{"id":3956,"date":"2013-09-27T14:26:37","date_gmt":"2013-09-27T14:26:37","guid":{"rendered":"http:\/\/www.tayloremmet.co.uk\/blsblog\/?p=125"},"modified":"2013-09-27T14:26:37","modified_gmt":"2013-09-27T14:26:37","slug":"dispute-update-september-2013","status":"publish","type":"post","link":"https:\/\/www.tayloremmet.co.uk\/blogs\/dispute-update-september-2013\/","title":{"rendered":"Dispute update – September 2013"},"content":{"rendered":"

Hello,<\/p>\n

Welcome to Dispute Update, Taylor&Emmet\u2019s bulletin looking at the best ways to avoid, handle and win business disputes.\u00a0 This month\u2019s Boardroom Briefing considers what to do when Trading Standards officers arrive on your business\u2019s doorstep.\u00a0 As usual, we\u2019ll be giving a round-up of some of the more interesting recent cases for the benefit of in-house lawyers. Don\u2019t forget that our interactive workshop on handling small claims takes place on 10 October.\u00a0 Following the recent Jackson reforms, company directors, credit managers and in-house lawyers will find themselves attending small claims hearings more often.\u00a0 If you\u2019d like some practical advice on how to represent your business in court, please click here. As always, if you do have any queries, please feel free to contact us.<\/p>\n

Boardroom Briefing<\/strong><\/p>\n

One of the occupational hazards faced every day by consumer-facing businesses is interference from local authority trading standards teams.\u00a0 For most well-run businesses, a visit from trading standards will come as a shock; it\u2019s something most of you won\u2019t face every day.\u00a0 Most investigations are triggered by complaints from customers, often but not always without justification.<\/p>\n

Any sensible business that deals with consumers will have a culture of achieving customer satisfaction.\u00a0 If there is a complaint, most will then have procedures in place to deal with it.\u00a0 Sometimes, you can bend over backwards to help a consumer and still it doesn\u2019t work.\u00a0 The angry customer can cause havoc.\u00a0 Some will seek redress through the civil courts; others will involve trading standards.<\/p>\n

Trading standards departments are operated by local authorities and aren\u2019t organised into one national body.\u00a0 They have far-reaching investigatory and regulatory powers and can pursue prosecutions which, if successful, can see company directors and employees fined or even imprisoned.\u00a0 They can also have a negative impact on your business\u2019s reputation and shake consumer confidence.<\/p>\n

Trading standards have powers to investigate a wide range of offences related to consumer credit, product safety and labelling, weights and measures, copyright and so on.\u00a0 Crucially, they also have very wide powers under the Consumer Protection from Unfair Trading Regulations 2008.\u00a0 These regulations outlaw unfair commercial practices, which include misleading or aggressive sales practices and business activities which fall short of professional diligence.<\/p>\n

Professional diligence is a grey concept.\u00a0 It encompasses a wide range of activities, from the fraudulent to the mere incompetent, provided it is deliberate or reckless.\u00a0 That means your business might make a simple mistake in its dealings with a customer and find itself on the wrong end of a prosecution.<\/p>\n

Usually, the first time you will know that your business is under investigation is when you receive a letter from trading standards officers explaining the nature of the complaint and inviting a director to attend an interview under caution.\u00a0 An interview under caution is simply a formal, recorded interview at the start of which you are told:<\/p>\n

\u201cYou do not have to say anything. However, it may harm your defence if you do not mention when questioned something which you later rely on in court. Anything you do say may be given in evidence.\u201d<\/em><\/span><\/p>\n

You don\u2019t have to attend the interview.\u00a0 Trading standards have no power of arrest if you decide not to go.\u00a0 On the other hand, if you don\u2019t attend, it may not present the right image for your business and it also denies you the opportunity to explain your position.\u00a0 It\u2019s usually best to co-operate as fully as possible with trading standards.\u00a0 If you really don\u2019t want to go, you may be able to persuade trading standards to carry out their investigation in correspondence, but they rarely agree!<\/p>\n

It\u2019s usually best to have a solicitor present during the interview but you don\u2019t have to.\u00a0 Your solicitor\u2019s job is to make sure that procedures are followed correctly and that you aren\u2019t asked inappropriate questions.\u00a0 Whoever attends, you should always make sure that at the start of the interview you ask the trading standards officers to explain what your business is alleged to have done wrong.<\/p>\n

You should answer any questions honestly but you can decline to answer if you wish.\u00a0 You should be aware that negative inferences may be drawn if you don\u2019t answer a question.\u00a0 Your answers may later be brought up in court if a prosecution follows.\u00a0 Things the officers will be looking for include evidence that:<\/p>\n