Head of Which accuses Government of seducing consumers with choice
Today, Peter Vicary-Smith, Chief Executive of Which, will deliver a speech at the Consumer Policy Institute saying that the Government is set on using consumers to deliver many of its policy objectives.
In his speech, Peter Vicary-Smith, Chief Executive of Which?, will say: "I think we should all be concerned when simple ostensibly-attractive ideas start to take the place of fully thought-out policies based, above all, on an understanding of consumers' needs , preferences and capacities. Choice is a small word, but it has massive implications. "...people really want access to quality services. Because choice is frankly meaningless if the choice is between one failing school and another, between one dentist that won't register NHS patients and another, or between different stakeholder pensions which offer the same high charges, and the same high risk." The recently-appointed Vicary-Smith will accuse the Government of pushing 'seductive messages' of choice. While Which? supports the principle of offering choice to people, it is critical of the Government's policy-wide approach which does not always deliver quality services and fair markets on consumers' terms. Many people prefer to limit their decision-making. Research* shows that on trips to the supermarket nearly 70 per cent of people say they try to get through the trip as quickly as possible and rely on brand familiarity, habit and recognisable store layout to scale down the decisions they have to make. The Government hails more choice in health and education as signs of improvement. But Vicary-Smith will say the pensions market is a classic case which illustrates the downfall of relying on choice is not based on consumers' terms. The Government has handed people the responsibility of providing the bulk of their financial security in retirement. However the industry is littered with: confusion marketing; financial advisers in pursuit of commission and sales targets and "scant regard to consumer needs". The consumer watchdog is putting together a major programme of research, to be completed next March, on people's attitude to choice, what it means to them and the barriers they face. Financial News Feeds provided by OneCompare.com
Date published: 12/2/2004 9:31:20 AM
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