Best practice requires that organisations do have a procedure for dealing appropriately with consumer complaints. According to the British Standards Institution, one of the leading suppliers of management systems, codes of conduct should form part of an effective approach to complaints management. And the International Standards Organisation has recently published ISO 10001, a guideline for codes of conduct for organizations of all sizes, to compliment ISO 10002 which provides guidance on internal complaints handling systems.

This is entirely consistent with the consumer’s right to be heard and to obtain redress, which is one of the rights that the Consumer Protection Bill seeks to advance.  The Bill does this by creating and empowering new structures tasked to help consumers to give effect to this right of redress. Surprisingly, the Bill does not include a requirement that suppliers have an appropriate system for receiving and dealing with consumers’ complaints.

But perhaps best practice on listening to complaints and providing redress has not been overlooked by the drafters of this legislation. Tucked away in section 82 of the Consumer Protection Bill is a stipulation that industry codes of conduct must be consistent with the purposes and policies of the Bill. The same section gives the relevant Minister, acting on the recommendations of the Consumer Commission, the power to impose codes of conduct on industries and to make them legally enforceable. This provides the Minister with an inexpensive and effective way to advance consumer welfare through consensual resolution of disputes arising from consumer transactions. After all, this is no more than best practice.

Ian is one of the people who dreamed up getclosure! He has a background in dispute resolution and financial services. Click here to read more Ian and other members of the getclosure! team.