Embracing consumer rights is good for business - Vicky Crichton

What does it mean to empower consumers? All of us are consumers of all sorts of different goods and services. Some purchases we choose to make, some are necessities, and others might be forced upon us by circumstances.

We all want to have choice and freedom in making those purchasing decisions for ourselves and our families. In many sectors, though, the complexity of the products and services on offer, and the potential risk if things go wrong, mean we also expect there to be a level of regulation to protect us. That’s the case in legal services, but also in other vital sectors like financial services and utilities.

Many regulators in those sectors are thinking about how best to promote consumer confidence and reduce harm. Late last year, the Financial Conduct Authority consulted on its proposed Consumer Duty. It says that too often consumers don’t get the benefits or value they should expect from financial products and services, or don’t get the information or help they need, when they need it. By calling on firms to focus on putting good customer outcomes at the centre of their business, the FCA aims to ensure customers can make good financial decisions and have greater trust in firms.

In a similar vein, last month the Legal Services Board for England and Wales published a statutory statement on empowering consumers to access information about the service and quality of legal services providers. It aims to ensure that those who need legal advice have the information they need to shop around and choose the provider most suited to their needs. This includes useful information about the cost and quality of legal services and on redress and regulation.

Vicky Crichton is Director of Public Policy, Scottish Legal Complaints Commission

Closer to home, Consumer Scotland has recently been established with a remit to reduce consumer harm and increase consumer confidence, and a mission to put consumer rights and interests at the heart of markets, services and policy.

All this strikes a chord for us at the Scottish Legal Complaints Commission. We know that the vast majority of consumers are satisfied with the legal services they receive, but we also see the examples where consumers feel they haven’t had the service they expected, or seen the benefits and value they thought they were being sold. It’s vital that options for redress are available to both encourage consumer confidence and to seek to correct any detriment consumers experience.

In his seminal 1962 speech on consumer rights, US President John F Kennedy said consumer trust equals consumer spending. In other words, embracing consumer rights is good for business. Sixty years on, that idea has stood the test of time. Where consumers feel protected, prioritised and listened to, they are more likely to buy, to buy again in future, and to encourage others to buy.

Delivering that consumer trust means nurturing a thriving, competitive market where consumers can exercise choice to access the service they need. That relies on firms being clear about the service they’re offering, and open and upfront about cost. It means a focus on good outcomes for all consumers, including those who might be vulnerable. And it means a way to put things right if they go wrong.

Ultimately empowering consumers and putting their interests at the heart of services is good for consumers and good for business. It’s an aim we should all be able to get behind.

Vicky Crichton is Director of Public Policy, Scottish Legal Complaints Commission