Financial comparison websites to have code of conduct

Thursday, 16 July 2009 03:26

Customers may see their favourite price comparison websites undergo changes as a result of the new efforts to create a regulator for the industry.

The Comparison Consortium has been developed to establish a standard of practice for price comparison websites of financial products and services.

It aims to improve factors such as heavy jargon and unnecessary requirement of personal details.

"It only seemed proper that the industry's veterans assume this 'guardianship' role by defining the boundaries and instilling a common set of principles throughout," said consortium co-founder Richard Mason.

"The introduction of this code will ensure that customers are treated fairly and respectfully, and help the industry move one step closer to adulthood."

All 40 players in the price comparison market were invited on July 15th to adhere to the voluntary code of practice. Those who are found in compliance will be eligible for accreditation and receipt of the organisation's seal of approval.

Accredited websites will then have to accommodate the group's communication standards and a specific complaints procedure.

Among the biggest names the consortium is targeting are Tescocompare, Moneysupermarket and Moneyexpert.

Though the implementation of the accreditation process is a market first, the idea has been circulating for some time.

Resolution Foundation, an independent research and policy organisation, first called for a code of conduct in 2007. They believe the consortium has made a solid start.

"This code of practice is a positive first move towards consumers having all the information they need when they make a financial purchase. It is a welcome first step in self-regulation of the comparison website sector," said Resolution's chief executive Sue Regan.

In critique, the foundation noted there was no clear indication of how the sites would be policed as certain criteria are objective and difficult to measure.

Next week the Comparison Consortium is hosting a working lunch to discuss the future development of the code of practice.

• Tags:
• insurance use and levels
,
• news