Dodgy goods and confusing bills costing Scots £4bn a year
Industry watchdogs have warned the public about inferior goods and services costing them huge amounts of money.
Dodgy goods and services cost Scottish consumers around £4billion last year according to a shocking new report by industry watchdogs. Unreliable broadband, confusing electricity and gas bills, late or cancelled trains and problems with online shopping are some of the everyday problems leading to the massive financial hit.
Consumer Scotland has said 70 per cent of people report problems with each incident leading to a loss averaging around £30.
Its report concluded that ' consumer detriment ' was worst in the second hand car market, with issues also causing people endless stress and taking up huge amounts of time.
Director of Research and Analysis David Eiser said: 'The survey is important in helping to highlight the scale and nature of detriment in Scotland, as well as the UK.
'The findings demonstrate that detriment remains both pervasive and persistent with high levels of consumers experiencing consumer harms at a cost to their health, wellbeing and finances.
'The survey also found that consumers in vulnerable circumstances are more likely to both experience detriment and to not seek redress when things go wrong.
'It is vital consumer organisations are aware of the changing nature of consumer detriment to allow them to provide support where detriment is high, as well as identifying and advocating for solutions.'
Around seven in ten consumers in Scotland experienced at least one incident of harm with almost 20 million incidents in Scotland
The total annual net cost to consumers in Scotland of this harm is estimated to be up to £4 billion.
The highest rates of harm are experienced by consumers who engage in the second-hand vehicle market, followed by childcare, public transport, internet services and electricity and gas.
In addition to financial costs consumers can suffer emotionally with approximately half of detriment incidents in Scotland associated with a negative impact on mental health with consumers feeling anxious, helpless and upset.
Consumer Scotland said people frequently take action to rectify detriment, but amongst those who do around half result in either no financial compensation or less than what was requested.
The agency last year launched an investigation into companies selling domestic green energy systems like heat pumps to identify areas where consumers may be vulnerable to misleading or unfair practices.
Chief Officer at Trading Standards Scotland, Fiona Richardson, welcomed the probe and said: 'Although the transition to decarbonised and energy-efficient homes promises significant benefits we must combat scams, product mis-selling, and rogue trading in the sector.'
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