News IAKOV FILIMONOV / SHUTTERSTOCK Its about doorstep sales returning to the energy sector, if that helps you select an image (vulnerable person in their home, being sold to?) Concerns over doorstep selling voiced CTSI is concerned that proposed changes around the household energy sector could see unscrupulous and potentially illegal sales tactics reintroduced. The institutes fear stems from an Ofgem consultation proposing a move from a prescriptive regulatory regime to a general principles approach. Meanwhile, ScottishPower wants the Competition and Markets Authority to make it easier to sell energy face-to-face including door-todoor arguing that industry standards are improving.1 Doorstep selling was scrapped four years ago2 after it was found 52 per cent of customers who signed up to deals offered by cold-callers were actually left worse off3. CTSI called for a ban in 2009. Steve Playle, CTSIs lead officer for energy and climate change, disagreed that doorstep selling helped people find cheaper deals, citing the industrys poor track record of dealing with customers. He said: Time and time again, the activities of sales reps across a whole range of sectors, including energy, have generated complaints to trading standards. All businesses need to be aware that deceptive, misleading and illegal sales practices are not acceptable and can lead to investigation and ultimately, prosecution. In 2014, energy giant E.On paid out 12m to its customers following an investigation that found the company had broken energy sales rules.4 The previous year Scottish and Southern Energy was fined 10.5m after some customers were encouraged to switch to contracts that were actually more expensive than proposed.5 CTSI is also urging caution over a government-led scheme that aims to fitsmart meters in all homes across England, Scotland and Wales by2020. Playle added: This could encourage energy companies to use the installation of a new meter as an opportunity to sell additional products such as insurance cover, new boilers or solar panels. However, there are clear guidelines governing the smart meter roll-out to prohibit this type of activity taking place and we will be keeping an eye on how things progress. In 2009, CTSI called for a ban on energy doorstep selling, at its annual conference, in Brighton, after the issue was debated with industry professionals. Read more about proposed changes to the energy sector. BRDO and NMRO scrapped in favour of new BIS directorate Further cuts to government-funded services has led to the Better Regulation Delivery Office (BRDO) and National Measurement and Regulation Office (NMRO) being scrapped and a new directorate formed to focus on regulation and enforcement. The new Regulatory Delivery directorate, which will sit within the Department for Business, Innovation and Skills (BIS), was expected to come into force from 1 April 2016. At the time of writing, BRDO was responsible for improving the way in which local and national regulators enforce regulations, while the NMRO operated as an executive agency within BIS sponsored by BRDO aiming to simplify technical regulation. The new directorate will ensure that regulation is enforced in a proportionate and risk-based manner, delivering existing functions such as Footnotes: 1. ScottishPower consultation submission to CMA Energy market investigation Primary Authority, legal metrology and hallmarking policy, technical regulation and enforcement 2. E.On last of the Big Six to end doorstep selling in 2012 work. It will be led by former BRDO director Graham 3 Ofgem Energy Supply Probe Initial Findings Report (Section 9.15) Russell and report to Small Business, Industry and 4. E.ON to pay 12m package following Ofgem mis-selling investigation Enterprise Minister, Anna Soubry. 5. Ofgem nes SSE 10.5m for mis-selling SSE were convicted of offences under the Consumer Protection from UnfairRegulations and fined 1.25m following a prosecution by Surrey TradingStandards Russell said: Combining two organisations is challenging but I know that we are committed to working well together, using fewer resources for better outcomes. Aggressive sales guide uncovered in trading standards investigation SPEEDKINGZ / SHUTTERSTOCK Directors of a roofing company have been prosecuted in the UKs longestever trading standards trial, after a comprehensive training guide on manipulative sales techniques was uncovered. A four-year investigation into Summit Roofguard, a multi-million pound soffits, facias and guttering company, was conducted by Dudley Trading Standards and resulted in sentencing in March 2016. The firms directors each received jail sentences of two and a half years. The 21-page, scripted training guide describes direct sales techniques believed to be commonly used in the industry, and highlights the belief that such methods and guides are widely shared. The guide, uncovered during the investigation, acted as a sales staff manual for convincing customers that they were receiving significant discounts while pressuring them into overpriced sales. Titled The 14 Steps to a Sale, itwas often used to pressure vulnerable and elderly victims. Leon Livermore, CTSI chief executive, said: Throughout the case, the defendants suggested their techniques represented what was industry standard and gave evidence that several other major firms used similar methods and even similar guides. Wolverhampton Crown Court heard how victims, including those with dementia and cancer, were targeted by the firm and heavily pressured into buying unnecessary products. Many could not afford the inflated prices without taking out finance a key section in the script, which resulted in higher payments. It was used to con victims out of many thousands of pounds, with one pensioner paying more than 20,000 including interest on a loan he could ill-afford for guttering that could have been repaired for about 40, said Livermore. Judge Amjad Nawaz described the guide as effectively a complete sham and referred to wholesale breaches of safeguarding. The case will be a wake-up call for rogue traders and dodgy salesmen, said Livermore. Local authorities review just another kick in the teeth The governments decision not to publish The government has already reviewed Growth and Department for Business, a review of trading standards and instead trading standards services, undoubtedly Innovation and Skills is designed to initiate a cutting red tape review of local found they are under-resourced, and there build on the findings of the trading authority-enforced regulation has been is no reason why they shouldnt publish standards review, placing it in a wider criticized by CTSI. and act on the findings, said Livermore. context of regulation enforcement by The government committed to This is what they said they would do in local authorities. This is just another kick in the teeth for reviewing trading standards in July a major product recall review [published last year, and its report was widely in February] but, with this further review, UK consumers who have heard enough expected to be published in November they are shifting focus from a core issue talk and now they need action, added 2015. Leon Livermore, the institutes chief without answering any questions. Livermore. The cutting red tape review closes on executive, described the governments According to the government, this latest decision as a kick in the teeth for latest review led by the Cabinet Office, 28 April. Comments can be emailed to UK consumers. Department for Communities and Local cuttingredtape@bis.gsi.gov.uk