Retail ombudsman set up to aid consumer disputes

[Legal Beagles]

A retail watchdog led by an ombudsman has been set up to resolve disputes between shops and customers.The service – which is voluntary for retailers – can be used by consumers after they have made a complaint to the company and the issue is not resolved.Barrister Dean Dunham, who begins work as ombudsman on 1 […]

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[EXC]

Re: Retail ombudsman set up to aid consumer disputes

It's not clear where the Retail Ombudsman has got it's mandate from. It makes a vague reference to a new EU directive ''that will significantly increase the use of alternative dispute resolution (ADR) in retailer to consumer contracts'' but doesn't say what it is.

I wonder if they can handle complaints about Civil Recovery?

[enaid]

Re: Retail ombudsman set up to aid consumer disputes

the website

http://www.retail-ombudsman.co.uk/

We cannot deal with any of the following:

• Disputes involving an financial institution (i.e. Bank, loans)
• Disputes involving a motorised vehicle
• Disputes involving services surrounding properties (i.e. estates/letting agents)
• Disputes involving Utility providers (i.e. Gas, Water, Gas, Electricity, Phone)
• Disputes involving professional services (i.e Solicitors, accountants)
• Disputes involving a trades person or company
• Disputes involving furniture, home improvement or flooring goods or services (which should be directed to the Furniture Ombudsman)

Furniture Ombudsman

http://www.thefurnitureombudsman.org/

[dogtired]

Re: Retail ombudsman set up to aid consumer disputes

A liitle concerned as at least one of the companys they list is no longer trading and went " in administration" some time ago ( Comet)

[Amethyst]

Re: Retail ombudsman set up to aid consumer disputes

Seems to be a voluntary ''ombudsman'' service - like DEMSA for DMP providers.

Looks like they can only really deal with complaints from sellers who pay the £2000 a year subs, and that Dean Dunham guy is a columunist in the Sunday People. Classy.

''The ombudsman service will overseen by an independent board chaired by leading businessman and government adviser Sir Eric Peacock.'' http://thesamewavelength.com/speakers/sir-eric-peacock/

Wikipage http://en.wikipedia.org/wiki/Retail_...ted_Kingdom%29 Doesn't seem to be intedned for about much more than supermarkets.

Background

The UK Competition Commission (as of 1 April 2014 the Competition and Markets Authority) undertook an investigation of grocery retail in 2009, and recommended that government establish a retail ombudsman.^[2]
Trade magazine and website Retail Week reported that in response to calls for submissions to the Competition Commission investigation, three major UK retailers Waitrose, Marks & Spencer and Aldi supported the establishment of a retail ombudsman, while Tesco, Sainsbury's, and a number of major retailers did not support its establishment.^[3]
In the lead up to the United Kingdom general election, 2010, the then Conservative shadow minister for Environment, Food and Rural Affairs Nick Herbert indicated that a Conservative government would create an ombudsman to resolve disputes between retailers and primary producers.^[4]
Establishment

According to its website The Retail Ombudsman was established in 2014, and is affiliated with the British and Irish Ombudsman Association.^[1]
References

• "About The Retail Ombudsman". The Retail Ombudsman. Retrieved 20 April 2014.
• "Competition Commission calls for retail ombudsman". The Daily Telegraph (Telegraph Media Group). 4 August 2009. Retrieved 20 April 2014.
• Faithfull, Mark (5 June 2009). "Waitrose gives last-minute show of support for retail ombudsman". Retail Week (Emap International Limited). Retrieved 20 April 2014.
• "Conservatives pledge supermarket food watchdog". BBC News (British Broadcasting Corporation). 5 January 2010. Retrieved 20 April 2014.

External links

• Official website

[Amethyst]

Re: Retail ombudsman set up to aid consumer disputes

A liitle concerned as at least one of the companys they list is no longer trading and went " in administration" some time ago ( Comet)

Indeed, seems an odd thing to have when creating press around themselves, on their full page they say

''
Retailers signed up to the Retail Ombudsman Scheme

WE WILL BE PUBLISHING THE LIST OF RETAILERS SIGNED UP TO THE RETAIL OMBUDSMAN SCHEME NEARER OUR LAUNCH IN JANUARY 2015.
''


So seems like this is a bit of a second attempt at getting going.

I wouldn't get too excited.

[teaboy2]

Re: Retail ombudsman set up to aid consumer disputes

It's not clear where the Retail Ombudsman has got it's mandate from. It makes a vague reference to a new EU directive ''that will significantly increase the use of alternative dispute resolution (ADR) in retailer to consumer contracts'' but doesn't say what it is.

I wonder if they can handle complaints about Civil Recovery?

I believe they are referring to this - http://europa.eu/rapid/press-release_MEMO-11-840_en.htm

No different to PayPal dispute resolution service or any other online based resolution service. Its (The so called retail ombudsman) won't really change anything regarding online retail then, and i doubt many highstreet shops will sign up other than the major brands that have not yet ceased trading!

[EXC]

Re: Retail ombudsman set up to aid consumer disputes

I believe they are referring to this - http://europa.eu/rapid/press-release_MEMO-11-840_en.htm

No different to PayPal dispute resolution service or any other online based resolution service. Its (The so called retail ombudsman) won't really change anything regarding online retail then, and i doubt many highstreet shops will sign up other than the major brands that have not yet ceased trading!

Yes according this badly written paragraph on the Retail Ombudsman site:

The Retail Ombudsman When the legislation comes into effect within the UK, the expectation is that all consumer facing sectors will have a recognised body in place that can independently help to resolve disputes. These services will be assessed by a competent authority to ensure they meet the necessary requirements.

I was wondering who the competent authority is?

[teaboy2]

Re: Retail ombudsman set up to aid consumer disputes

Yes according this badly written paragraph on the Retail Ombudsman site:



I was wondering who the competent authority is?

Yeah i'd like to know that too! not only that, but i was wondering just which UK legislation they are referring to? Especially if its supposedly voluntary for merchants to sign up!

Not very transparent are they?!

[EXC]

Re: Retail ombudsman set up to aid consumer disputes

Looks like they can only really deal with complaints from sellers who pay the £2000 a year subs, and that Dean Dunham guy is a columunist in the Sunday People. Classy.

Top consumer rights lawyer Dean Dunham, who has played a key role in setting up the free and independent service to be launched next month, says its creation is long overdue, reports the Sunday People.

Fancy that.

http://www.mirror.co.uk/money/person...llions-4760440

[teaboy2]

Re: Retail ombudsman set up to aid consumer disputes

Fancy that.

http://www.mirror.co.uk/money/person...llions-4760440

Very misleading article considering it says "The Retail Ombudsman will have the power to investigate complaints about products and services at high street and independent shops, retail businesses like petrol stations and garden centres as well as shopping websites." - Yet fails to mention they can only investigate those retailers who have signed up under them and therefore fund the service. Which brings in to question how impartial the service would actually be - "You don't bite the hand that feeds you" is the saying that comes to mind!

[Amethyst]

Re: Retail ombudsman set up to aid consumer disputes

Apparently this came into being on 2nd January according to MSE http://www.moneysavingexpert.com/new...launches-today

The 'retail ombudsman' posted an ''update'' on their 18th December Press Release thus

UPDATE – 2 JANUARY 2015
Following a query on the question of the consumer taking their case to court if they fail to win the backing of The Retail Ombudsman, we have provided an answer which we hope leaves no ambiguity.
If the consumer doesn’t win can they go to court afterwards?
If the consumer agrees to be bound by the decision of the caseworker or ombudsman, they cannot then go to court at a later date.
However, if they disagree with the decision of the caseworker or ombudsman, they can either appeal it and then take it to court if the appeal fails. Or by-pass the appeal process and go straight to court.

But still no full list of retailers.

I remain extremely cynical and dubious.

Couple Press articles on them from over Christmas - http://www.express.co.uk/news/uk/549...0-000-shoppers

Their ''Press Officer'' is Neville Thurlbeck - about whom a quick google will tell you a fair bit.


18th Dec Press Release

Firstly I am delighted with the initial response that we have received from consumers and retailers to the launch of The Retail Ombudsman in January 2015. It would appear that it is widely recognised that the existence of an ombudsman scheme in the retail sector is long overdue and that this will be good for both consumers and retailers.
Internally our preparations for launch have gone very well. Briefly:
• We now have a fully constituted Standards Board;
• We have recruited a Director of Communications, Commercial Director and Retail Membership Director, all of whom are now with us;
• We have recruited and fully trained our initial team of caseworkers
• We are shortly moving into our new offices in the Midlands, which is obviously far more cost effective than London
• We have reached 3000 retailer members and counting.
Over the past few weeks we have been asked a number of good questions and in the interests of transparency we thought that it would be good to share those questions and indeed the answers with everyone:
How has TRO been formed?
Ombudsman schemes dealing with complaints against private-sector bodies are typically established in one of three ways:
• Statutory: Established by statute, which gives them a compulsory jurisdiction over specified types of (usually regulated) businesses (for example, the Financial Ombudsman Service and the Legal Ombudsman)
• Underpinned by statute: Specified types of businesses are required to be covered by an ombudsman scheme that meets specified minimum criteria (for example, the Property Ombudsman and Ombudsman Services: Energy)
• Voluntary: Established voluntarily (sometimes after government/consumer pressure) by a particular trade association, but with independent governance (for example, the Removals Industry Ombudsman)
There is no statute that provides a compulsory jurisdiction for an ombudsman in the retail sector. However, the UK is set to implement new EU legislation on alternative dispute resolution (ADR) and as part of this the government is considering making ADR mandatory across all consumer goods and services in the UK (obviously therefore including retailers). At the very least retailers will be obligated to inform their customers of an authorised ADR scheme in their sector.
At present there is no ADR scheme in the retail sector. 18 months ago the concept of The Retail Ombudsman was presented to the Department of Business Innovation and Skills (BiS) who have been charged with implementing the new ADR laws and it was proposed that this could be the ADR solution for the retail sector. Since this time The Retail Ombudsman has worked closely with BIS during its development.
Does TRO also have the same remit/laws as other Ombudsman services?
The simple answer to this question is yes. The Retail Ombudsman has been set up in accordance with the criteria set out by Ombudsman Association (OA), which is the official organisation that validates ombudsman schemes, and has applied to be validated by them. OA have accepted the application and their committee has reviewed it and TRO has launched in January it will be in a position to provide official validation. OA is unable to provide official validation pre-launch, regardless of whether the ombudsman is Statutory, underpinned by statute or voluntary. By way of example both the Legal Ombudsman and Financial Ombudsman were not validated by OA until after their launch.
As part of satisfying the criteria of OA The Retail Ombudsman has an independent standards board chaired by Sir Eric Peacock (a government advisor). The board consists of industry experts, Queens Council, a judge, and ADR experts. Its remit is to ensure that
i) adjudications are both fair and reasonable at all times and ii) The Retail Ombudsman complies with OA criteria and its own constitution.
Is it fair to say that TRO is not a trade body/official Ombudsman
It is fair to say that The Retail Ombudsman is not a 'trade body'. However, there is no definition of 'official ombudsman' so it cannot be described in this way. Further, The Retail Ombudsman i) follows OA criteria and is shortly to be validated ii) has been properly constituted with the same policies, procedures and constitution as other ombudsman schemes and iii) has worked closely with BiS to ensure that it becomes the authorised provider of ADR to the retail sector.
Are decisions binding for both members and non-members
When a retailer joins the scheme they agree to be bound by decisions of the Ombudsman, who can award compensation or other actions such as apology in line with awards that can be made by other ombudsman schemes.
If a consumer makes a complaint about a non-member retailer The Retail Ombudsman will investigate the complaint and reach a determination. However, in these circumstances The Retail Ombudsman will have no power to bind the retailer. That having been said, we consider that many non-member retailers will follow the Ombudsman decisions respecting and recognising that it has been made by an independent tribunal legally qualified and experienced in reaching its conclusions.
Will the retailers join the scheme?
They already are and we think many more will follow, but it will take time as this is a new scheme that retailers need to get used to. They will obviously also need to implement our systems within their current customer services process and procedures.
Like all other sectors the retailers will largely be led by consumer demand. If consumers therefore get behind The Retail Ombudsman and if consumer champions and other outlets that promote consumer rights also get behind the scheme the retailers are likely to listen.
It is also important to remember that retailers also benefit from the scheme as The Retail Ombudsman is an independent and impartial scheme that does not take sides with anyone apart from the party that is in the right. Sometimes this will be the consumer and other times it will be the retailer.
My message is simple, if you want to have a redress scheme in the retail sector, where consumers can take their unresolved complaints to a free ombudsman scheme you must support and get behind this scheme. It will not be perfect on day one, but all consumers and retailers are stakeholders of the scheme and together we can all make it a success

[teaboy2]

Re: Retail ombudsman set up to aid consumer disputes

Apparently this came into being on 2nd January according to MSE http://www.moneysavingexpert.com/new...launches-today

The 'retail ombudsman' posted an ''update'' on their 18th December Press Release thus


But still no full list of retailers.

I remain extremely cynical and dubious.

Couple Press articles on them from over Christmas - http://www.express.co.uk/news/uk/549...0-000-shoppers

Their ''Press Officer'' is Neville Thurlbeck - about whom a quick google will tell you a fair bit.


18th Dec Press Release

UPDATE – 2 JANUARY 2015
Following a query on the question of the consumer taking their case to court if they fail to win the backing of The Retail Ombudsman, we have provided an answer which we hope leaves no ambiguity.
If the consumer doesn’t win can they go to court afterwards?
If the consumer agrees to be bound by the decision of the caseworker or ombudsman, they cannot then go to court at a later date.
However, if they disagree with the decision of the caseworker or ombudsman, they can either appeal it and then take it to court if the appeal fails. Or by-pass the appeal process and go straight to court.

Right???? And how many customers are likely to agree to the ombudsman decision when not in the consumers favor? More so, why are retailers that are members, also not allowed the same privileged. That fact it self makes it somewhat biased, the consumer can disagree despite willingly accepting the ombudsman services, for free of charge, and still take it to court. Yet a membership fee paying retailer is not permitted that luxury? Wheres the fair justice in that?

And then there is this from the article in the Express that you linked too Amethyst:

"With the huge rise in internet shopping, many of the complaints he expects to deal with will concern deliveries. His office has already been contacted by four people whose presents have been left in wheelie bins and then taken away."

So, what does he think he can do about that. Retailers are no responsible for that, the courier company is, as the retailer has met its obligations to ship the products, its the negligence on either the couriers part for leaving items in the wheelie bins, or on the consumers part for giving instructions to do so reference safe place to leave items if they are not at home when they are delivered! Though most retailers require signatures, so if courier left it without signature when a signature is required the courier is at fault and liable for it. First the customer needs to inform the retailer and allow them time to issue a claim with the courier and for the courier to carrying out and complete is investigation and relevent complaints procedure, not go straight to a 3rd party ombudsman.

Tell you what my reply to the ombudsman would be in such cases, where the consumer has not contacted us first or in cases where courier has lost the parcel or left it in the wheelie bin (all items we ship require signature on delivery). It be "**** Off" in polite and no uncertain terms!

My company will deal with consumers disputes directly of through PayPal's resolution service.

All this ombudsman is is a money maker for those running it, in my opinion! Otherwise it would be be free membership, where retailers are only required to pay a surcharge for each decision that goes against them. There should be no charges for claims where the retailer has been found to be in the right!

Hell 100,000 complaints, if 50% where upheld and they charged offending retailers a surcharge of £100 for each upheld complaint, that would be 5 million. Or 2.5million if £50 surcharge.

If they charging up to 2500 per year membership that's a maximum of 7.5 million, bear in mind there membership fee is subject to size of company, employees or stores etc. Then they will probably only get about between 3-5million in membership fees alone. Then you have the charges for each complaint on top of that! 15 million in first year is a reasonable estimate. Who profits from that?

Set aside, say 1 million for running costs, rent, utilities stationary and maintenance costs etc. You then have the 37 case workers, who i estimate are on 30K per year so thats a wage bill of 1.11 million per year. Leaving 13million for additional running costs, and net profit. As for taxes, well do they even have to pay any taxes?

Sorry but there no where near enough financial transparency to convince myself or other independent retailers to sign up to this with such abhorrent fees and charges! Also how can it be legally binding to bind a retailer to a decision they do not agree with. Only a court has that power! so the agreement between ombudsman and retailer is no different to any other contract and the terms of which would face the same standard tests in court!

[des8]

Re: Retail ombudsman set up to aid consumer disputes

[QUOTE=teaboy2;504464]

"With the huge rise in internet shopping, many of the complaints he expects to deal with will concern deliveries. His office has already been contacted by four people whose presents have been left in wheelie bins and then taken away."

So, what does he think he can do about that. Retailers are no responsible for that, the courier company is, as the retailer has met its obligations to ship the products, its the negligence on either the couriers part for leaving items in the wheelie bins, or on the consumers part for giving instructions to do so reference safe place to leave items if they are not at home when they are delivered! Though most retailers require signatures, so if courier left it without signature when a signature is required the courier is at fault and liable for it. First the customer needs to inform the retailer and allow them time to issue a claim with the courier and for the courier to carrying out and complete is investigation and relevent complaints procedure, not go straight to a 3rd party ombudsman.

Tell you what my reply to the ombudsman would be in such cases, where the consumer has not contacted us first or in cases where courier has lost the parcel or left it in the wheelie bin (all items we ship require signature on delivery). It be "**** Off" in polite and no uncertain terms!


Whilst being in sympathy with the main thrust of your comments, Teaboy, as the retailer appoints the courier, delivery IS the retailers responsibility.
The customer's contract is with the retailer and so if courier messes up it is for the retailer to sort it.
The Consumer Contract Regulations make it clear that the seller is responsible for the condition of the goods until they are received by the consumer

[teaboy2]

Re: Retail ombudsman set up to aid consumer disputes

[QUOTE=des8;504502]

"With the huge rise in internet shopping, many of the complaints he expects to deal with will concern deliveries. His office has already been contacted by four people whose presents have been left in wheelie bins and then taken away."

So, what does he think he can do about that. Retailers are no responsible for that, the courier company is, as the retailer has met its obligations to ship the products, its the negligence on either the couriers part for leaving items in the wheelie bins, or on the consumers part for giving instructions to do so reference safe place to leave items if they are not at home when they are delivered! Though most retailers require signatures, so if courier left it without signature when a signature is required the courier is at fault and liable for it. First the customer needs to inform the retailer and allow them time to issue a claim with the courier and for the courier to carrying out and complete is investigation and relevent complaints procedure, not go straight to a 3rd party ombudsman.

Tell you what my reply to the ombudsman would be in such cases, where the consumer has not contacted us first or in cases where courier has lost the parcel or left it in the wheelie bin (all items we ship require signature on delivery). It be "**** Off" in polite and no uncertain terms!


Whilst being in sympathy with the main thrust of your comments, Teaboy, as the retailer appoints the courier, delivery IS the retailers responsibility.
The customer's contract is with the retailer and so if courier messes up it is for the retailer to sort it.
The Consumer Contract Regulations make it clear that the seller is responsible for the condition of the goods until they are received by the consumer

Yes am aware of that, but the statement sounds ambiguous at best its not like they can do anything about the delays in deliveries or parcels going missing due to the Xmas and New Year Rush. As you said its for the retailer to sort with the courier, not for the Ombudsman to sort out! First port of call for the consumer is to the retailer to give the retailer the opportunity to resolve the matter, not go to a third party whom the retailer may or may not be a member off. So i doubt they will get many complaints about deliveries at all. Seems like they are simply taking advantage of the reported delays and delivery problems that have occurred over the last month, merely to promote themselves. When theirs nothing they personally can do about rectifying the issue or parcel not arriving or delivered elsewhere in error, as that's for the retailer to sort!

I had one this morning, where the parcel was delivered across the road to a similar named building. The customer confirmed it wasn't his signature but also stated it may have gone across the road as couriers love to take his parcels there instead. So i asked him to pop across and hey presto, there was his parcel! If he'd gone to the ombudsman straight away, and if i'd been a member, I'd may have been penalised for that as they charge members £45 per complaint apparently, unless the complaint was without merit or spurious. But would the fact the parcel was delivered to the wrong address (across the road) have given merit to their claim, despite the customer now having the parcel?! I sure wouldn't be paying such a fee when the customer has the parcel!