Contents

• Background
• Remit
• Membership
• Operations
• Impact

BACKGROUND

The UK has used different models to provide for a consumer protection voice in the case of regulated industries. In some cases, the consumer interest has been totally independent of the regulator - this was the case with EnergyWatch in relation to Ofgem and with PostWatch in relation to Postcomm (both bodies now merged into Consumer Focus). While this model provides evident independence for the consumer body, it often tends to promote an antagonistic and confrontational relationship between the consumer body and the relevant regulator.

A different model has been used in the case of financial services and the Communications Act effectively replicates this model for broadcasting and telecommunications. So, while the Communications Consumer Panel - known for its first five years (2004-2008) as the Ofcom Consumer Panel - is statutorily independent of the regulator, it is Ofcom which appoints the Panel members (subject to appproval by the Secretary of State) and Ofcom provides the venue, staffing, and funding for the Panel's work.

Sections 14-19 of the Communications Act concern "Functions for the protection of consumers". Sections 14 & 15 deal with conducting and publishing consumer research, while all the other Sections deal with the Consumer Panel.

Section 16(2) provides for the establishment and maintenance of the Consumer Panel

REMIT

Section 16(3) makes clear that the Panel is concerned with the interests of domestic and small business consumers in relation to 11 matters which can be summarized as follows:

• the provision of electronic communication networks
• the provision of services and facilities
• the supply of apparatus
• the supply of directories
• the financial and other terms on which such services, facilities, apparatus and directories are supplied
• the standards of service, quality and safety of such services, facilities, apparatus and directories
• the handling of complaints by companies providing such services, facilities, apparatus and directories
• the resolution of disputes between consumers and companies providing such services, facilities, apparatus and directories
• the provision of remedies and redress in respect of matters that are the subject of such complaints or disputes
• the information about service standards and the rights of consumers made available by companies providing such services, facilities, apparatus and directories
• any other matter appearing to the Panel to be necessary for securing effective protection for consumers

Section 16(5) makes it clear that the Panel is not able to give advice on any content broadcast or transmitted by electronic communications networks. This is the responsibility of the Content Board.

Equally the Panel is not concerned with individual consumer complaints which are a matter for the provider, the alternative dispute resolution procedure, and (for advice) Ofcom itself.

Section 19 provides that the Secretary of State can add to the remit of the Panel - subject to consulting Ofcom and obtaining Parliamentary approval for an Order-in-Council - but cannot reduce the remit.

The role of the Panel was characterised by the Joint Committee on the draft Communications Bill as to be "the conscience, not the creature, of Ofcom".

MEMBERSHIP

Sections 17(1) & 17(2) provide that all Panel members are to be appointed by Ofcom and approved by the Secretary of State (in practice, both the Secretaries of State for Business, Enterprise & Regulatory Reform and for Culture, Media & Sport - and in relation to the members for Scotland, Wales and Northern Ireland the appropriate 'national' Secretary of State).

Section 17(3) requires that there be Panel members for England, Scotland, Wales and Northern Ireland and Section 17(4) requires that Panel members are able to give advice on the interests of rural users, urban users, small businesses, disadvantaged persons, those with low incomes, those with disabilities, and the elderly.

For the first four years (2004-2007), the Panel was chaired by Colette Bowe. Since January 2008, it has been chaired by Anna Bradley [click here]. Ruth Evans [click here] will stay on as Deputy Chair until January 2009. The Panel membership was reconstituted in September 2008 and the other members are:

• Fiona Ballantyne* [click here] - the member for Scotland
• Louisa Bolch [click here]
• Kim Brook [click here] - the member for Wales
• Colin Browne [click here]
• Roger Darlington* [click here] - the member for England
• Maureen Edmonson [click here] - the member for Northern Ireland
• Leen Petre [click here]
• Damian Tambini [click here]
• Bob Warner [click here]

OPERATIONS

The Panel meets monthly, usually at Ofcom Headquarters.

Sections 16(8) & 16(9) provide that Ofcom must supply the Panel with all the information it requires to fulfil its duties, unless that information is commercially sensitive.

Section 16(10) requires Ofcom to advise the Panel and other relevant parties if Ofcom disregards the advice or opinion of the Panel in whole or in part.

Section 16(6) provides that the Panel may commission its own research.

Section 16 (11) provides that the Panel must publish an annual report of its activities.

IMPACT

It is difficult to assess the impact of the Panel, partly because so much of its work is 'behind the scenes', partly because Ofcom is subject to so many other representations and pressures, and partly because there are inevitably lots of other changes in Ofcom (notably a new Chief Executive). However, Panel members would like to feel that the influence of the Panel can be seen in three significant developments affecting Ofcom:

• In its first few years, Ofcom was focused overwhelmingly on supply-side issues, principally the promotion of competition and choice - for example, the Telecoms Strategic Review and the Digital Dividend Review. There is now more emphasis on demand-side issues, such as consumer protection, enforcement and empowerment - for example, enforcement regimes and media literacy programmes.

• Originally (January 2004), Ofcom had no dedicated consumer policy resource. Then, in September 2005, the Consumer Policy team was created with Claudio Pollack as Director and six other professional staff. Now (November 2008) that team consists of 13 professionals – plus one graduate on rotation – so we have seen a doubling in size.

• Originally (January 2004), Ofcom had no systematic way of factoring the consumer interest into its policy-making. In 2006, Ofcom implemented a Consumer Interest Toolkit devised by the Consumer Panel through PricewaterhouseCoopers. In late 2008, Ofcom adopted “a process of refresh” on the Toolkit led by Katie Hanson.

• The promotion of the need for specific help for sections of the community in the process of Digital Switchover – the report to DCMS in November 2004, representations to DigitalUK, and attendance at the Consumer Expert Group all resulting in the Help Scheme and the Digital Outreach Scheme.

• The highlighting of the issue of broadband speeds being lower than advertised – the open letter to the top six ISPs in October 2007 resulting in a voluntary code of practice being promoted by Ofcom and accepted by most of the industry.

ROGER DARLINGTON

Last modified on 17 November 2008

Links:
Full text of the Communications Act click here
"An Introduction To The Communications Act" click here
"An Introduction To Ofcom" click here
Ofcom web site click here
Communications Consumer Panel web site click here
Memorandum of Understanding between Ofcom and Consumer Panel click here
Ofcomwatch weblog click here
CommsWatch weblog click here