More Power To Consumers

New laws introduced in May 2008 is said to have broaden the scope within which compensation claims can be made. The law banned some 31 practices and widened the rules under which consumers can seek compensation; most importantly it outlaws and makes illegal information which if given deceives the average consumer into making a transaction they wouldn’t have taken.

These laws were welcomed by the National Consumer Council (NCC) but the committee complained that it wasn’t sufficient as it didn’t allow consumers to claim compensation when treated unfairly by businesses it however allows agencies like the Office of Fair Trading to take action against businesses who trade unfairly.

The new laws also have major impact on sexual discrimination laws in the UK; it gives more power to employees than ever before. This makes customer based business like bars, pubs and stores more vulnerable, under the law pubs owners, bar managers and store owners risk large compensation claims if customers make their staff uncomfortable. The Government's Commission for Equality and Human Rights has been given the authority to enforce this law. A spokesman for the Commission said: "When employers know that harassment is going on they are in a position to do something about it."

The law holds bosses responsible for the protection of their staff from loud sexist remarks and harassments by customers. Those who fail to do so risk unlimited amount of compensation claims.

Of course lawyers have argued that this law will especially cost small businesses more money as they have to be the ones to prove they have clamped down on harassment by customers at their places of business.

Not only will businesses lose money because of introduction of these laws but it is bound to have a negative effect on customer relations for businesses like bars, restaurants, bars, pubs who depend on repeat businesses through rapport with customers. If employers clamp down on interactions between employees and customers because of fears of being sued for compensation then they lose business anyway.

Behaviors deemed as harassment will be decided by a tribunal, employees will have to prove that they were upset over a particular incident or comment whilst owners of businesses have to prove that they did everything in their power to clamp down on harassment at their work places. This may lead to employers hanging signs instructing what type of conversation is acceptable between customers and employees.

The new laws also made changes to the way compensation claims can be made by victims of miscarriages of justice under the Criminal Justice and Immigration Act 2008 (CJIA). This follows the abolition of the ex gratia scheme last year, which meant that people like the Birmingham Six and the Guildford Four would not be eligible for any state compensation at all if their convictions were overturned today.

The changes also cut back payments to victims of miscarriages of justice, claiming that £5m will be saved each year from the £10bn spent each year operating the criminal justice system. A "miscellaneous" section of the act also deals with "other criminal justice provisions"; the new law caps compensation payouts at £1m for those who have suffered more than a decade of wrongful incarceration, and £500,000 in any other case. It even allows the independent assessor to reduce payments to a nominal sum on account of previous convictions.

These new laws have been hailed by Human Right Groups as move in the right direction of enhancing citizens and consumer rights.

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