6.66 Fair, transparent and effective complaints handling processes both protect consumers and empower them in their dealings with CPs and postal operators. 6.67 All CPs in the UK are required under General Condition 14 to have a complaints
code of practice that complies with standards set by Ofcom, and to provide access to an alternative dispute resolution (ADR) scheme approved by Ofcom.
6.68 All postal operators in the UK are required under Consumer Protection Condition 3.2 to have simple, inexpensive and transparent procedures in place for dealing with complaints, which facilitate the fair and prompt settlement of disputes. In addition,
regulated postal operators must have a complaints handling procedure which meets
the requirements of Consumer Protection Condition 3.3, publish a consumer complaints report and be a member of a redress scheme (e.g. an ADR service) approved by Ofcom170.
6.69 ADR and redress schemes are, therefore, an important part of the consumer
experience in communications and postal markets. They examine the evidence and make independent decisions about eligible cases referred to them by consumers whose complaints have not been resolved by the CP or regulated postal operator (in telecoms, this can be after a period of eight weeks)171. Decisions can require the CP or regulated postal operator to take appropriate action to put the matter right, and may also include some form of compensation such as a financial award. This process will usually improve the outcome for those consumers whose complaints might otherwise take too long to resolve or even remain unresolved. It also gives CPs and regulated postal operators additional incentives to improve their own complaints- handling procedures and to resolve complaints quickly and effectively.
Telecoms
6.70 In telecoms, there are two Ofcom-approved ADR schemes: • Ombudsman Services172; and
• The Communications and Internet Services Adjudication Scheme (CISAS)173. 6.71 In 2011 we established a number of new regulatory obligations on CPs to ensure that
consumers can have their complaints resolved quickly and effectively. These took the form of requiring CPs to have in place procedures which comply with certain
170
A Consumer Protection Condition is a regulatory condition imposed in accordance with section 51 of, and paragraph 3 of Schedule 6 to, the Postal Services Act 2011.
171
For complaints about regulated postal services, consumers can go to ADR if the regulated postal operator notifies them that it is unable to resolve the complaint, after the time period the regulated postal operator has specified for resolving the complaint has expired, or if the consumer has been unable to log a complaint with the regulated postal operator despite making reasonable attempts to do so.
minimum standards, including obligations to improve consumer awareness of ADR. Specifically, the obligations require providers to:
• Comply with the Ofcom Code of Practice for Complaints Handling174, which requires them, among other things, to:
o ensure the fair and timely resolution of complaints;
o have certain low-cost options for consumers to make a complaint; and o have a dedicated Code regarding their complaints process, which must be
well-publicised, including being no more than two clicks away from their primary web page.
• write to consumers whose complaints have not been resolved within eight weeks to inform them of their right to go to ADR; and
• include information about the availability of ADR on all paper bills.
6.72 Since the introduction of these new rules, we have monitored complaints to the Ofcom CCT, and have engaged informally with some CPs about their performance in respect of complaints handling. As a result, some individual CPs’ performance has improved, but overall the number of complaints remains at around 700 per month. We have therefore set up new research to support our ongoing monitoring of CPs’ compliance with these obligations, and give us a clearer understanding of any problems. We will use these data to help us assess what more we might need to do in this area during 2013, including enforcement action if appropriate.
6.73 Over the past 18 months, Ofcom has also evaluated whether the two approved ADR schemes still meet our approval criteria. These criteria cover a range of factors including accessibility, fairness and effectiveness. During the course of the review, both schemes introduced a number of improvements. Notably, the schemes and their processes are now more accessible and efficient, with more consumers than ever before using them.
6.74 In addition to the improvements made voluntarily, Ofcom has introduced additional measures to improve the consistency of decision-making across the two schemes. 6.75 Under these measures, the two schemes must follow a set of common principles
when considering consumer complaints. These ‘decision-making principles’ will help safeguard against any potential inconsistencies in the way the schemes deal with and resolve consumer complaints, which should result in better outcomes for consumers. The schemes will develop common compensation guidelines, designed to help them reach consistent and fair decisions when awarding compensation. 6.76 Ofcom will work with the ADR schemes to ensure that the new decision-making
principles are working well in practice, and will keep them under review.
Postal services
6.77 In post, there is one Ofcom-approved scheme: The Postal Redress Service (POSTRS)175.
174
6.78 In March 2012, Ofcom confirmed the new regulatory regime for post, including the consumer protection conditions176. Ofcom will continue to monitor compliance with these obligations and monitor their effectiveness.