Cracking down on websites that connect tradespeople, the Competition and Markets Authority (CMA) has established new guidelines.
These rules outline what trader websites should and shouldn't do to comply with the law.
Websites and apps have become increasingly popular among the public for finding tradespeople to work on their homes. Some websites function as a 'matchmaking' service, where homeowners post the work they need and traders respond. Other sites, such as databases, search engines, or listings, allow homeowners to find local tradespeople and businesses.
Endorsed Traders
The CMA is concerned that the public may assume or be misled into thinking that the traders are checked or rated as trustworthy and of good quality by the website. Householders often assume that because the trader is listed, they are reliable or suitable for the job.
Other sites list traders as members of a scheme or 'confederation', and users assume that such organisations will take action if the tradesperson they employ carries out substandard work.
Trade sites are frequently used by people to find and connect with traders from a wide range of specialisms, including roofing. They rely on online reviews, but have no way of knowing whether the reviews are fake. However, if the work carried out by a listed trader is not satisfactory, the consumer often finds that the listing site used has no power or interest in helping.
The CMA has prepared guidance for trader recommendation websites to help them understand their obligations under consumer protection law. The guidance emphasizes the importance of protecting consumers by following six key principles:
1. Ensure that claims about services and traders on their sites are clear, accurate, and do not mislead consumers.
2. Conduct appropriate checks before allowing traders to advertise on their site.
3. Have accessible, transparent, and effective complaints processes.
4. Monitor the performance of traders on their site effectively.
5. Take action on issues identified through complaints or monitoring activities, including imposing sanctions.
6. Maintain an effective, transparent, and impartial process for handling online consumer reviews.
Mike Andrews of the National Trading Standards eCrime Team, said: “Consumers rely on these platforms to put them in touch with competent and honest traders that can satisfy their needs, and who won’t deliver a poor quality service.
“This draft advice is the start of ensuring that platforms take their responsibilities to vet and verify those traders they promote much more seriously. And, should things go wrong, that they provide consumers with a way to complain.”
