WLR Consumer Issues Task Group 5 th August 2002 Consumer Protection in CPS CPS Marketing Code of Practice Claire Robinson - Centrica

HISTORY Requirement identified following proposal for removal of the Reply Slip Formal working group established in Jan ’02 –Representatives from BT, Powergen, Telco, TXU, npower, Virgin and Centrica Detail developed during first 6 months of the year Industry-wide consultation in late April/early May, seeking comments on: –General approach/likely support –Status of the Code (internal –v- external monitoring) –Scope (residential/small business;CPS/all telecoms) –Costs

SCOPE OF THE CODE Lifecycle of sales agents –Recruitment –Training –Identification –Conduct –Performance monitoring –? Remuneration Customer Contact –Guidelines for dealing with vulnerable customers, minors etc –Information to be provided to consumers –Contact hours –Literature –Auditing and monitoring of customer contact Remedies –Managing complaints –External management and monitoring of compliance –Range of penalties for breach of Code requirements

ISSUES Establishing the Code Appropriate administration body Funding Scope – CPS only? All fixed telecoms? All communications (incl. Internet, mobile etc)? Support – likely membership

CONCLUSIONS FROM WORKING GROUP Joint approach with energy industry –Mandate from DTI/Ofgem to establish robust self- regulatory scheme within 6 months Direct Marketing Association (DMA) identified as preferred Code Administrator –Established, credible organisation –Industry neutral –Existing expertise in managing Codes of Practice –Experience in Doorstep and Field sales Option for Telecoms companies to adopt best practice guidelines as interim measure

NEXT STEPS Energysure accreditation scheme in place Energy Code to be finalised Sept ’02 Scheme must be in place by Dec ’02 Code to be industry/product neutral Process for incorporating telecoms to be determined – aim to have telecoms aspects in place simultaneously with energy (e.g. Dec ’02)