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Probe into business practices launched

RISING complaints of dealers knowingly selling cars with defects, and tradesmen manipulating seniors into parting with cash, have prompted the Consumer Affairs Board to launch an investigation into the business practices of those industries.

And, as a companion fix to bolster consumer confidence and protection, the Board is pushing for the licensing of all tradesmen working on the island and has launched a television commercial to educate seniors on the unscrupulous tactics used by some.

Announced at a press conference yesterday, the inquiry is the first of its kind. As detailed by Consumer Affairs Board chairman Trevor Fyfe, it will specifically target the island's automotive and trades industries, and was initiated because of the high number of grievances lodged since 2001.

"This is the first time that the Board has been compelled to set up special committees to review consumer complaints of specific business practices, but we feel this decision is warranted because the number of complaints we are receiving that are automotive and trades related, has consistently outnumbered all other complaint categories over the past two years," Mr. Fyfe explained.

"The Board believes that the time has come for it to take a tough stance on those businesses and trades that refuse to correct and / or clean up their practices in accordance with the existing Consumer Protection legislation.

"The Board would also like to put errant businesses and trades on notice, that we intend to consult with the Attorney General on ways that we can ? if necessary ? 'name and shame' businesses in order to protect customers."

The Board was able to realise the extent of the grievances through results garnered by its Consumer Satisfaction Survey ? conducted every two years ? and a detailed log of complaints, compiled annually. Those records showed that, in 2003, there were 173 automotive related complaints; in 2004, 169.

Mr. Fyfe cited specific automobile complaints: while the average age of a car with serious defects is three years old, vehicles purchased brand-new, were facing similar problems within a year or less. The defects had largely been noted in newer models of cars he said, adding that they were not limited to any particular brand.

As well, customers were finding it "difficult" to get their cars "satisfactorily" repaired by dealers and, with little chance of redress, many were frustrated. Although consumers are able to take individual complaints to the courts under the Sales & Goods Act, many are "intimidated" by the expense.

"It may well be we have to change the whole legislative process where consumers have some rights. You cannot be abused continually and have no redress. So there may be avenues which are not being practised," he added.

"Despite the mediation and resolution services offered by Consumer Affairs, the number of automotive complaints from consumers continues to be of concern to the Board. A similar situation exists in the trades industry and unfortunately, many of our seniors have become victims of unscrupulous tradesmen ? plumbers, electricians, general contractors, etc. ? who appear at their doors seeking work.

"There are times when our seniors feel they are manipulated and intimidated into parting with their cash for services not rendered, or services that are incomplete."

The chairman said the Board believed that the majority of businesses and trades in Bermuda operated in a legitimate manner.

However, "we can no longer ignore the unscrupulous few that may tarnish the reputations of those good businesses and tradesmen. To that end, the Board will be supporting and promoting the licensing of all tradesmen working in Bermuda."

He added that people should not confuse the Board's intent to see tradesmen licensed with the current practice established by the National Training Board (NTB), which enables certification.

"There is a misconception in the island between being certified and being licensed. The NTB is involved in a certification process that basically (examines) the competence of a tradesperson. That does not preclude that that tradesperson who is competent and certified will not go out into the general public and not act responsibly.

"Licensing is a body that brings all the certified people under an umbrella where there is some type of regulation. You cannot just act as you will within the society. Licensing would be a separate entity that would govern the certified people to make sure that they abide by the laws of decency and professionalism in the practising of their trade.

"Each individual, even if they are not licensed, they will have to work under the umbrella of a company who will hold the licence. So the company sending out these individuals into the workplace will become responsible for anything they might do."

Two special committees have been established to investigate the complaints. Chaired by Allan Young, a Sub-Committee on the Automotive Industry will:

l Investigate the quality and origin of cars being imported into Bermuda.

l Identify the magnitude of problems associated with after-care services as well as the timely importing and availability of parts.

l Look at safety issues surrounding the importation of second-hand trucks and unauthorised repairs.

Explained Mr. Young: "Because consumers aren't particularly clear on what they can and cannot do ? that's part of the educational process that we have to make clear to consumers. When it comes to dealing with a lot of the automotive industry vendors, to take them to court becomes a very expensive project.

"A lot of people are intimidated by that. We're trying to find ways that the consumer can feel comfortable addressing the issues."

A second sub-committee on the Trades Industry will be chaired by David Tavares. It will be asked to:

l Establish the position of the NTB as it relates to licensing trades.

l Seek alternative methods of proving such licensing to enhance customer protection, if the NTB is not moving forward in this direction.

"These sub-committees have been created to "review best business practices, product quality and consumer accessibility to redress", added Mr. Fyfe. "We would also like to invite the public to submit their concerns and suggestions in respect of the Automotive Industry and the Trades Industry ? in writing ? to these sub-committees, so that their views may be incorporated in the final reports that we believe will provide us with a clear road map of the industries concerned and give us recommendations for improvements for business practices, required consumer legislation and/or education."