Propertymark is calling for clarity over changes to the enforcement of consumer protection laws.

From this week the Competitions and Markets Authority will be able to decide whether consumer protection laws have been breached without having to take businesses to court, and they can enforce such decisions with fines and redress.

This has happened as a result of the Digital Markets, Competition and Consumers Act (DMCC), which passed into law a year ago, and which contains provisions to prohibit unfair commercial practices, replacing and updating the Consumer Protection from Unfair Trading Regulations 2008. 

The legislation hands direct enforcement powers to the CMA, giving it the authority to act on breaches of consumer protection rules, including requirements for providing material information.

Propertymark submitted responses to two consultation exercises held before this week’s change. 

A statement from the agents’ trade body says: “Our primary concern about the draft guidance is that it is ambiguous about issues directly impacting the property sector. It is not explained exactly how the new guidelines will replace the existing rules – for example it does not explicitly cover material information, which is a legal obligation for agents under the 2008 regulations.  

“It is also unclear how the CMA will interact with the National Trading Standards Estate and Letting Agency Team (NTSELAT), which until now has been primarily responsible for the regulation of estate agency work in the UK and letting agency work in England.

“The draft guidance states that in England, Wales and Northern Ireland prosecutions will generally be conducted by the CMA, Trading Standards Services, or the Department for the Economy in Northern Ireland. In Scotland, prosecutions are conducted by the Crown Office and Procurator Fiscal Service. Propertymark has discussed the issue with NTSELAT who state that they and local Trading Standards teams will still have power to enforce Consumer Protection legislation.

“We believe that the role of each authority needs to be clearly defined and separated. 

“For example, it would be sensible for NTSELAT to take on individual breaches of regulations and the CMA to look at more serious offences such as ongoing miss-selling. But without this distinction clearly defined in the guidance there is no clear path for consumers to seek action.”