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Summary

1.1 Our principal duty under the Communications Act 2003 (“the Act”) is to further the interests of citizens in relation to communication matters and to further the interests of consumers in relevant markets, where appropriate by promoting competition. We also have a specific duty under the Act to set regulation where appropriate for Alternative Dispute Resolution (“ADR”) and Communication Providers (“CPs”) complaints handling procedures.

1.2 ADR and CPs’ complaints handling procedures are an important part of the consumer experience in the communications market. Inadequate or inappropriate procedures can cause significant harm and detriment to consumers.

1.3 For the purposes of this Consultation Document we use the term “consumers” to refer to “Domestic and Small Business Customers”, as defined in the Act as residential consumers and businesses with 10 or less employees (who are not a CP).

1.4 We think that while our current regulation of ADR and complaints handling procedures is successful in many respects, we have identified potential problems around access to ADR. We have also found evidence of general levels of dissatisfaction with CPs’ complaints handling procedures.

1.5 In this Consultation Document we consider a number of different options to address these issues. We put forward the following as our preferred proposals.

ADR

1.6 We propose that improving consumer access to ADR will increase the overall effectiveness of the ADR system.

1.7 We propose that the appropriate ways to improve access are to:

1. reduce the period before consumers have a right to go to ADR from twelve weeks to eight weeks; and
2. give CPs new obligations to tell consumers about ADR.

1.8 We also propose key criteria to use when we undertake our future review of our approval of bodies that provide ADR (“ADR Schemes”). This includes a criteria that ADR Schemes must be “accessible”.

Complaints Handling Procedures

1.9 We propose that CPs should have to comply with a single Ofcom Approved Complaints Code of Practice, instead of CPs having an individual Code of Practice for Complaints which we approve. This single Ofcom Approved Complaints Code of Practice would set out high level minimum standards that a CPs’ complaints handling procedures must comply with. This includes a proposal to limit the amount that CPs can charge for complaints made over the phone.

Record Keeping

1.10 We also propose that CPs should have new record keeping obligations for complaints so that we can request effective information to ensure compliance.

1.11 These are our preferred options. However, we recognise that regulation in this area can have a significant impact on many stakeholders, including consumers and industry. Appropriate regulation should adequately protect and empower consumers while not placing unnecessary burdens on industry.

1.12 To ensure that the interests of citizens and consumers are advanced, it is crucial that we consider the impact of any proposed regulation on all relevant stakeholders. We are committed to a thorough and open consultation.

1.13 We are inviting comments on our proposals and on the other options we have considered by 4 October 2008.

The full document is available below

• Review of Alternative Dispute Resolution and Complaints Handling Procedures [pdf]
  Full Print Version

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