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Water insurance promotion raises consumer watchdog angst

Article by Simon Christopher
Posted: 18/3/2012 - Last updated: -
Rating: 0.00 (0 votes)



Scottish Water has been told it's apparent marketing of a private insurance scheme is inappropriate given it's role as a publicly-owned company.

Consumers Focus, the consumer watchdog, made the comments after dozens of complaints from the public over marketing materials. Thousands of customers received letters from Homeserve insurance about taking out cover for frozen or damaged pipes. However, the letters were sent out in envelopes bearing the Scottish Water logo, which was used in return for a financial payment.

A survey by Consumers Focus found that the majority of people who received such a letter believed it had been sent by Scottish Water. It said this confusion gave a misleading picture about whether and how the public body endorsed the private firm.

Scottish Water said such marketing was commonplace and noted that the envelope contained both logos and merely listed the water firm as "introducing" the insurer.



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