I was reading recently about a faulty product that Which? suggested people should stop using it immediately following an investigation by the consumer watchdog. Rather worryingly, investigators stated that the product’s CE mark, normally associated with having passed rigorous European safety standards was misleading. Some Chinese companies use a similar CE mark to designate ‘China Export’. Other companies simply fake the security mark because there is no central database to check whether it has been verified and it can be self-declared by companies. The quote that most interested me was ‘Companies get away with it until they don’t’ said Clever Compliance chief executive Max Stralin. This highlights that the system isn’t perfect, and the buyer should be aware.
In essence, there is a system in place to stop faulty goods, but it still relies on Caveat Emptor. The buyer must beware.
The the world of financial intermediation, there is a system of regulation but the buyer must still beware.
So how do you ensure you carry out due diligence before you proceed?