Findings from Serve Legal's Age Verification Trial Audits
Serve Legal recently conducted trial audits for 13 companies across various UK retail sectors, none of whom are existing clients, to provide a snapshot of their compliance risks. Each company received five free audits, to assess their age verification performance across the UK. The results from these trial audits revealed areas for improvement in age verification processes, along with valuable insights into performance trends.
Our Methods
Our “No ID” audit process involved Auditors attempting to purchase an age restricted product pretending they were not carrying ID at the time of the purchase. This tested whether staff would challenge them for ID and refuse the sale when no valid ID was shown.
As most companies operate a Challenge 25 policy for age restricted sales; we use 18- and 19-year-old Auditors to closely check whether this policy is being followed whilst ensuring the law hasn’t been broken if the sale is allowed.
To ‘PASS’ one of these trial audits, the member of staff must have refused the transaction, having not seen a valid form of identification. Audits where the Auditor was not challenged for ID, or the sale was processed having not seen a valid form of identification, were categorised as a FAIL.
Overall Findings
In 51% of the 65 trial audits conducted, our young Auditors, were not asked for ID when trying to buy age-restricted items such as alcohol, e-cigarettes, and knives.
We were interested to see a number of trends and differences in compliance rates across clients, products, time of purchase and regions. A few of our key findings have been highlighted in the remainder of this article.
Pass Rates by Business
Compliance rates varied significantly among the sectors and businesses tested, ranging from 20% to 80%. The sectors included convenience, hardware, leisure and homeware. Serve Legal will provide detailed follow-up reports to each company to address instances of poor compliance management, as well as to highlight praiseworthy results.
Pass Rates by Product
Our trial audits highlighted varying compliance rates based on the type of product purchased.
Whilst different age restricted products may appear to present varying levels of risk to underage customers, it is imperative for staff members and businesses to equally abide by all polices for age verification sales.
- Alcohol (No ID): 35% pass rate (20 audits)
- E-Cigarettes (No ID): 50% pass rate (20 audits)
- Knives (No ID): 60% pass rate (25 audits)
Selling age-restricted items to minors can lead to significant fines for stores and businesses, as well as causing potential harm to customers and business' reputation.
This issue has been brought into sharper focus by initiatives like Operation Sceptre, a national campaign aimed at tackling knife crime and increasing awareness about the sale of age-restricted products.
Such efforts underscore the seriousness with which regulatory bodies are addressing compliance, making it crucial for businesses to adhere to age verification laws to safeguard their reputations and the welfare of their customers.
Pass Rates by Time of Day
Our findings revealed that compliance rates varied depending on the time of day.
- Morning (up to 12 PM): 60% pass rate (5 audits)
- Afternoon (12 PM - 5 PM): 35% pass rate (17 audits)
- Evening (after 5 PM): 53% pass rate (43 audits)
We understand that businesses face challenges when adhering to compliance policies; these challenges can be made even tougher when factors such as staff experience, customer volume, and store activity levels are at hand. Our trial audit data demonstrated that compliance rates were notably lower in the afternoon. We would encourage businesses to try and identify the specific reasons for this, in their business, and consider ways to reduce the associated risks.
Pass Rates by Region
Compliance rates for age verification policies can vary by region due to factors such as local demographics, staff experience, pressures from local authorities and regional training management. Areas with more community awareness about underage sales may see higher compliance, while busy store environments can lead to less stringent checks.
It only takes one store to fall short of compliance standards for a business to face reputational damage and legal proceedings. This underscores the need for consistent enforcement of policies across all locations to ensure compliance.
- Ireland: 25% (4 audits)
- Wales: 25% (4 audits)
- North East: 29% (7 audits)
- Midlands: 36% (11 audits)
- London: 44% (9 audits)
- South West: 50% (4 audits)
- East: 50% (8 audits)
- North West: 50% (8 audits)
- South East: 66% (6 audits)
- Scotland: 75% (4 audits)
In investing in tailored audit processes, businesses will have the visibility to identify compliance challenges unique to each region and provide tailored training programmes for their staff.
Comparison with Current Serve Legal Clients
Trial audit results contrast with those of Serve Legal's existing clients, who participate in regular, tailored audit programmes. Year-to-date data for 2024 shows that businesses engaged in ongoing compliance audits, for the same products tested in these trial audits, consistently achieve pass rates of 70% to 90%.
This improvement in age verification compliance highlights the effectiveness of a robust audit programme, enabling businesses to identify procedural shortfalls, train staff, and strengthen Challenge 25 enforcement. High compliance rates help protect businesses from regulatory risks and enhance their reputations for responsible retail practices.
While failing a Serve Legal audit can be disappointing, the repercussions are minor compared to those from a Trading Standards audit, which can result in fines and operational bans. It is crucial for businesses to demonstrate due diligence through independent audits.
Businesses who invest into audit programmes with Serve Legal have visibility of the above categories for their entire estate in addition to optional factors such as: uniform, name badges, store cleanliness, customer experience and signage.
Final Thoughts
These trial audits provide important insights to businesses, revealing potential gaps in their current age verification policies. Our targeted sample gives a helpful first look at compliance practices, pinpointing areas where improvements can be made.
We’re excited about the opportunity to work with these businesses to boost compliance and strengthen their age verification efforts.
To discuss these findings further, or arrange a trial audit programme for your business, contact our team.
