Consumer empowerment
Consumer empowerment strategy
The Government launched its 'Consumer Empowerment Strategy; Better Choices: Better Deals. Consumers Powering Growth' on 13 April 2011.
Download Better Choices: Better Deals - Consumers Powering Growth
(PDF, 761 Kb)
The strategy sets out what Government and others can do to help increase consumer power in a rapidly changing and demanding economy. It aims to put consumers in charge so that they are better able to get the best deals for themselves, individually and collectively.
It also looks at ways of helping the most vulnerable and disadvantaged who may not otherwise benefit from rapid technological and social change.
An innovative non-regulatory approach, working in partnership with businesses, consumer groups and 3rd sector bodies, it will contribute to economic growth by putting information and influence into the hands of consumers.
The report is split into four sections:
A new project ‘midata’ will give consumers more control and access to their personal data.
As service providers and retailers, many businesses store purchasing information about their customers. Government wants to work with these businesses to come up with a solution that allows consumers to access this information, analyse it according to their own preferences and make better choices.
The aim is for data to be portable and safe. Consumers can choose how to share this data to take advantage of the growing number of computer and phone Apps that can tell them how to find a better deal, or provide more information about their spending habits. Consumers will not have to share or access data and Government will not see any of the data.
A working group of business, consumer and privacy groups, and computer App developers will look at how to release data in an open reusable format. They will also look at privacy, security and legal issues.
Did you know:
There are 12.7 million different phone deals to choose from, and a survey from Billmonitor shows that the average mobile phone user overspends by £200 a year. Using the personal data a phone company holds, such as whether a customer uses all their minutes or exceed their internet allowance, could help consumers to find a better deal.
Feedback loops
Consumers are increasingly able to provide feedback on service, which can in turn affect business performance. Business will respond to this increased consumer engagement by being increasingly innovative and competitive, which will stimulate economic growth for the benefit of all.
Government will develop a quality mark for web and comparison sites that have clear and transparent consumer-feedback. This will enable consumers to know they can trust the feedback they read.
Collective Purchasing
The Government will support collective purchasing – the power of the crowd to collaborate and get the best deals.
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A BIS/Co-Operatives UK Innovation Prize on collective purchasing will be launched in order to stimulate new collective purchasing deals - this has since been taken forward through the Buy Better Together Challenge. For further details as well as case studies and a discussion forum on, see the Community Buying website
Business will be integral to supporting collective purchasing:; there will be a pilot on collective purchasing in green deals to save consumers money with B&Q - now under way.
BIS will build a toolkit for community organisers and others to facilitate collective purchasing, including clear advice on insurance and legal issues - now published, see Guide for Community Buying Groups (PDF, 2.3 Mb) .
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Did you know:
- 9.2 million adults in the UK have never accessed the internet and only 62% of adults have shopped online in the last year.
- Consumers who do not use the internet, pay on average £560 more a year for household services.
The Government wants to ensure that everyone has access to better choices and that the most vulnerable are empowered.
Citizens Advice, Citizens Advice Scotland and Consumer Focus have been asked to conduct a joint review, creating a new, strategic approach to helping the most vulnerable consumers.
BIS will also be looking at a new resolution scheme for online and e-commerce disputes.The Cabinet Office, in partnership with Argos, will run a trial on the impact of providing access to consumer feedback in stores.
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This is a new approach and marks a shift away from legislating to make change happen. Instead it announces new ways to help consumers help themselves and challenges business to innovate, which in turn will drive growth in the economy.
Instead, working in partnership with business, consumer, and voluntary groups the Government has rolled out new initiatives and achieved momentum faster than if it had used a more traditional approach. This includes:
- Extending the Responsibility deal to new areas.
- Building on Every Business commits.
- Improving customer service through professional standards.
- A shift in the style of consumer protection.
Every Business Commits
This is an innovative project that encourages businesses to focus on five priorities:
- Reduce carbon and protect the environment.
- Improve skills and create jobs.
- Support your community.
- Improve quality of life and well-being.
- Support small and medium-sized enterprises.
Find out more about Every Business Commits
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