Consumers are finding it too hard to win compensation for misleading and aggressive trading practices and the law must be reviewed, the Law Commission said today.

Opening a consultation on the matter, the commission said that routes to redress for ripped-off consumers are 'difficult’ and ‘far from clear’, and many victims of scams are ‘among the most vulnerable in society’.

It said that reform will be ‘limited and cautious’, but has proposed introducing a new Consumer Act to cover private law actions between consumers and businesses.

Business-to-business transactions will not be covered.

Under the existing law, governed by the Consumer Protections from Unfair Trading Regulations 2008, consumers do not have a right to compensation, and must instead rely on ‘complex’ and ‘confusing’ private law actions, the commission said.

David Hertzell, the Law Commissioner leading on the project for England and Wales, said: ‘The Law Commission believes consumers should have a clear right to redress for misleading and aggressive commercial practices.

‘Simplifying the law will give more confidence to consumers and help drive rogue traders out of the market place, where currently they damage the reputation and livelihood of good, honest businesses.’

Gillian Guy, chief executive of Citizens Advice, said: ‘These proposals are valuable and will help to fill gaps in consumer protection law, where bad practice and downright rip-offs so often slip through the net.’

The Law Commission cited research by Consumer Focus suggesting that two-thirds of the population have been targeted by unscrupulous traders.

The consultation closes on 12 July.