The National Consumer Council has slammed the Financial Services and Markets Bill for reducing consumers' legal protection when they buy pensions and insurance products.
It says that under the Bill consumers buying a faulty kettle will have more financial clout than those that buy a pension or insurance product that fails.
The Bill which is currently undergoing pre-parliamentary scrutiny does not have a set of consumer protection principles.
Consumers will have to rely on the FSA's 'principles for businesses' rules to protect their interests.
NCC chairman David Hatch says: "Its unfair to expect consumers to take responsibility for their own decisions on financial products. These are complex products that often involve a long-term and expensive commitment. Consumers just cannot afford to make mistakes in this area."