Government believes that, in practical terms, the Bill as drafted would allow Consumer Scotland to take the lead in coordinating a Scotland-wide response to product recalls.”

I very much welcome the Scottish Government recognising the role that the bill could play in improving product recall. The new organisation will recognise and understand our distinct circumstances, such as our rural population and our local industries. Thus, consumer Scotland will move beyond simply highlighting problems and focus on seeking solutions that can make a real difference to the lives of consumers in Scotland.

Sue Davies, head of consumer protection at consumer group Which? said:

“Scottish consumers have told us about how chronic problems across vital industries are negatively impacting their day-to-day lives, from diminishing everyday banking services to patchy telecoms connections. Our research has shown trust in these sectors is dwindling, so the need for a dedicated consumer body backed by the Scottish Government is clear.”

The bill will create an independent champion for the consumer in Scotland that will aim to reduce harm to consumers, increase confidence among consumers in dealing with businesses supplying goods and services, and increase the extent to which consumer matters are taken into account by public bodies in Scotland. When the bill is passed, we will once again have a distinctive organisation safeguarding the consumers of Scotland.