Competition Watchdog Clamps Down on Trader Websites

CLAMPING DOWN on websites for finding tradespeople, the Competition and Markets Authority (CMA) has set out new rules.

The trader websites are being given dos and don’ts to stay on the right side of the law.

Websites and apps are being increasingly used by the public to find a tradesperson to carry out work on their home.

Some sites operate like a ‘matchmaking’ service where householders post the work they need and traders respond.

Other database, search or listing sites allow householders to look up local tradespeople and businesses.

Endorsed Traders

The CMA is concerned that the public assume or are misled into thinking the traders are checked or rated as trustworthy and 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 such organisations will act if the tradesperson they employ carries out substandard work.

Trade sites are often used by people to find and connect to 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 a listed trader carries out is not satisfactory, the consumer often finds the listing site used has no power – or interest – in helping.

Check Trader Websites

CMA’s George Lusty said: “We’ve seen worrying evidence suggesting people could be misled into thinking these sites actually check traders – and will take action when things go wrong – which isn’t the case.

“That’s why we’re creating advice: to make sure trader recommendation sites know what their obligations are under consumer law and what they need to do to protect people using their sites.”

Working with Trading Standards, the CMA has been looking at how these sites operate. They identified a number of concerns that could harm consumers.

Rated Traders

CMA says concerns include the websites:

• making potentially misleading claims – or creating the misleading impression – that a trader can be trusted, when in fact the platform does not vet or monitor traders
• failing to have appropriate vetting or verification processes in place for traders using their site or app
• failing to deal appropriately with and sanction problematic traders
• not operating effective and accessible complaints processes
• presenting consumer reviews in a misleading way and failing to take appropriate steps to remove fake reviews

To tackle these issues, the CMA has drafted advice for trader recommendation sites so they understand their obligations under consumer protection law.

Misleading Consumers

It sets out six key principles sites should follow to protect consumers:

1. ensure that claims about services and the traders on their sites are clear and accurate, and do not mislead consumers
2. conduct appropriate checks before traders are allowed to advertise on their site
3. have accessible, transparent, and effective complaints processes
4. effectively monitor the performance of traders on their site
5. act effectively on issues highlighted by complaints or monitoring activities, including imposing sanctions
6. have an effective, transparent and impartial process concerning online consumer reviews

Mike Andrews, part 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.”

The CMA is allowing comments until 16 August 2024 after which a finalised version of the advice will be issued, together with practical tips to consumers on how to safely use trader recommendation sites.

>> Read more about trader websites in the news