Tweet
This thread is regarding the news article found here - http://legalbeagles.info/bbc-news-re...umer-disputes/
Now whilst am all for more protection for consumers, i do not believe (what appears to be) a private enterprise set up by private individuals appointing themselves as Ombudsmans is the right way to go about it, especially if their focus seems to be more for online transaction disputes. We already have many routes that consumers can go down to get their complaints remedied or money back, such as paypal buyer protection and dispute resolution service, which is free to consumer and merchant, along with similar dispute resolution services provided by similar payment services providers, and of course under the consumer credit act 1974, via charge backs etc. And sales of goods act 1979!
It seems to me that this watchdog is merely a commercial enterprise, evidence of that is they plan to charge merchants that sign up up to £2,600 membership fee (per year i assume) and then £45 for every complaint heard! Thats hardly an incentive for a merchant to sign up if they are to be charge for every single complaint regardless of that's complaints merit (unless they have stated otherwise)!
My view is if they charge £45 for every complaint heard, regardless of whether the complaint had any merit, then that may amount to an unlawful penalty in law. This so called ombudsman is not going to be regulated like other state funded ombudsman's either, effectively making this Ombudsman Judge and Jury, if the retailers signup must obey its final decisions on complaints.
So my question is - Who is going to regulate this (apparently) private enterprise of an ombudsman?
I for sure will not be signing up to this service as i use PayPal as my payment provider which give adequate protections to consumers already, in fact, may be to much, given the amount of decisions that PayPal agrees in consumers favor despite proof items where received or no evidence of them being damaged as claimed etc!
------------------EDIT-----------------
Based on the figures provided in the article on BBC News. There is 170,000 complaints expected to be handled by the ombudsman, at £45 a pop, that is a net profit of £7.65 million per year, without the up to £2,600 membership fee (membership fee varies depending on number stores etc)! Granted wages/salaries and running costs will come out of that, but that's still going to leave a lot of gross profit at the end of the year. Who benefits from that, other than the individuals that are setting this ombudsman up?!
Now whilst am all for more protection for consumers, i do not believe (what appears to be) a private enterprise set up by private individuals appointing themselves as Ombudsmans is the right way to go about it, especially if their focus seems to be more for online transaction disputes. We already have many routes that consumers can go down to get their complaints remedied or money back, such as paypal buyer protection and dispute resolution service, which is free to consumer and merchant, along with similar dispute resolution services provided by similar payment services providers, and of course under the consumer credit act 1974, via charge backs etc. And sales of goods act 1979!
It seems to me that this watchdog is merely a commercial enterprise, evidence of that is they plan to charge merchants that sign up up to £2,600 membership fee (per year i assume) and then £45 for every complaint heard! Thats hardly an incentive for a merchant to sign up if they are to be charge for every single complaint regardless of that's complaints merit (unless they have stated otherwise)!
My view is if they charge £45 for every complaint heard, regardless of whether the complaint had any merit, then that may amount to an unlawful penalty in law. This so called ombudsman is not going to be regulated like other state funded ombudsman's either, effectively making this Ombudsman Judge and Jury, if the retailers signup must obey its final decisions on complaints.
So my question is - Who is going to regulate this (apparently) private enterprise of an ombudsman?
I for sure will not be signing up to this service as i use PayPal as my payment provider which give adequate protections to consumers already, in fact, may be to much, given the amount of decisions that PayPal agrees in consumers favor despite proof items where received or no evidence of them being damaged as claimed etc!
------------------EDIT-----------------
Based on the figures provided in the article on BBC News. There is 170,000 complaints expected to be handled by the ombudsman, at £45 a pop, that is a net profit of £7.65 million per year, without the up to £2,600 membership fee (membership fee varies depending on number stores etc)! Granted wages/salaries and running costs will come out of that, but that's still going to leave a lot of gross profit at the end of the year. Who benefits from that, other than the individuals that are setting this ombudsman up?!
Comment