GovWire

Consumer protection in green heating and insulation sector

Competition Markets Authority

July 16
11:48 2024

Timetable

Date Action
16 July 2024 Final compliance advice for businesses published
7 June 2024 Consultation letter issued to Worcester Bosch
21 February 2024 Update on the standards landscape
24 January 2024 Consultation on draft compliance advice for businesses closed
13 December 2023 Consultation on draft compliance advice for businesses opened
17 October 2023 Worcester Bosch investigation launched
21 July 2023 Response to the MCS consultation on proposed scheme changes
31 May 2023 Findings report, consumer guide and principles for standards bodies published
27 September to 1 November 2022 Call for information questionnaires
27 September 2022 Project launched

Publication of final compliance advice

16 July 2024: The CMA has published its final advice for businesses marketing green heating and insulation products, to help them to understand and comply with their existing obligations under consumer law.

Alongside the compliance advice, the CMA has also published some short videos and checklists for businesses summarising the principles which are designed to help them comply with the law.

The CMA has also published the responses to its consultation on draft compliance advice for businesses on the marketing of green heating and insulation products.

Consultation letter issued to Worcester Bosch

7 June 2024: The CMA has issued a letter (referred to in the relevant statute as a consultation letter) to Bosch Thermotechnology Limited (Worcester Bosch) formally putting it on notice of its concerns in relation to possible breaches of consumer protection law. The letter details the CMAs specific concerns about whether Worcester Boschs marketing claims relating to its hydrogen-blend ready boilers (that is, boilers that can run on a blend of up to 20% hydrogen) mislead consumers. The CMA has asked Worcester Bosch to take steps to address these concerns. Worcester Bosch now has an opportunity to respond to the CMAs letter.

Update on the standards landscape

21 February 2024: The CMA has published a progress update on how the landscape of standards bodies that oversee quality and consumer protection standards in the sector have taken forward our good practice principles.

Overall, standards bodies have engaged positively with the principles. However, more still needs to be done to improve the levels of consumer protection. Standards bodies should continue to push forward with changes that are needed to improve their practices.

We recognise that standards bodies alone cannot address all the concerns we identified. The CMA will therefore continue to work with UK government to take forward our steers to help improve consumer protection in the sector.

Consultation on draft compliance advice now closed

24 January 2024: The CMA is currently considering responses to its consultation on draft consumer law compliance advice for businesses marketing green heating and insulation products to consumers.

This draft compliance advice aims to help businesses understand and comply with their consumer law obligations. The CMA has produced this draft compliance advice following concerns we identified about some businesses in the sector: (i) making potentially misleading claims about green heating and insulation products; and/or (ii) providing limited and inconsistent upfront price information, as set out in our call for information findings report.

Investigation launch

The CMA has opened an investigation into Bosch Thermotechnology Limiteds (trading as Worcester Bosch) compliance with consumer protection law. The CMA is investigating Worcester Boschs marketing claims about its so-called hydrogen-blend ready home boilers.

This follows our findings report which highlighted concerns that a number of businesses in the green heating and insulation sector were making potentially misleading claims online about hydrogen use in boilers and put the sector on notice for further action.

The CMA has also written to 12 other businesses to warn them that they could be breaching consumer protection law after reviewing their marketing to consumers, and to remind them of their legal obligations.

Consumer awareness campaign

The CMA has produced a video as part of a social media campaign to remind people about their consumer rights and the key questions to ask when buying a new green home heating or insulation product, such as a heat pump or solar panels. The video signposts people to the CMAs more detailed consumer guide published earlier this year.

Response to the MCS consultation

The CMA has published its response to the Microgeneration Certification Schemes consultation on proposed changes to its scheme.

Call for information: findings and next steps

The CMA has published a report setting out the findings from its call for information on consumer protection in the green heating and insulation sector. We looked at three key themes - peoples experience of buying green heating and insulation products; business practices and the landscape of standards bodies which provide quality assurance and consumer protection standards for member businesses. We have identified concerns in these areas and the report sets out actions to help address these.

We have also published a consumer guide to assist people when buying green heating and insulation products, which sets out a summary of their key rights and protections under the law; and a set of good practice principles for standards bodies, to help raise the level of protections in the sector.

The CMA will continue to engage closely with stakeholders to share our findings and to take forward actions to help tackle the issues we have identified.

We will also be carrying out further work in this sector, focusing on business practices - in particular we will be looking at misleading and greenwashing claims made by businesses about their products. At this stage, the CMA has not reached a view as to whether consumer protection law may have been broken.

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