Consumer protection in green heating and insulation sector

The CMA is looking at consumer protection in the green heating and insulation sector.

From:
Competition and Markets Authority
Published
27 September 2022
Last updated
21 February 2024 — See all updates
Case type:
Consumer enforcement
Case state:
Open
Market sector:
Energy
Opened:
27 September 2022

Timetable

Date Action
21 February 2024 Update on the standards landscape
24 January 2024 Consultation on draft compliance advice for businesses closed
13 December 2023 Consultation on draft compliance advice for businesses opened
17 October 2023 Worcester Bosch investigation launched
21 July 2023 Response to the MCS consultation on proposed scheme changes
31 May 2023 Findings report, consumer guide and principles for standards bodies published
27 September to 1 November 2022 Call for information questionnaires
27 September 2022 Project launched

Update on the standards landscape

21 February 2024: The CMA has published a progress update on how the landscape of standards bodies that oversee quality and consumer protection standards in the sector have taken forward our good practice principles.

Overall, standards bodies have engaged positively with the principles. However, more still needs to be done to improve the levels of consumer protection. Standards bodies should continue to push forward with changes that are needed to improve their practices.

We recognise that standards bodies alone cannot address all the concerns we identified. The CMA will therefore continue to work with UK government to take forward our steers to help improve consumer protection in the sector.

Consultation on draft compliance advice now closed

24 January 2024: The CMA is currently considering responses to its consultation on draft consumer law compliance advice for businesses marketing green heating and insulation products to consumers.

This draft compliance advice aims to help businesses understand and comply with their consumer law obligations. The CMA has produced this draft compliance advice following concerns we identified about some businesses in the sector: (i) making potentially misleading claims about green heating and insulation products; and/or (ii) providing limited and inconsistent upfront price information, as set out in our call for information findings report.

Investigation launch

The CMA has opened an investigation into Bosch Thermotechnology Limited’s (trading as ‘Worcester Bosch’) compliance with consumer protection law. The CMA is investigating Worcester Bosch’s marketing claims about its so-called ‘hydrogen-blend ready’ home boilers.

This follows our findings report which highlighted concerns that a number of businesses in the green heating and insulation sector were making potentially misleading claims online about hydrogen use in boilers and put the sector on notice for further action.

The CMA has also written to 12 other businesses to warn them that they could be breaching consumer protection law after reviewing their marketing to consumers, and to remind them of their legal obligations.

Consumer awareness campaign

The CMA has produced a video as part of a social media campaign to remind people about their consumer rights and the key questions to ask when buying a new green home heating or insulation product, such as a heat pump or solar panels. The video signposts people to the CMA’s more detailed consumer guide published earlier this year.

Response to the MCS consultation

The CMA has published its response to the Microgeneration Certification Scheme’s consultation on proposed changes to its scheme.

Call for information: findings and next steps

The CMA has published a report setting out the findings from its call for information on consumer protection in the green heating and insulation sector. We looked at three key themes - people’s experience of buying green heating and insulation products; business practices and the landscape of standards bodies which provide quality assurance and consumer protection standards for member businesses. We have identified concerns in these areas and the report sets out actions to help address these.

We have also published a consumer guide to assist people when buying green heating and insulation products, which sets out a summary of their key rights and protections under the law; and a set of good practice principles for standards bodies, to help raise the level of protections in the sector.

The CMA will continue to engage closely with stakeholders to share our findings and to take forward actions to help tackle the issues we have identified.

We will also be carrying out further work in this sector, focusing on business practices - in particular we will be looking at misleading and greenwashing claims made by businesses about their products. At this stage, the CMA has not reached a view as to whether consumer protection law may have been broken.

About the project

On 27 September 2022 the Competition and Markets Authority (CMA) launched a call for information looking at consumer protection in the UK green heating and insulation sector, focusing on the sale of the following products for the home: heat pumps; home solar; insulation; biomass boilers and hydrogen-ready boilers.

The call for information looked at consumer experiences and business practices, including those relating to the marketing and sale of the above products, and sought views from consumers, businesses and other interested parties through questionnaires. It explored whether further steps or action is needed to help ensure consumers are treated fairly and businesses are supported to meet their obligations under consumer protection law. Through doing so, this work contributes to the CMA’s Annual Plan commitment to support the UK’s transition to low carbon growth.

The call for information examined several issues, including:

  • how consumers select products and business suppliers
  • how businesses in the sector promote their products/services to consumers
  • the provision of key information to consumers by businesses before, during and after the product’s installation
  • the complaints and redress process if things go wrong for consumers
  • the role of certification schemes and codes of practice in increasing consumer confidence in the sector

We are carrying out this work under section 5 of the Enterprise Act 2002, which gives the CMA the power to obtain, compile and keep under review information about matters relating to its functions.

Further information on the project, including our areas of focus, and the potential outcomes of the call for information, is set out in the Overview document below.

At this early stage, the CMA has not reached a view as to whether consumer protection law may have been broken.

Data Protection

Any personal data you provide us will be handled in accordance with our obligations under the UK General Data Protection Regulation and the Data Protection Act 2018. Our personal information charter sets out the standards you can expect from us when we collect, use or share personal data and provides details of your rights in relation to that data and how to contact us.

How we use your information

We may only publish or disclose with others (outside the CMA) the information that you provide us in specific circumstances as set out in legislation (principally Part 9 of the Enterprise Act 2002). For further information visit the Annex to the Overview document.

Contact

greenheating@cma.gov.uk

Published 27 September 2022
Last updated 21 February 2024 + show all updates

  1. Consumer protection review: update on the standards landscape published

  2. Consultation on draft compliance advice for businesses on the marketing of green heating and insulation products published

  3. Worcester Bosch investigation launched

  4. Response to the MCS consultation published.

  5. Final report and nest steps published.

  6. First published.

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