GovWire

Trader recommendation sites are websites and apps that help people to find and connect with traders, such as builders, plumbers, and heating specialists. Specifically, they recommend traders to consumers, often stating that those advertising on their site have been vetted or assessed on the quality of their work.

As more and more people use these websites, the Competition and Markets Authority (CMA) has published a set of useful tips to help people choose a trader recommendation site that safely connects them to a trustworthy trader and importantly, protects them if things go wrong.

The CMA has also finalised its advice for trader recommendation sites as it pushes the sector to ensure all businesses comply with consumer law. This means all sites should have a clear idea of their obligations under consumer law, meaning they can offer their service responsibly and make sure theyre acting on the right side of the law.

With the CMA set to receive stronger enforcement powers from next spring, trader recommendation sites that are not complying with their obligations risk facing a formal investigation.?

Helping people: Consumer tips

The CMAs tips seek to arm consumers with handy and practical guidance to use when selecting a trader recommendation site:

1. Dont rely solely on claims of trustworthiness made on trader recommendation sites many sites use terms like trusted, reliable, or expert to describe traders, but these may not be true or verified

2. Choose a trader recommendation site that verifies traders by ensuring they have the necessary licenses, insurances, and certifications

3. Make sure the site has a strong complaints process and check whether it offers support in resolving disputes

4. Check how trader recommendation sites monitor traders and sanction poor behaviour, and if rogue traders are removed

5. Be cautious about reviews check if they are badged as being from verified customers

6. Once you have found a reliable site, compare traders before deciding dont rush into selecting a trader, but review several, taking into account important details like experience, qualifications, certifications, and verified customer reviews

Hayley Fletcher, Interim Senior Director of Consumer Protection, said:

Millions of people use these sites to find a trusted and skilled trader, but thats not always what they get. Were arming consumers with a handy set of tips to use while navigating trader recommendation sites to help them find a legitimate and reliable trader.

Weve also issued advice for the sector meaning sites should be entirely clear about what they should and shouldnt do when it comes to consumer law. Not only does this help protect consumers, it also means that the thousands of reliable and honest professionals who rely on these sites to connect with customers are competing on a level playing field.

We expect all trader recommendation sites to carefully read the advice and review their practices. Well be monitoring the sector to see if more action is needed.

Dos and donts for trader recommendation sites

Alongside the consumer tips, the CMA has finalised its guidance for trader recommendation sites, following a sector-wide consultation.

The advice sets out the key principles sites should follow to make sure they stay on the right side of the law. Not only will this mean consumers are better protected, but it will help ensure there is a level playing field for qualified and reliable traders who should no longer find themselves competing on recommendation sites with traders who are not properly vetted.

To help trader recommendation sites get to grips with the advice, the CMA has also issued a top-level crib sheet. This distils the guidance, breaking each principle down and giving simple examples of dos and donts.

Mike Andrews, National Coordinator for the National Trading Standards eCrime Team, said:

Protecting consumers and honest business is at the heart of everything we do and weve welcomed the work CMA and partners have done to get this guidance in place. It marks?the start of trader recommendation sites?ensuring they ?vet and verify traders more carefully and take consumer complaints more seriously.

With the guidance finalised and by following these tips, consumers can now?be more confident about getting the right plumber, plasterer, or roofer for the job, while genuine traders will no longer miss out on jobs that?might otherwise have gone?to illegitimate ones.

For more information about the CMAs work in this space, visit the Trader recommendation sites consultation page.

Notes to editors

1. Media enquiries should be directed to?press@cma.gov.uk or 020 3738 6460.

2. The consumer tips and business advice come after the CMA and 4 key consumer organisations National Trading Standards (NTS), Trading Standards Scotland (TSS), The Society of Chief Officers of Trading Standards in Scotland (SCOTSS), and Northern Ireland Trading Standards (TSNI) analysed the conduct of trader recommendation sites across the sector and identified a number of concerns. These included misleading claims about traders performance; a lack of effective vetting; and poor complaints and sanctions processes.

3. The tips above are an abridged version of the full tips, which can be found here: Consumer tips: what to consider when using trader recommendation sites.

4. Figures from the Department for Business, Energy & Industrial Strategy published in 2022, claimed unscrupulous traders cost homeowners around 1.4billion a year.

5. Trader recommendation sites, for the purpose of this Compliance Advice are defined as businesses that: a) operate a website or app that consumers may use to find a trader, either in the form of a matchmaking service in which consumers can post the work they require and traders can respond or a database, search engine (general or specific to traders) or listing service (or similar); and b) recommend traders, by which the CMA means represent (implicitly or explicitly), or otherwise create the perception or expectation, that the traders listed or hosted on the platform, or with whom matches may be made, are of a particular quality and/or are trustworthy, reliable, or suitable for the consumers requirements.

6. NTS receives government funding to commission local authorities in England and Wales to conduct specific pieces of work and take action in serious consumer protection enforcement cases. TSS performs a similar role in Scotland. SCOTSS is the professional body representing the heads of service for trading standards services in Scottish local authorities. TSNI is the single trading standards service covering the whole of Northern Ireland.

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