House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

85

House of Commons

Thursday 6 March 2014

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Consumer Rights Bill

Note

The Amendments have been arranged in accordance with the Order of the

Committee [11 February 2014].

Stella Creasy

Stephen Doughty

59

Clause  55,  page  32,  line  19,  at end insert—

‘(1A)
Where the quality of provision of services has been deemed to be hazardous or so

poor as to cause the consumer to reasonably lose confidence in the trader’s ability

to provide services which they would wish to purchase, the consumer may refuse

a repeat performance and exercise their right to price reduction under section 56.’.

Stella Creasy

Stephen Doughty

62

Clause  56,  page  32,  line  34,  at end insert—

‘(1A)
When considering what is an appropriate amount for the purpose of this section,

consideration shall be given to reasonable steps that will return the consumer to

the position they would be in if the trader had not breached the contract in the first

place.’.

Public Bill Committee: 6 March 2014
86

Consumer Rights Bill, continued

Stella Creasy

Stephen Doughty

61

Clause  56,  page  32,  line  36,  at end insert—

‘(2A)
The consumer is entitled to this refund within 30 days of agreeing that a refund is

to be paid using the same payment method used in the original transfer.

(2B)
Where the trader fails to ensure this refund is provided within this timeframe the

consumer is entitled to seek damages from the trader commensurate with the

impact of any loss caused by this delay unless the consumer has decided to waive

this right to a refund within this timeframe.’.

Stella Creasy

Stephen Doughty

60

Clause  56,  page  32,  line  43,  at end insert—

‘(c)
the consumer has exercised their right under section 55(1A).’.

Jenny Willott

44

Schedule  1,  page  49,  line  30,  at end insert—

‘Consequential repeal and revocation

55
In consequence of the amendments made by this Schedule—

(a)
omit paragraph 5(9) of Schedule 2 to the Sale and Supply of Goods

Act 1994, and

(b)
omit paragraph 97 of Schedule 2 to the Consumer Protection from

Unfair Trading Regulations 2008 (SI 2008/1277).’.

Member’s explanatory statement

This amendment repeals or revokes provisions which are redundant because they amend provi

sions which are in turn repealed by Schedule 1 to the Bill.

Stella Creasy

Stephen Doughty

63

Clause  62,  page  35,  line  32,  at end insert—

‘(2A)
For the purposes of this Act, consumer notices are considered to be any

information or requirements about the contract conveyed to the consumer before

or during the commissioning of the contract by the trader which may reasonably

be considered designed to influence the behaviour of the consumer.’.

Public Bill Committee: 6 March 2014
87

Consumer Rights Bill, continued

Stella Creasy

Stephen Doughty

70

Clause  63,  page  36,  line  25,  at end insert—

‘(1A)
Where a contract includes a term which is included in either Part 1 or Part 2 of

Schedule 2 of this Act, the trader must draw to the attention of the consumer these

terms and their rights to challenge these under this legislation prior to purchase.’.

Stella Creasy

99

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

Public Bill Committee: 6 March 2014
88

Consumer Rights Bill, continued

(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.’.

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

Schedule  2,  page  52,  line  17,  at end insert—

‘23A
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

decided 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.’.

Public Bill Committee: 6 March 2014
89

Consumer Rights Bill, continued

Stella Creasy

Stephen Doughty

73

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

cultural and linguistic factors.’.

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

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 Royal Assent of this Act 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 consumer contract or consumer notices which may

reasonably be understood to apply to them.

(4)
This information shall be provided to the consumer—

(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 data protection law.

(5)
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

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

‘(6)
For the purposes of transparency, the Secretary of State’s report to Parliament

within three months of Royal Assent of this Act under subsection (3) shall include

how the government intends to ensure that salient, non-commercially sensitive

Public Bill Committee: 6 March 2014
90

Consumer Rights Bill, continued

information is published on all contracts offering services on behalf of any

Government department or local or public authority.’.

Stella Creasy

101

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

‘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.’.

Stella Creasy

102

Schedule  3,  page  55,  line  10,  at end insert—

‘(5A)
The CMA shall publish an annual assessment of the extent of consumer detriment

caused by the use of unfair 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

Schedule  5,  page  74,  line  37,  leave out sub-paragraphs (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.

Public Bill Committee: 6 March 2014
91

Consumer Rights Bill, continued

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.

Stella Creasy

103

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

‘(45A)
The Secretary of State shall within three months of Royal Assent of this Act

produce a report on the effect of an area enforcer, in order to protect

consumers, to—

(a)
issue enforcement orders, as set out in Part 8 of the Enterprise Act

2002, for traders who persistently cause detriment within a local area;

and;

(b)
enable the disclosure to consumers and other interested parties without

legal liability of complaints they have received regarding traders

when—

(i)
a consumer has consented to their contact details and the

nature of their complaint being shared with others who wish

to raise concerns about a trader; and

(ii)
the area 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.



© Parliamentary copyright	Revised 6 March 2014