The British Retail Consortium (BRC) has welcomed a new voluntary code aimed at regulating the provision of store cards, which has also received a positive reception from the government.
Under the terms of the new guidelines, retailers will not offer customers promotions and special discounts for at least seven days after signing up for one of the cards, while firms will also be prohibited from paying staff commission for promoting such schemes.
“There are nearly 13 million store card accounts in the UK but credit limits are low and many customers pay off the balance each month,” said BRC director-general Stephen Robertson. “Introducing a week-long separation between taking out a store card and receiving discounts is a common sense compromise which will give people enhanced consumer protection.”
Financial secretary to the Treasury Mark Hoban added that the measures were intended as a response to public concern about retailers’ store card sales practices and said the new code was a “strong package”.
Earlier in the week, the BRC admitted that some shops are hoping the impending festive period will hand them a “lifeline” after a sharp drop in footfall during the third quarter.
