Groundbreaking order against double glazing firm
30 Jun 05
OFT wins first order under Enterprise Act for company to improve customer service
A double glazing company with a bad record of customer complaints has been made the subject of the first order granted under the Enterprise Act 2002 for a business to improve itss customer service standards.
Lord Drummond Young in the Court of Session ordered MB Designs (Scotland) Ltd of Kirkintilloch not to "supply windows, doors and conservatories which are not of satisfactory quality... [or] fail to exercise the requisite level of skill and care of a reasonably competent installer". Its directors Martin Black and Paul Bett were ordered not to "consent to or connive in" defective services.
The orders were sought by the Office of Fair Trading, which has powers under Part 8 of the 2002 Act to apply for an enforcement order against businesses found to infringe certain standards of consumer service. The court was told that MB Designs had been the subject of over 300 complaints to the trading standards office.
The company argued that many of the complaints were due to work done by independent installers, but Lord Drummond Young held that these parties were subcontractors as the customers had no separate contract with them.
The judge said: "I think it clear that the supply of defective goods and services by the [company] and the use of the objectionable contractual terms is continuing, and that it is appropriate that that should be prohibited in the manner contemplated by Part 8 of the 2002 Act. In this connection, I am of opinion that both the defects in the [company's] products and services and the impact of the objectionable contractual terms is sufficiently serious to warrant action under Part 8."
MB Designs has said that it will appeal.
Lord Drummond Young's decision can be read at http://www.scotcourts.gov.uk/opinions/2005CSOH85.html .