Designed to tackle cross-border schemes to defraud consumers,
the CPC Regulation focuses on some emerging scams, such as those
using email and phone calls to mislead consumers.
"Crooks and fraudsters who prey on unsuspecting consumers are
the lowest of the low," said Ian McCartney, the Consumer Minister
at the Department of Trade and Industry (DTI). "No longer will they
be able to rip off large numbers of people and then hide behind
borders, beyond the reach of the enforcers."
The CPC Regulation was passed in 2004 in order to create a
network of consumer protection and public enforcement bodies to
prevent people using borders as a barrier to their discovery,
though it applies only to intra-Community infringements of consumer
protection legislation.
In the UK the Office of Fair Trading (OFT) has been chosen as
the authority which will be the UK's arm of the network. Each body
has new powers to engage in cross border investigations of rogue
traders. The OFT performs that function in the UK already.
"We believe that CPC will improve the effectiveness and
enforcement of consumer legislation across Europe," John Fingleton,
OFT chief executive, said when it was appointed the UK's authority.
"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."
The network will investigate traditional activity such as the
dishonest selling of time share and holiday club products, but many
of the target activities depend on new communication methods, such
as email and phone scams and illegal prize draws that can be
advertised and conducted online.
"Joined up enforcement across the EU will help to stamp out
scams and leave the sharks with nowhere to hide," said McCartney.
"Consumers can then have greater confidence, while legitimate
businesses are protected from rogues in the marketplace."
