CMA tips: How to navigate finding a ‘recommended’ trader online
The CMA has issued a set of tips for people finding traders via a recommendation site, as well as finalising its advice to the sector.
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CMA arms consumers with tips to help them navigate trader recommendation sites
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CMA issues finalised advice for trader recommendation sites on how to stay on the right side of the law – as well as publishing a practical ‘dos and don’ts’ crib sheet
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Consumer tips and business advice followed a deep dive into the sector, conducted by the CMA and 4 key consumer authorities: NTS, TSS, SCOTSS and TSNI
Trader recommendation sites are websites and apps that help people to find and connect with traders, such as builders, plumbers, and heating specialists. Specifically, they recommend traders to consumers, often stating that those advertising on their site have been vetted or assessed on the quality of their work.
As more and more people use these websites, the Competition and Markets Authority (CMA) has published a set of useful tips to help people choose a trader recommendation site that safely connects them to a trustworthy trader – and importantly, protects them if things go wrong.
The CMA has also finalised its advice for trader recommendation sites as it pushes the sector to ensure all businesses comply with consumer law. This means all sites should have a clear idea of their obligations under consumer law, meaning they can offer their service responsibly and make sure they’re acting on the right side of the law.
With the CMA set to receive stronger enforcement powers from next spring, trader recommendation sites that are not complying with their obligations risk facing a formal investigation.
Helping people: Consumer tips
The CMA’s tips seek to arm consumers with handy and practical guidance to use when selecting a trader recommendation site:
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Don’t rely solely on claims of ‘trustworthiness’ made on trader recommendation sites – many sites use terms like ‘trusted’, ‘reliable’, or ‘expert’ to describe traders, but these may not be true or verified
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Choose a trader recommendation site that verifies traders by ensuring they have the necessary licenses, insurances, and certifications
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Make sure the site has a strong complaints process and check whether it offers support in resolving disputes
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Check how trader recommendation sites monitor traders and sanction poor behaviour, and if rogue traders are removed
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Be cautious about reviews – check if they are badged as being from verified customers
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Once you have found a reliable site, compare traders before deciding – don’t rush into selecting a trader, but review several, taking into account important details like experience, qualifications, certifications, and verified customer reviews
Hayley Fletcher, Interim Senior Director of Consumer Protection, said:
Millions of people use these sites to find a trusted and skilled trader, but that’s not always what they get. We’re arming consumers with a handy set of tips to use while navigating trader recommendation sites to help them find a legitimate and reliable trader.
We’ve also issued advice for the sector – meaning sites should be entirely clear about what they should and shouldn’t do when it comes to consumer law. Not only does this help protect consumers, it also means that the thousands of reliable and honest professionals who rely on these sites to connect with customers are competing on a level playing field.
We expect all trader recommendation sites to carefully read the advice and review their practices. We’ll be monitoring the sector to see if more action is needed.
Dos and don’ts for trader recommendation sites
Alongside the consumer tips, the CMA has finalised its guidance for trader recommendation sites, following a sector-wide consultation.
The advice sets out the key principles sites should follow to make sure they stay on the right side of the law. Not only will this mean consumers are better protected, but it will help ensure there is a level playing field for qualified and reliable traders – who should no longer find themselves competing on recommendation sites with traders who are not properly vetted.
To help trader recommendation sites get to grips with the advice, the CMA has also issued a top-level crib sheet. This distils the guidance, breaking each principle down and giving simple examples of dos and don’ts.
Mike Andrews, National Coordinator for the National Trading Standards eCrime Team, said:
Protecting consumers and honest business is at the heart of everything we do and we’ve welcomed the work CMA and partners have done to get this guidance in place. It marks the start of trader recommendation sites ensuring they vet and verify traders more carefully and take consumer complaints more seriously.
With the guidance finalised and by following these tips, consumers can now be more confident about getting the right plumber, plasterer, or roofer for the job, while genuine traders will no longer miss out on jobs that might otherwise have gone to illegitimate ones.
Case studies
Case study 1
A consumer used a trader recommendation site to find a trader to complete a job in their garden, paying out over £800. The trader never showed up and, according to the consumer, the site advised that it does not ‘hold responsibility’ for what happened.
Case study 2
A consumer needing guttering work done used a trader recommendation site to find a trader. They turned out to be a rogue trader and the individual lost around £2,000. The consumer tried to make a complaint to the trader recommendation site, but was unable to do so via email or via telephone.
For more information about the CMA’s work in this space, visit the Trader recommendation sites consultation page.
Notes to editors
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Media enquiries should be directed to [email protected] or 020 3738 6460.
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The consumer tips and business advice come after the CMA and 4 key consumer organisations – National Trading Standards (NTS), Trading Standards Scotland (TSS), The Society of Chief Officers of Trading Standards in Scotland (SCOTSS), and Northern Ireland Trading Standards (TSNI) – analysed the conduct of trader recommendation sites across the sector and identified a number of concerns. These included misleading claims about traders’ performance; a lack of effective vetting; and poor complaints and sanctions processes.
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The tips above are an abridged version of the full tips, which can be found here: Consumer tips: what to consider when using trader recommendation sites.
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Figures from the Department for Business, Energy & Industrial Strategy published in 2022, claimed unscrupulous traders cost homeowners around £1.4billion a year.
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Trader recommendation sites, for the purpose of this Compliance Advice are defined as businesses that: a) operate a website or app that consumers may use to find a trader, either in the form of a ‘matchmaking’ service – in which consumers can post the work they require and traders can respond – or a database, search engine (general or specific to traders) or listing service (or similar); and b) recommend traders, by which the CMA means represent (implicitly or explicitly), or otherwise create the perception or expectation, that the traders listed or hosted on the platform, or with whom matches may be made, are of a particular quality and/or are trustworthy, reliable, or suitable for the consumer’s requirements.
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NTS receives government funding to commission local authorities in England and Wales to conduct specific pieces of work and take action in serious consumer protection enforcement cases. TSS performs a similar role in Scotland. SCOTSS is the professional body representing the heads of service for trading standards services in Scottish local authorities. TSNI is the single trading standards service covering the whole of Northern Ireland.
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In February 2016, the CMA issued an open advisory letter to trader recommendation sites. The final compliance guidance replaces the advice in this advisory letter.