Regulators
The UK’s key regulators are putting pressure on firms to deal with the ‘intelligibility problem’.
The Competition and Markets Authority (CMA) and the Financial Conduct Authority (FCA) are just a couple of bodies spearheading clarity for consumers.
Regulations are tightening up sector by sector.
If the Digital Markets, Competition and Consumer Bill becomes law in 2024, the CMA (the Consumer Rights Act enforcer) will gain extensive new powers to police what constitutes ‘intelligibility’ in practice and the reasonable steps to attain it. Breaches could result in fines of up to 10% of global annual turnover, indicating that the ‘intelligibility problem’ cannot be disregarded.
The FCA is leading the way in the financial services industry with its Consumer Duty, which came into effect on 31st July 2023. Product and service information must now be expressed “in plain and intelligible language” so that consumers can make informed decisions and purchases.
Other regulators are pushing for more understandable communications, like the Gambling Commission, the Solicitors Regulation Authority, and the Law Society Scotland.
Amplifi has engaged with these regulators (and more) to shape its tool and to understand the emerging landscape.
Smaller businesses benefit from intelligibility too.
The ‘intelligibility problem’ has not been confined to individuals. Small- and medium-sized businesses are also badly affected.
Most SMEs do not have immediate access to legal advice, unlike larger corporate organisations.
Clearer, simpler, more understandable contracts and information can significantly help SMEs. This results in:
greater trust;
fewer queries and misunderstandings;
fewer delays, and
faster time to contract.