The watchdog looked into the issue of sales letters from the private firm being sent to thousands of households in Scotland in ‘Scottish Water’ branded envelopes. The letters contained information on “water supply pipe responsibilities” but then go on to try to sell the product of the insuring company.
The investigation indicated that over half of people thought the sales letter was sent directly from Scottish Water and most found the letter to be confusing.
Douglas Sinclair, Chair of Consumer Focus Scotland, commented: “Consumers expect to be able to trust information from their public services. It is unacceptable that people will have received a letter that they think is from Scottish Water but is in fact a carefully crafted sales tactic by a private insurance firm.
A spokesperson for Scottish Water said: “We have already addressed most of the issues raised by Consumer Focus Scotland (CFS) and they have acknowledged changes made to the Homeserve literature. We are happy to meet them again to discuss this.”