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Leon Livermore former CTSI CEO talks to Helen Dewdney Part 2

I talk with former CEO of Chartered Trading Standards Institute (CTSI), Leon Livermore, in a series of exclusive interviews. In the first one we discussed his achievements and challenges at CTSI.

Today we talk about his opinions on CTSI’s monitoring and approval of Alternative Dispute Resolution (ADR). We explore the difficulties with implementing what he would have liked and what he would like to see happen.

Leon in his kitchenThe background to ADR criticism

Leon Livermore was the CEO of the CTSI for almost 8 years, until March 2021.

I’ve met him a few times at various events and sort of got on! I say “sort of” because over the years I co-wrote two research reports on Alternative Dispute Resolution. (ADR). The first was Ombudsman Omnishambles:  Serious unresolved issues affecting the operation of the ombudsman ADR system in the UK . The second was More Ombudsman Omnishambles: The UK ADR landscape 20 months on… These were were highly critical of the CTSI and of CAA in particular for their approval and monitoring of ADR schemes.

Report cover CDRL, CTSI, CAA, OA, Dean Dunham,

Report cover CDRL, CTSI, CAA, OA, Dean Dunham,

 

 

 

 

 

 

So, I thought it would be interesting to have a chat about his time at CTSI and challenge him on some of that ADR stuff too!

ADR – did Leon let the bad guys in? What happened about “Fit and Proper” people running schemes and more?

Leon was talking about the good guys and letting the bad guys in in some areas. Which led me straight into asking if he let them in! (The reports referred to a number of providers that could be considered “bad guys” and Leon was referring to some providers and also companies that were members of providers.)

In 2015 the ADR regulations came into force.

Fit and proper person test

Leon stated that the regulations came into force when the EU membership vote was coming and that everything was “We don’t gold plate regulations”. So the EU ADR regulations were transposed as they were. He hopes that with the Consumer Command Paper that is expected soon, that there is a chance to put some things right. The Ombudsman Omnishambles reports discussed the need for a “Fit and Proper” person test.

He acknowledged that there was an opportunity to put some robustness in and that there is certainly something around a “fit and proper” test that should now be undertaken. I challenged him on the CTSI not putting this test in place, particularly when we first called for this in February 2016. He said that “…if it had been us, we would have put a fit and proper test in, let’s be very clear on that.”

Auditing ADR providers

“Auditing to a standard that was put in place centrally” meant that the CTSI was not able to do anything about the implementing “fit and proper person” or do anything arbitrarily he says. He would like to see a fit and proper person test implemented for both the organisation and individual people involved.

Pushed on how much input the CTSI had on this, Leon said that they “tried to work with the civil servants there”. Political policy was to transpose and not add anything. Although other countries did, and the opportunity was missed. When directly asked who put a stop to introducing a “fit and proper person” test when civil servants seemed keen, Leon was very clear that it was Parliament. It just went straight for the transposition. The opportunity was missed. He hopes that the Consumer Command Paper will give the opportunity to correct some of the issues.

Future for the fit and proper person test

I also asked Leon what he would recommend if a provider that was already approved then failed the “fit and proper person” test. He replied “You can’t have an F&P test and then give authorisation to someone who isn’t fit and proper. But that needs to be balanced with an appropriate and graduated disciplinary process. So, the ultimate sanction would be revocation of approval and loss of “accreditation”. There would also need to build a safeguard of right of appeal. But you want to work through a process where you issue improvement notices etc.”

We observed here that it would make sense for both the ADR and Ombudsman systems to be working to the same standard to avoid any confusion for consumers.

Former CTSI CEO Leon Livermore talks about the need for a fit & proper person test in ADR provision

Differing standards for ADR providers

We spoke about the Ombudsman Association expelling a provider and the CTSI keeping the provider approved. Leon agreed that the OA standards were higher than CTSI’s. Although he referred to this as not unusual (for trade bodies and other sectors to have slightly higher standards in their own sector than in the public sector) he didn’t think it was acceptable.

Ombudsman Association standards compared with CTSI

He strongly believes that the “Fit and Proper Person” test within ADR should align with the “Fit and Proper Person” tests used by the OA and within the Codes scheme. He thinks that the Command Paper is an opportunity to achieve this. He would say the standard should be open to consultation but the OA standard sits above the competent authority’s.

For the Command Paper he would say that the OA had to be the standard but that there should be one standard across all schemes. This should be open to challenge and be consulted on. “It happens to be in this case that the OA’s standards sit higher than the CTSI and so it should be that one which is the starting point.”

I pushed Leon on whether there would have been providers that weren’t approved had the standards he’d wanted been in place. He said that there would have been audits that highlighted that they were sitting beneath the standards but would have had to be given a chance to raise their game, for fairness.

However, he also said “There were people who were signed off that wouldn’t have complied with the higher standards definitely”. Pushed on that therefore meaning that they would not have been signed off he argued that they wouldn’t have been submitted in the same form.

“There certainly would have been providers we would have had to do some work with to get them to the higher standard and we would have hoped to get them there”, he added.

Former CTSI CEO chats ADR standards with Helen Dewdney

 

Did the CTSI have sufficient powers for the approval and monitoring of ADR providers?

When asked if he felt that the CTSI wasn’t given enough powers to approve and monitor bodies, Leon said that it was interesting and the first answer was “Yes” but that there was an advantage to not having those powers.

This advantage meant that they had to get things agreed by consensus. So, that this has given a better working relationship with CTSI and providers. But he still thinks that “fit and proper”, mandating certain sectors and using trade associations are used in the best way for consumers and conflicts of interest that aren’t swayed in favour of businesses are essential for making improvements.

Asked directly if CTSI was stopped from putting in higher standards for ADR, Leon was quite clear. “Yes, because we were auditing to someone else’s standards.”

He accepted that the Ombudsman Association had higher standards than the CTSI and although he says it is not unusual for a trade body to have higher standards than those that sit in the public sector, he also doesn’t think it is acceptable and hopes that the Command Paper will provide the opportunity to address some of the shortcomings.

Former CTSI CEO Leon Livermore talks about powers and standards regarding ADR providers

Should ADR be mandatory?

Colleagues in the consumer world and I have been calling for ADR to be mandatory for years, so I asked Leon for his thoughts on this. Although he would like to see it mandatory across all sectors, he recognises that this is very unlikely to happen. He would, however, like to see it mandatory in the home improvement and motor sectors. His concern in those particular areas relates to the greater impact on people’s lives, so he would tend to prioritise the high value items.

More creatively, Leon wonders if we can work with all the sectors and bodies such as TrustMark to almost mandate ADR in the energy efficiency sector. This would work to drive up quality and consumer confidence. He sees this area as being one of the biggest challenges, and currently a “hidden” issue. It has to be Government policy driving it, he says, as consumer power will not achieve it.

Consumers and Vulnerability

Vulnerability plays a big part too, Leon believes. Almost anyone is vulnerable when they buy expensive items, such as a house, home improvement or car. These are the areas where there is an inbuilt vulnerability and Leon calls for a coherent Government strategy that emphasises their importance, so we cannot leave it to the market place.

With austerity coming, having to pay for the EU exit, Covid and an ageing population, businesses will cut corners having to make difficult choices.

“Where is the strategy?” Leon asks.

One of Leon’s biggest frustrations is the opportunity Government had with the EU exit in getting businesses and consumer groups in the same room to talk about what the issues are. He talks more about this in the video:

Former CTSI CEO Leon Livermore discusses making ADR mandatory with Helen Dewdney

 

Did anyone really understand the ADR regulations?

I asked Leon if he thought consumers understood the ADR regulations and he said that he didn’t even think that the regulators and business understood them!

Regarding businesses, Leon talked about having to accept that the regulatory bodies would have to set their standards lower than they would want. This is because it would be better to have the businesses inside a scheme. Giving the example of the Property Ombudsman, he praised their work, saying that it included some businesses CTSI  would never like but that it was better for them to be inside a scheme, so that their standards could be improved.

He noted that to only use enforcement at that bottom end is really expensive.

Not alone in raising concerns

Acknowledging that I was not alone in sending concerns to the CTSI, Leon said that there would be something to assess providers against if the standards are right. Not only would he like to get the standards for provider approval and monitoring right, he would also like to acquire the ability for people to challenge it.

He asks whether people like myself and Which? should have the ability to make a “super complaint”. This is so we can say that we don’t believe that a provider is giving good enough service. Which? amongst other consumer bodies already does have powers to make a super complaint in the consumer world. More about making a super complaint here. I think it unlikely that individual consumer champions will be given the same powers!

Former CTSI CEO Leon Livermore discusses understanding of the ADR Regulations with Helen Dewdney

Are there too many ADR providers and what about that consumer portal?

Leon sees both sides but leans towards leaving it open to a number of providers to compete.

I challenged Leon on this, pointing out the confusion that consumers have already regarding ADR. It is made worse by the fact that some local Trading Standards cover ADR, they cover different sectors, others are sector based etc? A point covered in the reports. He agreed that it is confusing for consumers but suggests that Citizen’s Advice (CA) should be responsible for a portal that directs consumers to the different options available.

After pointing out that we suggested such a portal in our Ombudsman Omnishambles reports in 2015(!), I asked Leon what had happened to this? After firstly saying it was terrible that he found himself agreeing with me so much (hehehe) he blamed Government funding and policy.

However, he says that the only thing that is stopping this from happening now is organisations looking after what’s in their best interests and not the best interests of consumers. He feels quite strongly that the different providers, trade associations etc. are all competing and that they could all signpost to the one portal. Leon says CA has funding, it just needs the co-operation of providers and other organisations.

Leon Livermore former CTSI CEO discusses number of ADR providers & single portal with Helen Dewdney

Next time in the interview series

Look out for the next episode where Leon and I talk about his criticisms of Government, what should be done and priorities for consumers.

 

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Talking Trading Standards – with Leon Livermore, former head of CTSI

I talk with former CEO of the Chartered Trading Standards Institute (CTSI). Leon Livermore, in a series of  interviews. In the first one we discuss his work at CTSI.

Leon in his kitchen

What is the CTSI?

Leon Livermore was the CEO of the CTSI, for almost 8 years until March 2021. The CTSI works with the Government, UK and EU Parliamentary institutions, businesses, consumer organisations and other regulatory bodies to maintain and improve customer protection. It is also responsible for reinforcing fair markets and supporting businesses in their legal duties, competitiveness and success.

Businesses need to be aware of/members of the CTSI as it helps them understand their legal obligations and enhances their reputation, profile and performance.

I’ve met him a few times at various events and sort of got on! I say “sort of” because over the years I’ve co-written two research reports on Alternative Dispute Resolution. (ADR) [1]. Both of these were highly critical of the CTSI and CAA, in particular, for their approval and monitoring of ADR schemes.

So I thought it would be interesting to have a chat about his time at CTSI and challenge him on ADR too!

When The Complaining Cow chatted with the former CTSI CEO Leon Livermore

 

The forum meeting Leon refers to in that clip was replicated:

How approval bodies are failing to properly approve and monitor Alternative Dispute Resolution -

 

Pride and enjoyment

But we started with the easy stuff! I asked Leon what achievement he was most proud of and what he had enjoyed the most during his time at CTSI. He was most proud of achieving chartered status, having applied for this a number of times, and having to sort out qualifications and other issues. This status placed the profession on the same footing as others and clearly gives CTSI the mandate from the UK Government (it is awarded by HM the Queen through the privy Council) to speak with authority on all matters of Trading Standards and competence.

He enjoyed the work involved with introducing and implementing the CTST-Approved Codes of Practice.

Leon Livermore ex CTSI CEO talks about his proudest achievements

The challenges of regulation and possible solutions – Challenges born of crisis but soon forgotten

When asked what the biggest challenge was, Leon was highly critical of the Government and the current regulatory system. He spoke of Grenfell and of Whirlpool and said how, at the time of the foot and mouth crisis, money was heavily invested in animal health and welfare which was subsequently reduced because people lose that collective memory for past disasters.

“Take 60-70% out of the regulatory network, no-one notices until it goes wrong.”

It doesn’t make sense to have around 220 individual local Trading Standards services now, he says. That model was designed when everyone shopped locally and they obviously don’t now! There is a disconnect, with Government saying that local Trading Standards should undertake the consumer-facing work but localities not having the funding to carry out that work. Recognising that no-one is going to change the structure of Trading Standards, he calls for accountability at the level of Central Government. Grenfell and Whirlpool brought a focus on safety and a Minister was put in place who could be held to account.

Leon Livermore former CTSI CEO talks with The Complaining Cow about challenges of working in CTSI.

Whirlpool drier recall – more spin than real action?

We discussed our joint contempt for how the Whirlpool situation was left to the local Trading Standards department in Peterborough when it was a national problem. I wrote about Whirlpool a lot on my blog, including a report in 2018 which brought together a number of Freedom of Information Requests and statements from relevant bodies. Whirlpool – The tumble dryer story without the spin. Leon spoke about having to sit “with the bad guys” in a meeting with BEIS (Department for Business, Enterprise, Industrial Strategy (I call them BEIGE!) and having to try and justify the decision made by the local authority, when it should never have been left to them. He also spoke of how CTSI “…called for a full recall ahead of Which? and anyone else” and that this was at the same time as Peterborough Trading Standards department was giving different advice to Whirlpool.

Although there was nothing wrong with the advice they gave, which was their job to do, it just “didn’t pass that mum’s testIt didn’t sit right but it is hard for a local regulator that is exposed to so much risk to follow the letter of the law, he said. He argues that this is when the national regulator needs to come in and say what is in the best interests of consumers and provide the quicker more simple solution

In 2018 the Office of Product Safety and Standards (OPSS) was established on the back of the Whirlpool events. Leon praised the set-up of the Food Standards Agency and their work with local authorities and hopes that the OPSS will work in a similar fashion and so if something similar ever happens again then work will be quicker. But he is concerned that faulty and dangerous machines are still being used. He wants a system that protects people more efficiently but that people’s memories are so short!

Leon Livermore former CTSI CEO discusses the Whirlpool events with Helen Dewdney

Next time in the interview series

Look out for the next episode where Leon and I talk ADR! Having had good debates, arguments and differences of opinion over the years, what does he think now? What will we agree on and what did he think went wrong. Most importantly, how could the ADR scene be improved?

Notes

[1] These reports were:

Ombudsman Omnishambles:  Serious unresolved issues affecting the operation of the ombudsman ADR system in the UK

and

More Ombudsman Omnishambles: The UK ADR landscape 20 months on…

 

The Complaining Cow – free support for businesses

Join the Facebook Group Customer Service: Compassion, Care and  Integrity  A private group where you can give and get support, advice and share good practice on how to improve complaint handling.

Free download Customer Service: 5 ways to get rave reviews & referrals a few tweaks to your customer service can help you reduce the risk to your company’s reputation, finances and impact on customers and increase sales.

Customer Service how to turn customers into superfans raving about your products/services

Helen Dewdney, The Complaining Cow Services