The Department of Business, Enterprise and Regulatory Reform is planning to introduce new regulations to clamp down on unfair sales and marketing practices.

The proposed Consumer Protection from Unfair Trading regulations aim to close loopholes rogue traders have previously been able to exploit by establishing a catch-all duty not to trade unfairly. In addition, the regulations would ban 31 types of unfair sales practices outright. If approved by Parliament, the regulations will come into force on 26 May 2008.

Consumer Affairs Minister Gareth Thomas said that the law would be "good news for consumers and honest businesses". He promised that the law would better protect consumers, cut red tape and make it easier for Trading Standards and the Office of Fair Trading to interpret and enforce the law.

Many of the 31 banned sales practices are intended to stop scams involving deceptive unsolicited mailings, phone calls and e-mails. They include:

• Falsely stating that a product will only be available for a very limited time, or that it will only be available on particular terms for a very limited time. This practice is often used to prevent consumers make an informed choice about buying a product or service.
• Claiming that the personal security of the consumer or his family may be at risk if he does not buy a certain product or service. This technique is often used by so-called clairvoyants and psychics.
• Falsely claiming that a product is able to cure illnesses, dysfunction or malformations, also known as a 'miracle health cure scams'.
• Establishing, operating or promoting a pyramid selling scheme.
• Describing a product as 'free' when it is in fact not free at all.
• Creating the false impression that the consumer has already won, will win, or will on doing a particular act win, a prize when in fact there is no prize.

The Office for Fair Trading organised a 'Scams Awareness Month' this February. According to research by the consumer and competition authority, 3.2 million adults in the UK fall victim to a scam every year. Scams cost the UK consumer an estimated £3.5 billion per annum.