Having returned from a disappointingly snow-less winter holiday I was delighted to see that The Retail Ombudsman's ("TRO") website is up and running.Launched on 1 January 2015, TRO is an independent
Having returned from a disappointingly snow-less winter holiday I was delighted to see that The Retail Ombudsman's ("TRO") website is up and running.
Launched on 1 January 2015, TRO is an independent organisation established to resolve disputes between consumers and UK retailers (both bricks and mortar and online). TRO is a voluntary organisation (currently without certification or legislative backing), and is funded via membership and complaints handling fees. Retailers can sign up to the TRO, whereby they agree to be bound by the scheme's Code of Practice. Consumers can submit complaints about a retailer's goods and/or services and TRO will investigate the complaint and come to a decision as to whether a retailer is in breach of consumer protection laws. If a consumer disagrees with the TRO's decision TRO released a statement (here) confirming that the consumer can appeal the decision through TRO or take the claim to the courts. If a member-retailer disagrees with the TRO decision it is currently unclear what the ramifications will be, or how TRO could enforce a decision against a member retailer.
TRO will also assist consumers with complaints lodged against retailers who are not members. If a non-member retailer is contacted by TRO any decision is merely advisory.
As a retailer why would I sign up with TRO?
Given the unenforceability against non-members, and the membership and complaint handling fees, it might initially appear that there is little benefit to TRO membership as a retailer would merely be paying fees in order to subject themselves to a third party's (potentially) more onerous Code of Practice. However, TRO has received a great deal of publicity from a number of leading news outlets; as the TRO brand grows in the eyes of the consumer, the value and consumer trust a retailer derives from the TRO 'seal of approval' will also grow. Also, by handling consumer complaints, TRO acts as filter to spurious complaints. This can potentially save a retailer time and resource which they may have otherwise expended dealing with the complaint themselves.
It should also be mentioned that Directive 2013/11/EU on Consumer Alternative Dispute Resolution (the "Directive") – which must be implemented in the UK by 9 July 2015 – requires that (amongst other things) a certified Alternative Dispute Resolution ("ADR") body is available to handle disputes concerning contractual obligations between consumers and businesses. Given TRO's launch date proximity to the Directive's implementation date it seems more likely than not that TRO will seek to become the certified ADR body for consumer complaints concerning goods and services. Businesses and consumers would therefore be sign-posted to TRO for all consumer goods and services complaints at first instance, further raising the profile of TRO.
Retailers should be aware of TRO and their powers, and make an informed decision whether they wish to subject themselves to TRO's Code of Practice now, later, or not at all.
TRO's website can be found here.
Launched on 1 January 2015, TRO is an independent organisation established to resolve disputes between consumers and UK retailers (both bricks and mortar and online). TRO is a voluntary organisation (currently without certification or legislative backing), and is funded via membership and complaints handling fees. Retailers can sign up to the TRO, whereby they agree to be bound by the scheme's Code of Practice. Consumers can submit complaints about a retailer's goods and/or services and TRO will investigate the complaint and come to a decision as to whether a retailer is in breach of consumer protection laws. If a consumer disagrees with the TRO's decision TRO released a statement (here) confirming that the consumer can appeal the decision through TRO or take the claim to the courts. If a member-retailer disagrees with the TRO decision it is currently unclear what the ramifications will be, or how TRO could enforce a decision against a member retailer.
TRO will also assist consumers with complaints lodged against retailers who are not members. If a non-member retailer is contacted by TRO any decision is merely advisory.
As a retailer why would I sign up with TRO?
Given the unenforceability against non-members, and the membership and complaint handling fees, it might initially appear that there is little benefit to TRO membership as a retailer would merely be paying fees in order to subject themselves to a third party's (potentially) more onerous Code of Practice. However, TRO has received a great deal of publicity from a number of leading news outlets; as the TRO brand grows in the eyes of the consumer, the value and consumer trust a retailer derives from the TRO 'seal of approval' will also grow. Also, by handling consumer complaints, TRO acts as filter to spurious complaints. This can potentially save a retailer time and resource which they may have otherwise expended dealing with the complaint themselves.
It should also be mentioned that Directive 2013/11/EU on Consumer Alternative Dispute Resolution (the "Directive") – which must be implemented in the UK by 9 July 2015 – requires that (amongst other things) a certified Alternative Dispute Resolution ("ADR") body is available to handle disputes concerning contractual obligations between consumers and businesses. Given TRO's launch date proximity to the Directive's implementation date it seems more likely than not that TRO will seek to become the certified ADR body for consumer complaints concerning goods and services. Businesses and consumers would therefore be sign-posted to TRO for all consumer goods and services complaints at first instance, further raising the profile of TRO.
Retailers should be aware of TRO and their powers, and make an informed decision whether they wish to subject themselves to TRO's Code of Practice now, later, or not at all.
TRO's website can be found here.