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Public Bill Committee: 4 March 2014                     

70

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

99

 

Parliamentary Star    

Schedule  2,  page  50,  line  11,  after ‘realisation’, insert ‘or management or

 

delivery’.

 

Stella Creasy

 

Stephen Doughty

 

66

 

Schedule  2,  page  51,  line  10,  at end insert—

 

‘(14A)    

A term (including those within the scope of paragraph 22 of this Schedule) which

 

has the object or effect of permitting a trader to increase the price of, or alter

 

unilaterally any characteristics of goods, digital content or services during any

 

minimum contract period or before the end of a contract of a specified duration

 

without a valid reason or where it is reasonably foreseeable that the consumer

 

would not be free to dissolve the contract without being disadvantaged.’.

 

Stella Creasy

 

Stephen Doughty

 

64

 

Schedule  2,  page  51,  line  37,  at end insert—

 

‘(21)    

A term which requires a consumer to pay a charge for or be liable for an element

 

of a good or service that another party has also been charged for in the course of

 

the same transaction.’.

 

Stella Creasy

 

Stephen Doughty

 

65

 

Schedule  2,  page  51,  line  37,  at end insert—

 

‘(22)    

A term which seeks to restrict the ability of a consumer to access information to

 

enable them to ascertain whether the contract they are being offered could

 

undermine their statutory rights.’.

 

Stella Creasy

 

Stephen Doughty

 

67

 

Schedule  2,  page  51,  line  37,  at end insert—

 

‘(23)    

A term which has the object or effect of enabling a trader to increase the price of

 

the contract unilaterally without a valid reason and where the consumer is unable

 

to—

 

(a)    

enter into a new regulated mortgage contract or home purchase plan or

 

vary the terms of an existing regulated mortgage contract or home

 

purchase plan with the existing mortgage lender or home purchase

 

provider; or

 

(b)    

enter into a new regulated mortgage contract or home purchase plan with

 

a new mortgage lender or home purchase provider.

 

    

The terms “regulated mortgage contract” and ‘home purchase plan’ have the

 

same meaning as in the Financial Services and Market Act 2000 (Regulated

 

Activities) Order 2001 as amended.’.

 
 

Public Bill Committee: 4 March 2014                     

71

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

Stephen Doughty

 

68

 

Schedule  2,  page  51,  line  37,  at end insert—

 

‘(24)    

If the contract is for a financial service, a term that directly causes financial

 

detriment to the consumer such that it can be seen to reasonably alter the capacity

 

of the consumer to pay the costs of the contract.’.

 

Stella Creasy

 

Stephen Doughty

 

69

 

Schedule  2,  page  51,  line  37,  at end insert—

 

‘(25)    

Where the service provided is for an additional assistance service as set out in

 

section 51, a term providing for charges unless the original provider of the service

 

has approved this service and range of costs for its provision within which this

 

charge is included.’.

 

Stella Creasy

 

100

 

Parliamentary Star    

Schedule  2,  page  52,  line  17,  at end add ‘, where the determination of whether a

 

consumer is able to dissolve a contract in the case of contracts provided by any

 

Government department or local or public authority shall be determined by whether a

 

reasonable person would consider that dissolving the contract should be possible.’.

 

 

Stella Creasy

 

Stephen Doughty

 

72

 

Clause  64,  page  37,  line  19,  leave out from ‘that’ to end of line 23 and insert ‘the

 

assessment is of the appropriateness of the price payable under the contract by comparison

 

with the goods, digital content or services supplied under it, but only where the price

 

payable does not relate to future variable fees or charges payable under the contract.’.

 

Stella Creasy

 

Stephen Doughty

 

71

 

Clause  64,  page  37,  line  30,  after ‘term’, insert ‘and it would form part of their

 

purchasing decision.’.

 

Stella Creasy

 

Stephen Doughty

 

73

 

Clause  64,  page  37,  line  32,  after ‘circumspect’, insert ‘, taking into account social,

 

cultural and linguistic factors.’.

 

 
 

Public Bill Committee: 4 March 2014                     

72

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

Stephen Doughty

 

74

 

Clause  68,  page  38,  line  41,  after ‘trader’, insert ‘, which for these purposes

 

includes a provider of financial services,’.

 

Stella Creasy

 

Stephen Doughty

 

75

 

Clause  68,  page  39,  line  2,  at end add—

 

‘(3)    

Whether that notice is a general statement of the consumer’s legal rights or

 

specifically with regard to the obtaining of legal advice or assistance by an injured

 

consumer it shall be drafted by and shall only recommend or direct an injured

 

consumer to bodies that are wholly independent of the trader or anyone connected

 

to the trader.’.

 

Stella Creasy

 

110

 

Parliamentary Star    

Clause  68,  page  39,  line  2,  at end add—

 

‘(3)    

For the purposes of transparency, the Secretary of State shall report to Parliament

 

within three months of this legislation being enacted on how the Government

 

intends to ensure that all traders offering services on behalf of any Government

 

department or local or public authority shall ensure the consumer is able to access

 

information regarding any contract or contract notices which may reasonably be

 

understood to apply to them. This information shall be provided to the consumer

 

in the following format—

 

(a)    

in a form which enables the consumer to assess whether the price being

 

paid for the service is reasonable; and

 

(b)    

in such form as allows any government, local or public authority to use

 

this information to secure social and consumer benefits insofar as this

 

complies with existing date protection law.

 

(4)    

The Secretary of State’s report shall include information on consumers’ rights to

 

access this data and how they may exercise their rights under this Act subject to

 

data protection legislation.’.

 

Stella Creasy

 

98

 

Parliamentary Star    

Clause  68,  page  39,  line  3,  at end insert—

 

‘(3)    

For the purposes of transparency, the Secretary of State shall report to Parliament

 

within three months of this Act receiving Royal Assent on how the Government

 

intends to ensure that salient, non-commercially sensitive information is

 

published on all contracts offering services on behalf of any Government

 

department or local or public authority.’.

 

 

Stella Creasy

 

101

 

Parliamentary Star    

Schedule  3,  page  53,  line  1,  at end add—

 

  ‘(1A)  

For the purposes of this Schedule, consumer notices shall include any conduct

 

by a trader which may reasonably be considered to breach the capacity of a

 

consumer to exercise their rights in entering or maintaining a contract.’.

 
 

Public Bill Committee: 4 March 2014                     

73

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

102

 

Parliamentary Star    

Schedule  3,  page  55,  line  10,  at end insert ‘The CMA shall publish an annual

 

assessment of the extent of consumer detriment caused by the use of unfair contract terms

 

as defined in this legislation, including detriment unknown to the consumer.’.

 

 

Jenny Willott

 

76

 

Schedule  5,  page  65,  line  13,  after ‘under’, insert ‘—(a)’.

 

Member’s explanatory statement

 

This amendment and amendments 77 to 86 reflect the fact that enforcement action is sometimes

 

taken under legislation under which the enforcer’s legislation is made, not under the enforcer’s

 

legislation itself. For example, a breach of safety regulations under the Consumer Protection Act

 

1987 is an offence under that Act not the regulations.

 

Jenny Willott

 

77

 

Schedule  5,  page  65,  line  14,  at end insert ‘, or

 

(b)    

legislation under which the enforcer’s legislation is made.’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 

Stella Creasy

 

104

 

Parliamentary Star    

Schedule  5,  page  74,  line  37,  leave out subsections (3) to (5).’.

 

Jenny Willott

 

78

 

Schedule  5,  page  84,  line  9,  leave out ‘under that legislation’ and insert ‘by the

 

enforcer’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 

Jenny Willott

 

79

 

Schedule  5,  page  84,  line  10,  leave out ‘under the enforcer’s legislation’ and insert

 

‘by the enforcer’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 

Jenny Willott

 

80

 

Schedule  5,  page  87,  line  7,  after ‘enforce’, insert—

 

‘(ca)    

legislation under which legislation mentioned in paragraph (c) is made,’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 
 

Public Bill Committee: 4 March 2014                     

74

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

103

 

Parliamentary Star    

Schedule  5,  page  87,  line  28,  at end add—

 

    ‘(8)  

The Government shall within three months of this Act receiving Royal Assent

 

produce a report on the benefits of a local enforcer being able to exercise the

 

following powers to protect consumers—

 

(a)    

the issuing of Stop Now Order Regulations (as statutorily defined) for

 

traders who persistently cause consumer detriment within a local area;

 

(b)    

procedures to enable the disclosure to consumers and other interested

 

parties without legal liability of complaints they have received

 

regarding traders in the following circumstances—

 

(i)    

where a consumer has consented to their contract details and

 

the nature of their complaint being shared with others who

 

wish to raise concerns about a trader; and

 

(ii)    

where the local enforcer considers the behaviour of the trader

 

to have breached consumer protection regulations and it is in

 

the public interest for their conduct to be known.’.

 

Jenny Willott

 

81

 

Schedule  5,  page  87,  line  36,  at end insert—

 

‘(aa)    

an offence under legislation under which legislation within paragraph (a)

 

is made,’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 

Jenny Willott

 

82

 

Schedule  5,  page  87,  line  42,  after ‘(a)’, insert ‘, (aa)’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 

Jenny Willott

 

83

 

Schedule  5,  page  88,  line  7,  at end insert—

 

‘(aa)    

an offence under legislation under which legislation within paragraph (a)

 

is made,’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 

Jenny Willott

 

84

 

Schedule  5,  page  88,  line  9,  after ‘(a)’, insert ‘ or (aa)’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 

Jenny Willott

 

85

 

Schedule  5,  page  88,  line  17,  at end insert—

 

‘(aa)    

an offence under legislation under which legislation within paragraph (a)

 

is made,’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 
 

Public Bill Committee: 4 March 2014                     

75

 

Consumer Rights Bill, continued

 
 

Jenny Willott

 

86

 

Schedule  5,  page  88,  line  19,  after ‘(a)’, insert ‘ or (aa)’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 76 also applies to this amendment.

 

 

Jenny Willott

 

87

 

Schedule  6,  page  92,  line  17,  at end insert—

 

‘44A      

In section 44(4) (service of documents)—

 

(a)    

omit “28(2) or”, and

 

(b)    

omit “purchased or” in each place.’.

 

Member’s explanatory statement

 

This amendment makes a consequential amendment to section 44(4) of the Consumer Protection

 

Act 1987 which is necessary following the repeal of section 28 of that Act by the Bill.

 

Jenny Willott

 

88

 

Schedule  6,  page  95,  line  5,  leave out ‘(h),’.

 

Member’s explanatory statement

 

This amendment modifies the amendments to the Criminal Justice and Police Act 2001 following

 

the proposal to retain specific powers within section 29(4) of the Consumer Protection Act 1987

 

and regulation 22(4) of the General Product Safety Regulations 2005. Those specific powers will

 

now be carved out of the repeals in the 2001 Act.

 

Jenny Willott

 

89

 

Schedule  6,  page  95,  line  5,  leave out ‘(o),’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 88 also applies to this amendment.

 

Jenny Willott

 

90

 

Schedule  6,  page  95,  line  5,  at end insert—

 

‘(aa)    

in paragraph (h) for “29” substitute “29(4)”,

 

(ab)    

in paragraph (o) for “22” substitute “22(4)”,’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 88 also applies to this amendment.

 

Jenny Willott

 

91

 

Schedule  6,  page  95,  line  34,  leave out paragraph (g).

 

Member’s explanatory statement

 

The explanatory statement for amendment 88 also applies to this amendment.

 
 

Public Bill Committee: 4 March 2014                     

76

 

Consumer Rights Bill, continued

 
 

Jenny Willott

 

92

 

Schedule  6,  page  95,  line  36,  leave out ‘first and second paragraphs’ and insert

 

‘first paragraph’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 88 also applies to this amendment.

 

Jenny Willott

 

93

 

Schedule  6,  page  95,  line  40,  at end insert—

 

  ‘(2A)  

In paragraph 45 for “29(4), (5) and (6)” substitute “29(4)”.

 

    (2B)  

In the second paragraph 73G for “22(4) to (6)” substitute “22(4)”.’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 88 also applies to this amendment.

 

Jenny Willott

 

94

 

Schedule  6,  page  96,  line  2,  leave out ‘3, 4A,’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 88 also applies to this amendment.

 

Jenny Willott

 

95

 

Schedule  6,  page  96,  line  2,  leave out ‘8, 9A,’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 88 also applies to this amendment.

 

Jenny Willott

 

96

 

Schedule  6,  page  96,  line  2,  at end insert—

 

  ‘(2A)  

In paragraph 3 for “29” in each place substitute “29(4)”.

 

    (2B)  

In paragraph 4A—

 

(a)    

for “23” substitute “22(4)”, and

 

(b)    

for “22” substitute “22(4)”.

 

    (2C)  

In paragraph 8 for “29” in each place substitute “29(4)”.

 

    (2D)  

In paragraph 9A—

 

(a)    

for the first “22” substitute “22(4)”, and

 

(b)    

for “products under regulations 22 of those Regulations.” substitute

 

“those items, as it applies to the seizure and detention of products

 

under regulation 22(4) of those Regulations.”’.

 

Member’s explanatory statement

 

The explanatory statement for amendment 88 also applies to this amendment. This amendment also

 

makes changes to remedy pre-existing errors in paragraphs 4A and 9A of Schedule 2 to the Crim­

 

inal Justice and Police Act 2001

 

Jenny Willott

 

97

 

Schedule  6,  page  97,  line  11,  at end insert—

 

‘Fireworks Act 2003 (c. 22)

 

79A(1)  

Section 12 of the Fireworks Act 2003 (enforcement) is amended as follows.

 
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