OFT to crack down on cross-border fraudsters

UK consumers are to get more protection against cross-border fraudsters within the European Union (EU) with a new regulation that comes into force this month.

Under the Consumer Protection Co-operation (CPC) regulation, a network of national enforcement bodies with the powers to work together across the EU has been formed.

The aim is to give UK consumers better redress against rogue traders in EU member states. It should also mean more effective action can also be taken to stamp out the big cross-border scams and frauds; this will include spammed emails conning people with fake lottery wins, prize draws, phone scams as well as misleading advertising or pressure selling, said consumer minister Ian McCartney.

McCartney said: "Crooks and fraudsters who prey on unsuspecting consumers are the lowest of the low. No longer will they be able to rip off large numbers of people and then hide behind borders, beyond the reach of the enforcers.

"Joined up enforcement across the EU will help to stamp out scams and leave the sharks with nowhere to hide. Consumers can then have greater confidence, while legitimate businesses are protected from rogues in the marketplace."

The UK's co-ordinating enforcement body will be the Office of Fair Trading (OFT).

While the OFT already protects consumers against scams in the UK, it can be difficult to bring the fraudsters in other European Union member states to justice because of national barriers as well as gaps and differences in cross-border enforcement policies.

Now the CPC, which was adopted by the European Commission on 18 July 2003 and which comes into force in the UK this month, requires national enforcement bodies to help each other by exchanging information and co-operating on cases.

The new regulation will also allow the OFT to ask the relevant enforcement authorities to take action within their own countries to stamp out infringements of EC consumer legislation and vice versa.

Welcoming the new role, OFT chief executive John Fingleton said: "The OFT has been closely involved in developing the Consumer Protection Co-operation Regulation and we welcome the opportunity to play a proactive role in implementing it in the UK.

"We believe that CPC will improve the effectiveness and enforcement of consumer legislation across Europe, and we particularly welcome the fact that member states will now find it easier to request action overseas on behalf of consumers.

"This is all the more important as a great many consumers make cross-border purchases over the internet, or buy goods when travelling abroad.'