A new report from statutory body Consumer Scotland has set out the key challenges facing consumers in Scotland in 2024 and beyond.
The Consumer Outlook 2024-2025 report will ensure decision makers - including government, parliament, businesses and regulators – understand the scale and significance of current issues facing consumers.
The report highlights how factors including economic change, technological evolution and broader policy decisions affect the choices and challenges consumers face.
The challenges identified in the report include:
- problems associated with buying or using goods and services - which cause consumers stress, money and time - is widespread and resulted in an annual cost to consumers of £4.7 billion according to a recent report
- poor customer service and complaints handling can create and exacerbate consumer harm
- consumers are more likely to experience problems when purchasing online with practices such as drip-pricing, dynamic-pricing, subscription traps and fake reviews common
- the cost of living crisis has disproportionately affected low-income households
- a legacy of the cost of living crisis is that households spend more on essentials, but get less in return driven by higher rates of inflation for essential goods and services
- more consumers are falling behind with utility bills due to historically high energy costs
- commitments to reach net zero have major implications for consumers, with emissions reductions targets requiring consumers to make behavioural changes
- policy aspirations to decarbonise homes and move away from petrol and diesel cars in favour of electric vehicles can bring benefits to consumers and society, but also bring risks and costs
Consumer Scotland Director of Research and Analysis David Eiser said:
“The world we live in is evolving rapidly as a result of global economic and political developments, technological change and broader policy decisions.
“These changes can create positive outcomes and opportunities for consumers where new products, services and markets broaden choice and enhance accessibility.
“However, it can also create new challenges where consumers have to navigate uncertainties and unfairness, particularly in new and emerging markets.
“Our report considers the significant issues facing policymakers including how we distribute costs of essential services fairly, how can consumers be supported in the journey to net zero and how can consumers most effectively be protected from harm.
“The report reiterates the importance of strong consumer advocacy and we will ensure our findings are brought to the attention of governments, the wider public sector, business and the third sector to help improve the lives of consumers in Scotland.”
Background
Consumer Scotland is the statutory body for consumers in Scotland which was established by the Consumer Scotland Act 2020.
The UK-wide Consumer Protection Study 2022 estimated that 72% of consumers in Scotland experienced at least one incidence of detriment between April 2020 and April 2021. In total, there were 18.6 million detriment incidents in Scotland in that year, and these problems resulted in a ‘net monetised cost’ to consumers in Scotland of £4.7 billion.