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Hello and welcome to Watchdog Daily. We are with you live for the next | :00:28. | :00:32. | |
45 minutes, taking on the companies big and small whose service, value | :00:32. | :00:38. | |
and promises don't always measure up. This morning: Vodafone, Orange, | :00:38. | :00:41. | |
T-Mobile - changing their mobile tariffs and failing to warn their | :00:41. | :00:45. | |
customers. Have you added up all the extra | :00:45. | :00:50. | |
charges you are paying for? The price tag looks cheap but don't be | :00:50. | :00:54. | |
tempted. This is a problem product. Anybody using this is going to put | :00:54. | :01:01. | |
themselves at risk of electrocution. First, mobile phones. Vodafone, | :01:01. | :01:05. | |
Three, T-Mobile and Orange have all angered customers by raising the | :01:05. | :01:09. | |
cost of tariffs that people were told were fixed but clauses in the | :01:09. | :01:13. | |
smallprint of their contracts allow them to do this. Now the industry | :01:13. | :01:16. | |
regulator is investigating to see whether they are treating customers | :01:16. | :01:21. | |
fairly. So while we wait for the results, we carried out an | :01:21. | :01:25. | |
investigation of our own. There are more than 80 million | :01:25. | :01:30. | |
mobiles throughout the UK. Half of which are on contracts lasting up | :01:30. | :01:35. | |
to 24 months. These contracts are often fixed which means customers | :01:35. | :01:40. | |
can't cancel without paying a penalty. The companies can do | :01:40. | :01:44. | |
almost anything they like. smallprint allows most of the | :01:44. | :01:48. | |
companies to put the charges up or down, not just by inflation. Some | :01:48. | :01:53. | |
of them do limit to inflation. There is wide freedom to alter | :01:53. | :01:57. | |
those charges. Once you agree to those terms and conditions, you | :01:57. | :02:01. | |
can't cancel without some penalty. In fact, all providers, apart from | :02:02. | :02:06. | |
O2, have increased pay monthly tariffs for customers on fixed | :02:06. | :02:13. | |
contracts in the last year. This woman signed up to a 24-month | :02:13. | :02:18. | |
contract with Vodafone in 2011. 14 months into it, Vodafone put up the | :02:18. | :02:22. | |
price. On 27th September I got a text from Vodafone advising me that | :02:22. | :02:28. | |
the line rental would be increasing monthly from 1st November. I was | :02:28. | :02:32. | |
surprised to have that. I presumed I was in a fixed-rate contract for | :02:33. | :02:36. | |
the 24-month period. I know I can't break the contracts. I went on to | :02:36. | :02:42. | |
the web and I had a look at how much it was going to go up. It was | :02:42. | :02:45. | |
only 60p, but it is not about the money, it is about the fact they | :02:45. | :02:51. | |
are putting the price up. I can't do anything about that. She was one | :02:51. | :02:55. | |
of ten million Vodafone customers to receive such a text. Some just a | :02:55. | :03:00. | |
month after taking out long-term supposedly fixed contracts. The | :03:00. | :03:03. | |
company says they are allowed to do this as it is in the terms and | :03:03. | :03:07. | |
conditions. Are these conditions always spelled out to customers? | :03:08. | :03:11. | |
feel angry. No-one said to me, "Do you realise any time within this | :03:11. | :03:14. | |
contract period, we can put the price up providing it is only | :03:14. | :03:19. | |
within a specific range?" None of that was mentioned. At no stage did | :03:19. | :03:23. | |
anybody say, "You need to refer to our terms and conditions." If the | :03:24. | :03:27. | |
company has the right to change the price and there is no policy in | :03:27. | :03:30. | |
place that they are not going to use that right, the customer should | :03:30. | :03:33. | |
be told a price is fixed but it might go up. If that is left out, | :03:33. | :03:38. | |
it is misleading. Just as most providers have been increasing | :03:38. | :03:42. | |
prices, we have been hearing about them reducing benefits. These | :03:42. | :03:46. | |
companies often use incentives or add-ons to persuade new customers | :03:46. | :03:51. | |
to sign up or existing ones to stay loyal. Now, these incentives can | :03:51. | :03:55. | |
range from free broadband to text message bundles. If you are tempted, | :03:55. | :03:58. | |
beware. Just because they offer them at the start of the contract | :03:58. | :04:05. | |
doesn't mean they will be available all the way through. David | :04:05. | :04:08. | |
McWilliam is a cruise ship pianist, a job that takes him abroad for | :04:08. | :04:13. | |
weeks at a time. So when he was shopping around for a mobile | :04:13. | :04:17. | |
contract, Vodafone's data traveller package was the clincher. I signed | :04:17. | :04:21. | |
up to Vodafone for the data traveller product which meant that | :04:21. | :04:26. | |
for �10 a month while abroad I could keep in touch with home, | :04:26. | :04:32. | |
through e-mails, contact family. I teach piano in the UK as well so it | :04:32. | :04:36. | |
means I can - pupils may need to contact me. Just one month after | :04:36. | :04:41. | |
David took out his 12-month contract, Vodafone removed the | :04:41. | :04:46. | |
package. Now they have a product called Euro Traveller. For �3 a day | :04:46. | :04:50. | |
you get access to your home price plan. The package now includes | :04:50. | :04:55. | |
calls and texts but for David, it works out more expensive because | :04:55. | :04:59. | |
the �10 he previously paid for a whole month of internet use now | :04:59. | :05:04. | |
buys him four days. Because I'm away a lot, what used to cost me | :05:04. | :05:09. | |
�10 a month now comes to �90 a month. Had I known, I don't think I | :05:09. | :05:14. | |
would have signed up with Vodafone. There were lots of other providers | :05:14. | :05:18. | |
offering equivalent UK minutes, some even better amount of UK | :05:18. | :05:27. | |
minutes and a larger amount of data. Meanwhile, Orange pressed ahead | :05:27. | :05:37. | |
:05:37. | :05:39. | ||
with plans to withdraw its free broadband offer. | :05:39. | :05:43. | |
Some were told that would be the case for life, but in August they | :05:43. | :05:47. | |
were informed their broadband could only continue if they signed up to | :05:47. | :05:57. | |
:05:57. | :05:58. | ||
an Orange landline rental. The deal is �14 a month. I | :05:58. | :06:04. | |
currently pay �9.19 for my line rental. And if I don't sign up with | :06:04. | :06:09. | |
that, they will cut me off. Richard was nine months into a 24-month | :06:09. | :06:13. | |
contract when the change was announced. He is adamant he wasn't | :06:13. | :06:17. | |
warned this might happen when he renewed his contract. I checked | :06:18. | :06:21. | |
with the sales person in the shop that the Orange broadband was still | :06:21. | :06:27. | |
included in the offer to which he said, "Yes, your broadband won't be | :06:27. | :06:33. | |
affected if you sign up now." I would not have signed the contract | :06:33. | :06:39. | |
with Orange if I had not got the broadband deal. The companies have | :06:39. | :06:43. | |
argued that their terms and conditions allow them to change | :06:43. | :06:47. | |
fixed charges or remove incentives. Shouldn't they warn customers that | :06:47. | :06:51. | |
they have this power before signing them up? For a consumer who signs | :06:51. | :06:58. | |
up and the questions they are asking, it clearly indicates they | :06:58. | :07:08. | |
are signing up because of that service. Rani is here. What do the | :07:08. | :07:12. | |
companies say? Firstly, Orange told us free broadband for life wasn't a | :07:12. | :07:16. | |
term used to promote its free broadband offer. It is looking into | :07:16. | :07:22. | |
the circumstances surrounding the screen-grab image shown in our film. | :07:22. | :07:27. | |
It says it still offers free home blord band to customers, but they | :07:27. | :07:36. | |
are -- broadband to customers, but they are now required to switch to | :07:36. | :07:46. | |
:07:46. | :07:50. | ||
Orange home rental. As for Vodafone, it says the Data Traveller Price | :07:50. | :07:58. | |
Plan that David McWilliams signed up for wasn't suitable for | :07:58. | :08:01. | |
customers. However, the old plan is still available for people | :08:01. | :08:05. | |
travelling outside of Europe. the companies' smallprint may allow | :08:05. | :08:11. | |
them to change the terms of your contracts, but they should tell you | :08:11. | :08:14. | |
they have the right to do that when you sign up. Are they doing so? | :08:14. | :08:24. | |
:08:24. | :08:31. | ||
That is a question for our Mystery Over the course of one day, we sent | :08:31. | :08:35. | |
our undercover team to two branches of five leading mobile phone | :08:35. | :08:38. | |
providers. Posing as potential customers, they enquired about the | :08:38. | :08:43. | |
cost of a 24-month fixed tariff pay monthly contract. But the crucial | :08:43. | :08:48. | |
question was this. It stays the same for 24 months. How did they | :08:48. | :08:53. | |
respond? O2. They might not have increased their tariffs recently, | :08:53. | :08:58. | |
but would they tell us they had the power to do so. This assistant told | :08:58. | :09:02. | |
us a drop in VAT might lead to a decrease in monthly charges. We | :09:02. | :09:06. | |
weren't warned about the contract clause stating that O2 reserved the | :09:06. | :09:12. | |
right to increase those charges at any time. In a second branch, we | :09:12. | :09:17. | |
were assured the price would remain fixed. Is that going to be the same | :09:17. | :09:25. | |
for 24 months? It is the same. both branches, the staff gave no | :09:25. | :09:30. | |
indication the company would change the price even though it is able to. | :09:30. | :09:37. | |
Did T-Mobile do any better? Is that going to stay the same? | :09:37. | :09:41. | |
necessarily. A similar clause also states that the price per month can | :09:41. | :09:46. | |
go up at any time. This first branch didn't mention it and the | :09:46. | :09:53. | |
second one didn't either. Would that stay at �26 a month? Next | :09:53. | :10:00. | |
Three? The �29 a month one, does that stay at �29 a month for 24 | :10:00. | :10:07. | |
months does it? Yes. When we visited two branches of Orange, it | :10:07. | :10:14. | |
was the same story. And so finally to Vodafone. Remember, they had | :10:14. | :10:20. | |
just increased their prices. So surely they would tell us what | :10:20. | :10:24. | |
their smallprint allows us to do? How long is the contract? 24 months. | :10:24. | :10:31. | |
Is that �29 month the same for 24 months? If you stay on the same | :10:31. | :10:37. | |
tariff. Both branches failed to refer us to the key contract clause | :10:37. | :10:42. | |
despite us asking the question. Ten branches all failing to give us | :10:42. | :10:44. | |
sufficient information. If a customer goes in and says they want | :10:44. | :10:49. | |
to sign up on the basis of a fixed price contract, not to be told that | :10:49. | :10:52. | |
the term can be altered and leaving the customer with the impression | :10:52. | :10:56. | |
the price will be fixed is missing out a material piece of information | :10:56. | :10:59. | |
and that is a breach of the consumer protection legislation. | :10:59. | :11:03. | |
The reporters were told the price would stay the same. They were | :11:03. | :11:06. | |
specifically not told the price could or would be raised. If the | :11:06. | :11:12. | |
prices were then raised, that is misleading. As well as being able | :11:12. | :11:16. | |
to raise prices, the companies have the power to remove those add-ons | :11:16. | :11:20. | |
that they use to tempt us into buying contracts. But you guessed | :11:20. | :11:25. | |
it. They didn't tell us about this either. Not one of them. For a | :11:25. | :11:28. | |
consumer who signs up and the questions they are asking are | :11:28. | :11:32. | |
clearly indicating they are signing up because of that service, not to | :11:32. | :11:36. | |
be the service can be taken away is is a breach of consumer legislation | :11:36. | :11:38. | |
because you are missing out an important piece of information. The | :11:38. | :11:42. | |
fact that you have got ten cases where there's incomplete | :11:42. | :11:48. | |
information being given seems to be evidence of some sort of systematic | :11:48. | :11:53. | |
problem. That is something Trading Standards might want to look at. It | :11:53. | :11:58. | |
is something Ofcom might want to look at as well. Ofcom is also | :11:58. | :12:01. | |
investigating whether the mobile companies are treating customers | :12:01. | :12:05. | |
fairly. EE, which represents Orange and T-Mobile, told us it looks | :12:05. | :12:10. | |
forward to working with them. It adds that it is working to improve | :12:10. | :12:14. | |
transparency for customers at the point-of-sale. As does Vodafone and | :12:14. | :12:19. | |
Three which says it welcomes Ofcom's efforts to give consumers | :12:19. | :12:22. | |
greater clarity about what price changes are acceptable. | :12:22. | :12:28. | |
As for the recent price rises, Vodafone says it is to cover rising | :12:28. | :12:32. | |
business costs and it always gives customers notice. Three says it is | :12:32. | :12:35. | |
the first price rise in nine years and is in line with inflation. | :12:35. | :12:40. | |
Finally, O2. It says it hasn't increased any monthly contract | :12:40. | :12:43. | |
prices in mid-term. That might explain why the topic wasn't front | :12:43. | :12:48. | |
of mind for the staff we spoke to. It's sorry we weren't given the | :12:48. | :12:52. | |
information in the two O2 stores we visited and it will be reminding | :12:52. | :12:57. | |
stores that prices and additional services can always be subject to | :12:57. | :13:03. | |
change. If you would like to comment on this, we would love to | :13:03. | :13:09. | |
hear from you. Our address is Watchdog Daily. To text us it is | :13:09. | :13:15. | |
88822. Start your message with "WD". If you want to join us on Twitter, | :13:15. | :13:19. | |
our address and hashtag are on your screens now. | :13:19. | :13:23. | |
Now, if you were watching yesterday, you will have seen our report about | :13:23. | :13:27. | |
food product packaging. The viewer who complained about the amount of | :13:27. | :13:31. | |
Wheat Crunchies she found in this pack. Now, at the end of the report, | :13:31. | :13:34. | |
we mistakenly named the manufacturer of Wheat Crunchies as | :13:34. | :13:38. | |
Dairy Crest. We would like to point out that the snack is in fact made | :13:38. | :13:44. | |
by United Biscuits. Last week, we saw the Consumer Cops | :13:44. | :13:51. | |
clamping down on the sale of fake designer goods. Today, we join | :13:51. | :13:56. | |
their colleagues in Cardiff. Here is Rhodri Owen. | :13:56. | :14:00. | |
Yes, we are talking about counterfeit cosmetics, fake medical | :14:00. | :14:03. | |
products and dodgy electrical goods. It is a booming industry but one | :14:04. | :14:08. | |
that is rife with dangers. Ensuring that all the goods on sale are | :14:08. | :14:14. | |
legitimate and safe is a massive task for teams in Cardiff and in | :14:14. | :14:20. | |
Bristol. We have on the frontline to see how they are tackling the | :14:20. | :14:25. | |
problem head-on. It is.30am in Cardiff. In this city, there are | :14:25. | :14:30. | |
some 11,000 businesses selling to the public. Today, Trading | :14:30. | :14:35. | |
Standards officers have one of them in their sights. A company trading | :14:35. | :14:44. | |
electrical goods over the internet. Are they breaching the trademark? | :14:44. | :14:50. | |
Yes. We will have a list of what we are going to take and what we are | :14:50. | :14:57. | |
going to leave. Sarah Smith began the investigation weeks ago. It | :14:57. | :15:00. | |
started with a tip-off from colleagues in Devon that a retailer | :15:00. | :15:04. | |
on their patch might be selling fake or dangerous products. Today | :15:04. | :15:08. | |
we are looking at the more unusual products which are electronic dance | :15:08. | :15:15. | |
mats that go with game consoles and travel adapters. Officers have | :15:15. | :15:19. | |
already bought goods from the trader that can be sent off for | :15:19. | :15:24. | |
analysis. This has established they are fake or potentially dangerous, | :15:24. | :15:30. | |
like this dance mat. One of the test reports - this is for a games | :15:31. | :15:36. | |
console dance mat. It goes into whether the wiring is OK, whether | :15:36. | :15:41. | |
there is any potential electric shock hazards, which is one of the | :15:41. | :15:46. | |
problems identified with this product. With consumers at possible | :15:46. | :15:52. | |
risk, the investigation takes on a new urgency. The officers head to | :15:52. | :15:55. | |
the trader's warehouse to confiscate his stock. The only | :15:55. | :16:00. | |
information we have currently is that we know he imports items | :16:00. | :16:07. | |
directly from China and then proceeds to sell them on eBay. The | :16:07. | :16:11. | |
public are potentially in danger which is why when we have found out | :16:11. | :16:16. | |
the test results, we want to ensure the integrity of the supply chain. | :16:16. | :16:21. | |
One of the things we will be looking to do is get a product | :16:21. | :16:25. | |
recall in place for any of these products that may have been sold | :16:25. | :16:32. | |
over eBay. Across the Severn a similar operation is unfolding. | :16:33. | :16:35. | |
Police and Trading Standards officers have been tracking another | :16:35. | :16:42. | |
suspect trader in Bristol. Today, they are ready to act. We have | :16:42. | :16:49. | |
received some intelligence from the British music industry regarding | :16:49. | :16:53. | |
illegal copies of DVD. We have a warrant that we will hand over to | :16:53. | :16:58. | |
the persons at that address. If there is any need for an arrest, we | :16:58. | :17:05. | |
will make the call to the police officers. The Trading Standards | :17:05. | :17:09. | |
team believe the suspect is running an illegal DVD copying operation | :17:09. | :17:14. | |
from his home address. We have gone through a few meetings with the | :17:14. | :17:17. | |
police to assess the risks because we don't know whether he is a | :17:17. | :17:20. | |
violent person, we don't know what sort of person we are going to meet. | :17:20. | :17:25. | |
If we knock at the door, he is not answering, and we suspect there is | :17:25. | :17:29. | |
somebody in the premises, the police have the power to bash the | :17:29. | :17:35. | |
door. With police back-up in place, she serves the warrant. I'm a | :17:35. | :17:38. | |
Trading Standards officer with Bristol City Council. We are here | :17:38. | :17:44. | |
to inspect your premises. We have had some intelligence about films | :17:44. | :17:49. | |
and DVDs. Although the suspect isn't at home, his wife lets them | :17:49. | :17:53. | |
in without objection. And once inside, she and her team realise | :17:53. | :18:01. | |
they have uncovered a major counterfeiting operation. 4,000 | :18:01. | :18:06. | |
discs containing music, movies and games. All illegally copied and all | :18:06. | :18:11. | |
stored in one living room. Later, our cameras follow the Consumer | :18:11. | :18:15. | |
Cops as they confront the owner of all those goods. Before that, has | :18:15. | :18:19. | |
your council tax been frozen this year? Chances are it has as | :18:19. | :18:23. | |
hundreds of local authorities have kept council tax unchanged, some | :18:23. | :18:27. | |
for the third year running. That doesn't necessarily mean you are | :18:27. | :18:31. | |
better off. Many of them have been clawing money back by racking up | :18:31. | :18:35. | |
their fees on everything from parking, to school dinners, to the | :18:35. | :18:39. | |
cost of burial plots. As authorities find ever-increasing | :18:39. | :18:44. | |
ways to make up for lost income, we ask how much is your council | :18:44. | :18:48. | |
actually costing you? Did you know nearly one in five councils has got | :18:48. | :18:52. | |
rid of its pest control service? And that some of those who do still | :18:52. | :18:56. | |
provide one now charge more for it? Yes, if you are in Gloucester and | :18:56. | :19:01. | |
you have a rat problem, calling out the council's pest controllers will | :19:01. | :19:05. | |
set you back �40 for the first visit when it used to be free. What | :19:05. | :19:11. | |
about the fact that nearly a third of all councils now charge for | :19:11. | :19:14. | |
collecting green waste including Wokingham in Berkshire, one of the | :19:14. | :19:21. | |
latest to start asking you to pay? The cost there, �60 a year. As for | :19:21. | :19:25. | |
you drivers, some councils have raised their parking charges by as | :19:25. | :19:30. | |
much as 400%. Well, there might be a good reason for that. Councils | :19:30. | :19:35. | |
are not going to be putting up posters in front of town halls, | :19:35. | :19:41. | |
saying they are putting charges up. They are not going to want to do | :19:41. | :19:45. | |
that. But I think people will notice the charges. At least we can | :19:45. | :19:49. | |
choose whether to drive or call out pest control. But some other | :19:49. | :19:53. | |
increased charges are harder to avoid, like those for social care | :19:53. | :19:57. | |
services, such as Meals on Wheels and transport to day-care centres. | :19:57. | :20:01. | |
So why are we having to put up with it? The Government is holding down | :20:01. | :20:07. | |
council tax so it can only go up by typically 1-2% a year at most. The | :20:07. | :20:12. | |
Government is also cutting the grants that it gives to councils | :20:12. | :20:18. | |
substantially so with those two major income sources frozen or | :20:18. | :20:22. | |
falling, then either councils have to cut services, or they will need | :20:22. | :20:28. | |
to put up the fees and charges where they can. In Sefton another | :20:28. | :20:30. | |
charge could be about to rise significantly. The council is due | :20:30. | :20:34. | |
to vote on whether to increase the cost of burials and cremations by | :20:34. | :20:40. | |
more than 20%. That means from next April, it could cost the bereaved | :20:40. | :20:47. | |
�900 to buy a plot from the council. I feel it's just disgraceful that | :20:47. | :20:50. | |
Sefton are targeting bereaved families. Some parts of my local | :20:50. | :20:54. | |
area, there are people who are particularly finding it difficult | :20:54. | :20:58. | |
to cope with the day-to-day living costs. They can't plan for a | :20:58. | :21:02. | |
funeral. The fees went up by a large percentage last year as well. | :21:02. | :21:07. | |
I don't think it is appropriate. The bereavement services from | :21:07. | :21:11. | |
Sefton Council should be a service, not a profit-making business. | :21:11. | :21:14. | |
Government has cut its grants to local authorities and wants council | :21:14. | :21:19. | |
tax freezes to continue. It says councils should save money through | :21:19. | :21:22. | |
greater efficiency. But if they don't manage to do that, it looks | :21:22. | :21:25. | |
like the public will have to continue making up the financial | :21:26. | :21:31. | |
shortfall with even more increased charges. Joining me now is the | :21:31. | :21:33. | |
councillor from the Local Government Association. Is that | :21:33. | :21:37. | |
what is going to happen? Residents will have to make up this shortfall | :21:37. | :21:41. | |
for years to come? It is for local councils to make local choices. | :21:41. | :21:47. | |
They know best what they need to do to balance their budgets. It is a | :21:47. | :21:50. | |
mixture of raising revenue and reducing costs and councils are | :21:50. | :21:56. | |
doing that. A lot of the services being hit are essential services - | :21:56. | :22:02. | |
Meals on Wheels, things that people can't do without? Councils have to | :22:02. | :22:06. | |
provide many services, safeguarding children, filling in potholes for | :22:06. | :22:10. | |
instance. There is a choice. The Government have reduced funding to | :22:10. | :22:19. | |
local governments by 20 to 28%. We are freezing council tax. And there | :22:19. | :22:23. | |
is local choices on how you balance the books. Is it fair that some of | :22:23. | :22:26. | |
these services - essential ones - things that people can't do without | :22:26. | :22:32. | |
- the elderly, people who are least able to pay, they are being hit, | :22:32. | :22:37. | |
the cost of a meal going up by �1.50. It is a lot? I think it is | :22:37. | :22:43. | |
important to point out these meals are still subsidised. Some councils | :22:43. | :22:46. | |
are cutting those subsidies? Absolutely. They are not making | :22:46. | :22:50. | |
profits out of these services. They are taking choices on how much | :22:50. | :22:55. | |
subsidy they can put to certain services and then invest in others. | :22:55. | :23:00. | |
It is about a balance locally. Local councils know best what works | :23:00. | :23:05. | |
for their area. They put the choices to the electorate. It is | :23:05. | :23:10. | |
turning into a postcode lottery, isn't it? You call it postcode | :23:10. | :23:14. | |
lottery. Localism in action, local councils taking the decisions. Yes, | :23:14. | :23:18. | |
they are tough decisions. But decisions locally which they think | :23:18. | :23:22. | |
will be best for their communities. Make more efficiencies. Is that not | :23:22. | :23:26. | |
possible to save people all this extra cost? Absolutely. Councils | :23:26. | :23:32. | |
are doing it. Already, we have saved - councils have saved �1.4 | :23:32. | :23:37. | |
billion in staff costs across-the- board. You can only go so far with | :23:37. | :23:40. | |
efficiencies without cutting services. It is people who provide | :23:40. | :23:44. | |
services. They are the main cost for councils. If you haven't got | :23:44. | :23:46. | |
people, you haven't got a service. Thank you. | :23:46. | :23:50. | |
Let's see what the councils mentioned in our report have to say | :23:50. | :23:55. | |
about those price hikes. Thank you. Gloucester City Council | :23:55. | :23:58. | |
told us its pest control charges are the result of having to | :23:58. | :24:02. | |
introduce significant cuts. Over the past three years, it's had to | :24:02. | :24:07. | |
achieve �6 million worth of savings and further reductions are | :24:07. | :24:11. | |
anticipated next year. As for Wokingham, it told us it is the | :24:11. | :24:15. | |
worst funded local authority in England. It says a large majority | :24:15. | :24:18. | |
of residents support its green ways collection scheme which has enabled | :24:18. | :24:24. | |
it to maintain essential services. Finally, Sefton Council says the | :24:24. | :24:27. | |
increase in cremation costs will be discussed tomorrow. No decisions | :24:27. | :24:34. | |
have been made, but to balance next year's budget it must find �43.7 | :24:34. | :24:39. | |
million on top of �64 million already saved. It says it offers a | :24:39. | :24:42. | |
valuable and supportive service to bereaved families and that | :24:42. | :24:47. | |
cremation and burial fees make up only a small percentage of the | :24:47. | :24:51. | |
average funeral cost. Earlier, we featured two undercover | :24:51. | :24:55. | |
operations both designed to seize counterfeit goods being sold over | :24:55. | :24:58. | |
the internet. Consumer Cops in Cardiff are on the trail of | :24:58. | :25:02. | |
dangerous electrical products and in Bristol, they have uncovered a | :25:02. | :25:06. | |
treasure-trove of fake films, music and games with a street value | :25:07. | :25:12. | |
totalling more than �30,000 and the officers are about to confront the | :25:12. | :25:16. | |
trader. Let's join Rhodri again. The trader | :25:16. | :25:19. | |
wasn't around when the officers entered his home. As they started | :25:20. | :25:29. | |
:25:30. | :25:33. | ||
removing the confiscated goods, he makes an appearance. No comment. | :25:34. | :25:37. | |
Although initially untalkative, the trader soon begins giving the team | :25:37. | :25:42. | |
information they are looking for. He seems to have admitted the fact | :25:42. | :25:49. | |
that we have sort of caught him out. And he's told us where the other | :25:49. | :25:54. | |
copies, illegal copies are stored in the loft. I think this is just | :25:54. | :26:00. | |
about a quarter of what we think we have got in there. This is one | :26:00. | :26:05. | |
section, one wall. We have got four walls and the middle bits as well! | :26:05. | :26:15. | |
:26:15. | :26:15. | ||
These are films, X borks, Wi, games, -- Xbox, Wi, games. We also have a | :26:15. | :26:21. | |
couple of monitors. We have DVD writers. There are still a hold lot | :26:21. | :26:30. | |
of other copies in there. So yeah, it will take some time. In fact, it | :26:30. | :26:34. | |
takes five hours with officers having to send for more cars in | :26:34. | :26:39. | |
which to fit the sheer volume of counterfeits. Some 4,500 products | :26:39. | :26:45. | |
in all. We have a van, don't we, an office van? We are trying the | :26:45. | :26:49. | |
organise that. Following this operation, the dealer has been | :26:49. | :26:52. | |
invited in for an interview and investigations are still ongoing. | :26:52. | :26:58. | |
It was one of Colette's biggest counterfeit seizures. You expect a | :26:58. | :27:02. | |
domestic premises to have probably a computer, DVD writer, which you | :27:02. | :27:11. | |
have to take away. To see this many copies ready and we have got | :27:11. | :27:14. | |
evidence of him having put an address, the different customers | :27:14. | :27:19. | |
that are waiting for these discs, which we have also seized. There's | :27:19. | :27:22. | |
a lot of people don't know that Trading Standards are concerned | :27:22. | :27:27. | |
about things like this that are going on and it is to protect the | :27:27. | :27:32. | |
community. I think it does send out a message that we are out there and | :27:32. | :27:37. | |
we will find you. Back in Cardiff, the Trading Standards team are on | :27:37. | :27:40. | |
their way to a warehouse they believe contains fake and dangerous | :27:41. | :27:45. | |
goods. As they arrive, the trader is there to meet them. We have had | :27:45. | :27:51. | |
the results back now. Unfortunately, they fail the relevant safety tests. | :27:51. | :27:57. | |
All of them? I wanted to go through that with you. Before I run this | :27:57. | :28:04. | |
business, I called Trading Standards. I asked my staff... | :28:04. | :28:07. | |
owner seems to think the officers are there to provide free business | :28:08. | :28:11. | |
advice. That is not their immediate concern. We can certainly help you | :28:11. | :28:17. | |
with that. What we have to sort out today, we are aware now that some | :28:17. | :28:21. | |
products that we sampled from you have failed safety tests. That is | :28:21. | :28:26. | |
the priority number one. Today, is about resolving this situation. | :28:26. | :28:32. | |
About potentially unsafe products. OK. Upstairs, they see the scale of | :28:32. | :28:36. | |
the trader's operation. The warehouse contains the dangerous | :28:36. | :28:41. | |
dance mats and adapters as well as other branded products the officers | :28:41. | :28:47. | |
think might be fake. I believe this will breach trademarks in terms of | :28:47. | :28:53. | |
Nintendo and Wii. These six or seven items, I will be taking as | :28:53. | :29:02. | |
well today. Where have these come from? This one I think I bought | :29:02. | :29:06. | |
from... I'm worried that this is breaching Microsoft again. We will | :29:06. | :29:12. | |
also test this as well for safety. Despite the findings, the owner | :29:12. | :29:16. | |
protests his innocence claiming that much of his stock has been | :29:16. | :29:23. | |
inherited. I don't know what's wrong about me, because I just take | :29:23. | :29:28. | |
this business from other people a few months ago. I want to make | :29:28. | :29:32. | |
everything OK, but I still have problems. It is hard for me to | :29:32. | :29:36. | |
understand what is wrong. By the end of the day, the officers | :29:36. | :29:43. | |
have seized 600 items. But this operation is not over yet. | :29:43. | :29:46. | |
owner was co-operative and helpful with us. He identified to us where | :29:46. | :29:52. | |
the stock was. He got it out so we could process it and bag it and | :29:52. | :29:55. | |
remove it. I think it's been very successful. We have come here and | :29:55. | :29:59. | |
achieved what we wanted to do. We have removed the unsafe products | :29:59. | :30:04. | |
from the market and we will do further checks. We will find out | :30:04. | :30:09. | |
what happens later. Now an update on Monday's story about Persimmon | :30:09. | :30:13. | |
Homes. Lots of new homebuyers have been in touch but we have heard | :30:13. | :30:17. | |
from a group of owners all from one particular estate in Sussex. For | :30:18. | :30:21. | |
years, they have been battling to get a water feature fixed. The | :30:21. | :30:26. | |
delay has been bad enough, but now Persimmon wants them to pay. | :30:26. | :30:30. | |
This is the water feature the residents were expecting. The most | :30:30. | :30:37. | |
fantastic water feature of its kind. This is the one they got. It is | :30:38. | :30:43. | |
just not good enough. I have lived here since 2004. This water feature | :30:43. | :30:51. | |
has no water in it! This is rain water. It is an eyesore. It looks | :30:51. | :30:56. | |
like this for most of the year. When it is up and running, it lasts | :30:56. | :31:00. | |
for a month and the lights blow. The fountains stop working. To | :31:00. | :31:05. | |
change the lights, you have to drain the water down. It goes on | :31:05. | :31:11. | |
and on. The residents all have to look at this. When the homes were | :31:11. | :31:17. | |
built in 2002, the residents agreed to sign up to a yearly service | :31:17. | :31:21. | |
charge for the fountain. Due to some maintenance issues, they were | :31:21. | :31:26. | |
never asked to pay. In 2006, Persimmon took over the development. | :31:26. | :31:31. | |
Six years on, they say it is time for the residents to start shelling | :31:31. | :31:36. | |
out. We are happy to pay. We all bought our houses knowing that. We | :31:36. | :31:41. | |
want to pay for a water feature that has water in it and works for | :31:41. | :31:46. | |
a period of time. We all bought in to a water feature that was | :31:46. | :31:52. | |
supposed to enhance our property and our living here. This doesn't | :31:52. | :31:58. | |
do that. Persimmon have given all 369 homeowners a deadline to sign a | :31:58. | :32:01. | |
new agreement. And take over responsibility for the feature. | :32:01. | :32:05. | |
With so many problems, they have been unable to say exactly how much | :32:05. | :32:10. | |
it will cost to fix the fountain and keep it running. We think it is | :32:10. | :32:14. | |
grossly unfair, the situation they are putting us into. We would have | :32:14. | :32:19. | |
expected from a developer of that size to have a moral obligation to | :32:19. | :32:23. | |
hand something over to the residents that was functioning, | :32:23. | :32:28. | |
looked nice, that worked. And to ask us to take responsibility for | :32:28. | :32:33. | |
and to pay for, this as it is now, it is shocking. Well Persimmon say | :32:33. | :32:37. | |
that apart from occasional drainage, their records show the water | :32:37. | :32:41. | |
feature had been in continuous use until the end of last year. A leak | :32:41. | :32:45. | |
meant that it had to be drained for repair work. It wasn't refilled | :32:45. | :32:50. | |
because of a local water ban. And the need for further maintenance. | :32:50. | :32:53. | |
Persimmon say they have agreed to deposit funds for the recoating. | :32:53. | :32:59. | |
They say they provided residents with certified accounts for the | :32:59. | :33:03. | |
period of March 2011 to April 2012. They have undertaken an independent | :33:03. | :33:07. | |
survey of the feature and say it will be in working order before | :33:07. | :33:11. | |
being passed to residents' control. In the weeks leading up to | :33:11. | :33:14. | |
Christmas, many shoppers will be tempted to sign up for storecards, | :33:14. | :33:19. | |
especially those offering discounts on presents you may be buying. But | :33:20. | :33:24. | |
beware. The cost of using one of these cards could wipe out any of | :33:24. | :33:34. | |
:33:34. | :33:44. | ||
your initial findings. Let's hear Storecards. Also available online. | :33:44. | :33:50. | |
They work a bit like a credit card. But can come with added extras such | :33:50. | :33:55. | |
as 10% off your shop, or a voucher to spend, or invitations to special | :33:55. | :34:00. | |
events in the store. What's the catch? Well, just like a credit | :34:00. | :34:10. | |
:34:10. | :34:11. | ||
card, you are charged interest. What is known as the APR. It is an | :34:11. | :34:18. | |
interest rate thing. Annual something repayment. I don't know. | :34:18. | :34:23. | |
Percentage repayment? Annual Percentage Rate. Yes, APR stands | :34:23. | :34:26. | |
for Annual Percentage Rate. It essentially indicates the price at | :34:26. | :34:30. | |
which you can borrow money and allows you to compare the true cost | :34:30. | :34:38. | |
of different forms of credit. For a typical storecard, the APR might be | :34:38. | :34:42. | |
29.9%. Compare that to a typical credit card rate of 17% and it is | :34:42. | :34:48. | |
almost double so using a storecard could prove an expensive way of | :34:48. | :34:52. | |
shopping. How much more expensive? Let's do the maths. If I were to | :34:53. | :34:58. | |
buy this outfit straightaway, with cash or a debit card, it would cost | :34:58. | :35:02. | |
me �200, the price on the label. But perhaps I would be offered a | :35:02. | :35:07. | |
storecard with various incentives, maybe I could get a discount of 10%. | :35:07. | :35:15. | |
10% is �20. So with that discount I could obtain this for �180. A nice | :35:15. | :35:19. | |
saving. The problem is I now have to start paying it back. This is | :35:19. | :35:24. | |
where it could get expensive. The first month's interest is almost �4. | :35:24. | :35:28. | |
If I make the minimum payment each month, and in the first month I | :35:28. | :35:37. | |
have to pay off only �5.77. But continuing to make the minimum | :35:37. | :35:39. | |
payment, it will take me five-and- a-half years to clear everything | :35:39. | :35:46. | |
because of the monthly added interest and in total, I would pay | :35:46. | :35:52. | |
�345. That is �145 more than the original cash price of �200. It | :35:52. | :35:56. | |
doesn't take long to wipe out any special deals of discounts you | :35:56. | :36:04. | |
might get when you sign up for a storecard. There is a way to beat | :36:04. | :36:06. | |
interest rates and use the storecards to your advantage. | :36:06. | :36:11. | |
Suppose you get a 10% discount on a cash price of �200 and pay it off | :36:11. | :36:17. | |
in equal instalments each month. If you pay it off in eight months or | :36:17. | :36:21. | |
less, then you will pay less than �200. If you spread it over nine | :36:21. | :36:26. | |
months or more, you will pay more than the cash price of �200. And | :36:26. | :36:32. | |
the longer you spread it, the more it costs. Of course, each retailer | :36:32. | :36:36. | |
may offer a different discount so it is always worth checking the | :36:36. | :36:40. | |
smallprint. If no discount is offered, and you don't pay off the | :36:40. | :36:44. | |
full amount each month, just like with the credit card, then you will | :36:44. | :36:50. | |
end up paying more. Dr John Haigh. He knows his stuff. | :36:50. | :36:54. | |
If you want more information on comparing interest rates between | :36:54. | :37:02. | |
different types of credit cards, visit bbc.co.uk/watchdog. Now, it | :37:02. | :37:10. | |
is time for today's last visit to South Wales. We followed the | :37:10. | :37:16. | |
Consumer Cops. Those goods were not only fake, but they were also | :37:16. | :37:20. | |
dangerous. How much of a risk did they pose to unsuspecting buyers? | :37:21. | :37:25. | |
Here is Rhodri. The officers in Cardiff confiscated | :37:25. | :37:31. | |
600 items from this warehouse. But it was certain electrical goods, | :37:31. | :37:38. | |
like this fake PS3 charger that gave the most cause for concern. | :37:38. | :37:42. | |
This is a typical product that we have seized. It is a two-pin flat | :37:42. | :37:49. | |
plug and not a conventional UK plug. If someone tried to force that in, | :37:49. | :37:55. | |
it could have repercussions for electrical shock and injury. | :37:55. | :38:01. | |
PS3 charger is sent to this lab for thorough safety tests along with a | :38:01. | :38:10. | |
fake PSP adapter and Xbox slim adapter. We are looking for | :38:10. | :38:14. | |
protection against electric shocks. This is protecting users and people | :38:14. | :38:20. | |
that come into contact with this to make sure they remain safe. | :38:20. | :38:25. | |
Compliance Service Manager Richard begins by carrying out an | :38:25. | :38:28. | |
electrical strength test. We will use these two probes here. On our | :38:28. | :38:38. | |
:38:38. | :38:43. | ||
screen, it will tell us the applied voltage and the leakage current. | :38:43. | :38:53. | |
:38:53. | :38:55. | ||
The first test is on a counterfeit X borks 360 -- Xbox 360 slim | :38:55. | :38:59. | |
adapter. We have a genuine test failure. Once the adapter is taken | :38:59. | :39:03. | |
apart, more problems become apparent. Like this one with a | :39:03. | :39:08. | |
circuit board. It is difficult to say whether there would be an | :39:08. | :39:11. | |
electrocution risk with this. The design is not in accordance with | :39:11. | :39:18. | |
the standard. It is very deficient. I wouldn't want to be using this. | :39:18. | :39:24. | |
The next product to be tested is a counterfeit PSP adapter. We have a | :39:24. | :39:32. | |
leakage current well above two. We have a failed condition on there. | :39:32. | :39:37. | |
There may be some insulation problems inside. The conclusion is | :39:37. | :39:41. | |
alarming when he does examine the interior. This is a problem product. | :39:41. | :39:45. | |
There is insufficient isolation in the transformer, there is | :39:45. | :39:49. | |
insufficient design on the circuit board. Anybody using this will put | :39:49. | :39:56. | |
themselves at an increased risk of electrocution. He also went on to | :39:56. | :40:03. | |
test a fake charger. It meant all three products failed their safety | :40:03. | :40:08. | |
tests. The fact that they are on the market is a particular worry | :40:08. | :40:13. | |
for us. The other worry is the enforcement authorities do a | :40:13. | :40:16. | |
fantastic job, but this could be the tip of the iceberg. Nobody | :40:17. | :40:20. | |
should be subjected to a risk of electrocution when they go to use a | :40:20. | :40:26. | |
product like this. You should be able to use it safely. Joining me | :40:26. | :40:33. | |
now is Sarah Smith from Cardiff Trading Standards. The risk of | :40:33. | :40:38. | |
electrocution is terrifying. Is there an update on the trader | :40:38. | :40:42. | |
selling the goods we just saw? are awaiting a bit more information. | :40:42. | :40:47. | |
What we want to know is perhaps how widespread the supply of any of | :40:47. | :40:51. | |
those products have gone and that may have a bearing on the decision | :40:51. | :40:56. | |
we then choose to take with him in terms of enforcement action. | :40:56. | :40:59. | |
must stress the products we are talking about are counterfeit. We | :40:59. | :41:02. | |
are not talking about those produced by legitimate | :41:02. | :41:07. | |
manufacturers and sold by reputable shops or on reputable websites? | :41:07. | :41:12. | |
That is quite correct. Quite often, these products come in from abroad | :41:12. | :41:19. | |
and outside of Europe. And they generally tend to be counterfeit | :41:19. | :41:23. | |
products taken off more well nen brands. What is the -- Well-known | :41:23. | :41:28. | |
brands. What is the best way for consumers to know they are buying | :41:28. | :41:32. | |
legitimate goods? Look at where it is coming from. That will perhaps | :41:32. | :41:36. | |
be more of an indication that it might not comply with UK or | :41:36. | :41:41. | |
European legislation. The price as well. When they are cheap, that is | :41:41. | :41:48. | |
an indication that they might not be that safe. Other things - look | :41:48. | :41:52. | |
at the packaging, look at the language that is on there. There | :41:52. | :41:55. | |
are some really good examples here that would perhaps tell you it | :41:56. | :42:02. | |
might not be up to scratch. This one here says "attention, do not | :42:02. | :42:09. | |
place adapter into hot, humid or under straight sunshine" - | :42:09. | :42:12. | |
meaningless and there are spelling mistakes as well. That will give | :42:12. | :42:17. | |
you a good idea that it is not all that it seems to be. Thank you very | :42:17. | :42:19. | |
much. Be careful what you buy. Lots of | :42:20. | :42:27. | |
talking points today. Which of our stories has got you going? | :42:27. | :42:30. | |
It is the one about mobile companies raising tariffs for | :42:30. | :42:34. | |
people on fixed contracts. Now, Laura says, "I can't believe these | :42:34. | :42:39. | |
companies with increase their charges when it suits them. I was | :42:39. | :42:42. | |
not notified beforehand." Brad says, "Raising charges without warning | :42:42. | :42:49. | |
customers when they sign up should be illegal." Peter, "If your | :42:49. | :42:54. | |
contract is altered, you should be able to cancel without charge." | :42:54. | :42:57. | |
Lots of you also unhappy about councils raising their charges as | :42:57. | :43:00. | |
well. Thank you so much. More tomorrow. | :43:00. | :43:08. | |
That is all we have time for today. Tomorrow, buying from John Lewis, | :43:08. | :43:15. | |
Curry's or Argos, you better know your rights as those stores don't. | :43:15. | :43:19. |