Consumers: Protection
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the adequacy of consumer protections where rogue traders use a limited company to avoid liability.
Answered by Kate Dearden
The law protects consumers when they buy goods, services or digital content remotely or in person. Consumer protections apply regardless of how a business is set up and are designed to help when consumers are treated unfairly or when things go wrong. These protections apply alongside other aspects of the law including the legal framework for incorporating, managing, and winding up companies. Companies House, HMRC and the Insolvency Service have developed a three-way partnership to help protect the public by tackling rogue directors who try to avoid liabilities through abuse of the insolvency regime.
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