The Office of Fair Trading (OFT) has this week published its findings on trading practices in consumer transactions, including airlines adding charges to online sales, and shops imposing surcharges on customers' debit card purchases.

Such practices, which often hide charges from a customer until late in the transaction, are included in what are called 'unfair trading practices'.

They are illegal under the Consumer Protection from Unfair Trading Regulations, which came into force in 2008, implementing a European Directive on consumer transactions.

What is an unfair trading practice? 

A commercial practice is unfair if it:

• contravenes the requirements of professional diligence
• materially distorts or is likely to materially distort the economic behaviour of the average consumer with regard to the product

There are four main categories of trading practice that will be considered unfair:

• a general ban on any conduct falling below what might generally be expected towards consumers
• misleading practices, such as deceptive appearances or presentation of goods or misleading commissions
• aggressive sales techniques, for example harassing customers or coercing them into a purchase
• a ban on 31 specific practices, listed in the Regulations, which are always considered unfair and include falsely claiming endorsement from a public or other body, fake closing down sales, so called 'bait and switch' practices and advertising targeted at children

Penalties

If a trader is found to be acting unfairly, the OFT or local trading standards officials, who have a duty to enforce the Regulations, will likely in the first instance visit the trader and seek to educate and persuade them toward more consumer friendly practice. Persistent offenders may find themselves facing both civil and criminal action, resulting in a fine or even prison.

What if I've been affected?

The key requirement is that you or a fellow consumer is likely to alter your behaviour as a result of the unfair trading practice. Perhaps the best test is this: Have you been led to make a purchase of specific goods or services that you otherwise wouldn't have?

If you've been affected, you should first contact the OFT at www.financial-ombudsman.org.uk or your local trading standards office to report the issue. If you think you've a claim for financial losses caused as a result of an unfair trading practice, you may be able to recover them through civil court proceedings.

If you or someone you know requires further advice, please call our legal helpline on 03700 86 86 86.

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