CMA Warns Against ‘Trusted’ Trader Recommendation Sites

WARNING AGAINST using websites with terms like ‘trusted’, ‘reliable’, or ‘expert’ to describe tradespeople, the Competition and Markets Authority (CMA) has issued advice to consumers. It has also issued advice to the website owners.

Trader recommendation sites are websites and apps that say they help consumers to find and connect with tradespeople, such as roofers and builders.

They recommend traders to consumers, often stating that those advertising on their site have been vetted or checked on the quality of their work.

‘Trusted’ Trader Recommendation Sites

However, consumers have found that recommendation sites are unwilling or unable to offer any help if things go wrong.

In one case, a consumer needing guttering work done used a trader recommendation site to find a trader. They turned out to be a rogue trader and the individual lost around £2,000. The consumer tried to make a complaint to the trader recommendation site, but was unable to do so via email or via telephone.

In general, rogue traders cost homeowners around £1.4billion a year, according to a government estimate.

False Ratings and Reviews

Many tradespeople are themselves concerned that websites and apps do not recommend the best tradesperson for the job.

False listings and reviews give deceitful individuals an advantage because they lie and fabricate reviews to get top ratings. These privilege the worst ‘traders’ using the site. And when things go wrong, consumers find the website that listed them does not help.

The CMA tips to help people choose a trader recommendation site caution users not to take ratings at face value because they may not be true or checked.

The CMA also advises consumers to only use websites that check tradespeople’s licenses, insurances, and certificates and have complaints and dispute processes in place.

Hayley Fletcher, Interim Senior Director of Consumer Protection, said: “Millions of people use these sites to find a trusted and skilled trader, but that’s not always what they get. We’re arming consumers with a handy set of tips to use while navigating trader recommendation sites to help them find a legitimate and reliable trader.

“We’ve also issued advice for the sector – meaning sites should be entirely clear about what they should and shouldn’t do when it comes to consumer law. Not only does this help protect consumers, it also means that the thousands of reliable and honest professionals who rely on these sites to connect with customers are competing on a level playing field.

“We expect all trader recommendation sites to carefully read the advice and review their practices. We’ll be monitoring the sector to see if more action is needed.”

The CMA has also finalised its advice for trader recommendation site businesses to comply with consumer law. The advice is on vetting and complaints practices, monitoring and sanctioning users and checking reviews.

Mike Andrews, National Coordinator for the National Trading Standards eCrime Team, said: “We’ve welcomed the work CMA and partners have done to get this guidance in place. It marks the start of trader recommendation sites ensuring they vet and verify traders more carefully and take consumer complaints more seriously.

“With the guidance finalised and by following these tips, consumers can now be more confident about getting the right plumber, plasterer, or roofer for the job, while genuine traders will no longer miss out on jobs that might otherwise have gone to illegitimate ones.”

Licensing Tradespeople

The Federation of Master Builders has campaigned to end the ability of ‘cowboy’ operators to continue duping consumers. The organisation has long called for a licensing scheme to prevent rogue traders continuing to operate after they have been caught.

Brian Berry, Chief Executive of the FMB said: “Having work done to your home can be one of the most important, and often expensive, investments a person makes in their lives. For too long in Britain, ‘cowboy builders’ have been ripping people off and providing poor-quality services. The UK is behind many other countries by not requiring builders to be licensed, which leaves consumers at risk of choosing incompetent and/or unscrupulous tradespeople.

“It is very positive that the CMA will have stronger enforcement powers to investigate trader recommendation sites that are not complying with their obligations. We now need to see the Government implement the recommendations of the Grenfell Report and introduce a mandatory licensing scheme to set minimum competency standards for building companies.”

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