News: Competition watchdog calls for stricter standards on trusted trader sites

The Competition and Markets Authority (CMA) has issued a firm warning to recommendation and trusted trader websites, urging them to adopt stringent standards to protect consumers from rogue operators in the home improvement sector. The call follows a comprehensive CMA investigation, conducted in collaboration with national trading standards, into the practices of popular platforms like Trusted Trader and Checkatrade.

According to the CMA, an estimated 800,000 people each year suffer from negative or financially harmful experiences after hiring a trader for home improvement work, with losses averaging £1,800 per customer—though individual cases can reach much higher sums.

Despite the growing popularity of trader recommendation sites, the CMA has highlighted a number of serious concerns. These include misleading claims regarding a trader’s trustworthiness, insufficient vetting processes, and inadequate complaint procedures. The CMA’s latest guidance advises these platforms to verify any claims about a trader’s quality with evidence, conduct risk-based assessments, and, where necessary, carry out criminal record checks.

“This guidance is aimed at ensuring only reputable tradesmen are endorsed by trusted platforms, protecting consumers from unscrupulous operators,” said George Lusty, Executive Director for Consumer Protection at the CMA. “While many businesses are fully trustworthy, rogue traders damage the reputation of legitimate tradesmen and mislead the public.”

However, Lusty was quick to note that the guidance is not yet legally binding. New regulations, expected in April, will grant the CMA the authority to impose fines of up to 10% of global turnover on websites failing to comply with consumer protection laws. Until then, consumers are advised to perform their own research to verify a trader’s credibility, even if listed on a trusted platform.

In the meantime, the CMA has stressed the importance of vigilance for anyone using a recommendation platform. “Don’t assume a trader is reliable simply because a website says so,” said Lusty. With the new powers on the horizon, the CMA’s guidance sends a clear message to trusted trader platforms: adapt to these standards or face serious financial penalties.

With rogue traders continuing to target homeowners across the UK, consumers and traders alike are now looking to the CMA’s next steps.

Why it matters: In the UK the rising popularity of ‘find-a-tradesmen’ websites has created a wide network of options. They provide homeowner will a means to search and find tradesmen, while tradesmen have a platform to advertise their services. The problem is questions have been asked over the validation of tradesmen. The owners of the websites have developed a lucrative revenue stream charging large numbers of tradesmen to promote their businesses. Often homeowners are drawn in by the expectations theses tradesmen have been vetted in someway. Many are indeed checked, however many slip through the net. The operators of these websites should be audited and made to guarantee all featured tradesmen are checked. This will also have a positive impact on the reputable firms that are listed. Hopefully things will tighten-up as these website come under the spotlight of the CMA.

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