By: Luke
Consumer Voice - will the Ofcom Consumer Panel become part of the proposed new super-consumer body?
First we had the super-regulator now the government has proposed the super-consumer group - Consumer Voice.
In a move that might see the Ofcom Consumer Panel moved into a joint consumer body the Government has launched a consultation on how consumer advocacy and representation is structured.
As proposed in the consultation a new body dubbed ‘Consumer Voice’ would carry out the duties currently carried out by the National Consumer Council (NCC), Energywatch, Postwatch, Ofcom Consumer Panel and the Financial Services Consumer Panel.
The consultation document which is entitled - “Strengthen[ing] and streamlin[ing] consumer advocacy” - aims to assess the benefits and costs associated with the integration of these consumer bodies.
Certainly Energywatch and Postwatch have come under considerable criticism in recent times for offering little value to consumers. They have budgets of �13 million and �10.2 million respectively, which is supposed to allow them to offer full service advice and adjudication services to consumers.
Comparably the Ofcom Consumer Panel is something of minnow with a budget of �655,000 - although the panel doesn’t have to provide advice or adjudication services. It primary role is to input into Ofcom’s work, offering a consumer perspective during consultations and the decision making process.
The Panel does this despite Ofcom’s statutory remit, as established by the Communications Act 2003, being “to further the interests of consumers in relevant markets, where appropriate by promoting competition”. So bearing in mind what they say about too many cooks spoiling the broth, Ofcom must have a bloody big kitchen to have both the regulator and an advisory panel in it all at the same time!
Although the DTI’s consultation makes some sense given the obvious scope for efficiencies and the establishment of a single voice in the consumer space, it does also serve to highlight how closely tied consumer bodies are to the Government. All of these organisations consider themselves ‘independent’ voices, which makes it all the more interesting that the Government is able to restructure them however and whenever it chooses.
The United States has a well developed consumer advocacy lobby. It’s tied neither to government or business. Perhaps the scope of consumer resources in the UK wouldn’t able to support such bodies (although Which? seems to do alright).
Of course, you needn’t spend a lot to get a decent voice - maybe the Government should look at low cost, genuinely independent advocacy channels like this one and assess consumer’s ability to put pressure directly on regulators (and in some instances public representatives such as MPs) without having to have a publicly funded body do it for them.

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