Session 2013 - 14
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Public Bill Committee: 6 March 2014                     

92

 

Consumer Rights Bill, continued

 
 

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.

 

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),’.


 
 

Public Bill Committee: 6 March 2014                     

93

 

Consumer Rights Bill, continued

 
 

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.

 

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)”.


 
 

Public Bill Committee: 6 March 2014                     

94

 

Consumer Rights Bill, continued

 
 

    (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.

 

      (2)  

In subsection (2)—

 

(a)    

omit paragraph (a), and

 

(b)    

in paragraph (b), for “29(1) to (5), (6)(a) and (7)” substitute “29(4) and

 

(7)”.

 

      (3)  

After subsection (2) insert—

 

“(2A)    

For the investigatory powers available to a local weights and measures

 

authority for the purposes of the duty to enforce imposed by virtue of

 

subsection (1) (in addition to the powers in Part 4 of the Consumer

 

Protection Act 1987), see Schedule 5 to the Consumer Rights Act

 

2014.”’.

 

Member’s explanatory statement

 

This amendment introduces consequential amendments to the Fireworks Act 2003 so as to remove

 

references within the 2003 Act to those parts of the Consumer Protection Act 1987 which are to be

 

repealed and instead insert a reference to the generic set of investigatory powers contained within

 

the Bill.

 


 

Stella Creasy

 

106

 

Clause  79,  page  42,  line  12,  at end insert—

 

‘(1A)    

Within three months of Royal Assent of this Act, the Secretary of State shall set

 

out guidance on requiring all statutory regulators to provide—

 

(a)    

formal representation for consumers on all governance bodies;

 

(b)    

an annual competition and consumer rights health check within their

 

industry which has been approved by the Consumer Association; and

 

(c)    

periodic consideration of whether there is a need for independent advice,

 

free at the point of delivery, to ensure consumers’ rights are protected, in

 

which case the Secretary of State shall review the case for the

 

introduction of levies to support this provision.’.


 
 

Public Bill Committee: 6 March 2014                     

95

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

105

 

Clause  79,  page  42,  line  14,  at end insert—

 

‘(3)    

For the purposes of the enhanced consumer measures set out in Schedule 7 the

 

Secretary of State shall publish a review of the powers of Trading Standards

 

Officers to consider—

 

(a)    

the number of enforcement actions by Trading Standards taken under the

 

enhanced consumer protections set out in this Act;

 

(b)    

any additional operational costs to Trading Standards Services associated

 

with the new powers and procedures under sections 77 and 79 of this Act;

 

and

 

(c)    

the establishment of a statutory minimum standard for all officers

 

carrying out Trading Standards functions in any local authority and the

 

role of a competent body to set, test against, apply and monitor those

 

standards.’.

 

Stella Creasy

 

107

 

Clause  79,  page  42,  line  14,  at end insert—

 

‘(3)    

The Secretary of State shall publish an annual assessment of the cumulative

 

impact of public policy in the area of consumer rights on household bills and on

 

affordability, with particular regard for low income households.’.

 

Stella Creasy

 

108

 

Clause  79,  page  42,  line  14,  at end insert—

 

‘(3)    

Within three months of Royal Assent of this Act the Government will publish a

 

report detailing how it will ensure better outcomes for consumers of public

 

services and more efficient decision-making processes;

 

(4)    

For the purposes of this Act a public service is any provided to the consumer

 

directly by a Government department, or local or public authority, or a trader

 

acting on behalf of these organisations;

 

(5)    

For the purposes of this Act a person shall be a consumer of public services when

 

they enter any agreement, contract, contract notice or proposed contract for

 

receiving a service which the individual has a direct role in commissioning;

 

(6)    

A report under subsection (3) will consider—

 

(a)    

how each public service provider will ensure a formalised approach to

 

ensure independent advocacy is available for consumers at an early stage

 

in the decision-making process for the provision of public services;

 

(b)    

the nature of an independent advocate to participate in this process and

 

the definition of independence including how this could be supported by

 

the conduct of any service provider;

 

(c)    

the effect of a breach in a consumer’s statutory rights as set out by this

 

legislation when a direct commissioning contract is in place;

 

(d)    

what formal status independent advice notice issued will have in relation

 

to local authority decision-making, especially in instances where a public

 

service continues to act contrary to such information and formal legal

 

redress is sought;

 

(e)    

the role of the public sector ombudsman services in overseeing any such

 

approach; and


 
 

Public Bill Committee: 6 March 2014                     

96

 

Consumer Rights Bill, continued

 
 

(f)    

how a public service provider will report on their formalised approach.’.

 


 

Stella Creasy

 

109

 

Clause  80,  page  42,  line  16,  at end insert—

 

‘(1A)    

A year after the commencement of this section, the Secretary of State will review

 

the powers set out in Schedule 8 and report to Parliament on—

 

(a)    

the number of private actions commenced under this power;

 

(b)    

the redress provided to consumers under these private actions; and

 

(c)    

the scope and potential effect of expanding these private actions powers

 

to all areas of consumer protection law.’.

 


 

New Clauses

 

Consumer protection for small business operations

 

Stella Creasy

 

Stephen Doughty

 

NC1

 

To move the following Clause:—

 

‘The Government shall publish a report within three months of the enactment of

 

this Act to set out how businesses with fewer than 250 employees can secure

 

appropriate consumer protection in their purchase of goods and services for use

 

within their business operations.’.

 


 

Right to corrective action

 

Mark Durkan

 

Fiona O’Donnell

 

NC2

 

To move the following Clause:—

 

‘(1)    

This section applies if either—

 

(a)    

the responsible economic actor has identified that goods supplied present

 

a health and safety risk to the conusmer, or

 

(b)    

the appropriate authority has identified that goods supplied present a risk

 

to the public safety, and

 

    

as a result, the product is subject to corrective action by either party (a “recall

 

action”).

 

(2)    

The consumer has the right to expect that the responsible economic actor for any

 

goods supplied subject to a recall action must take all reasonable steps to inform


 
 

Public Bill Committee: 6 March 2014                     

97

 

Consumer Rights Bill, continued

 
 

all persons affected, or likely to be affected by the safety risks from the goods,

 

within the shortest period of time practicable.

 

(3)    

The consumer, if placed at risk by goods subject to a recall action, has the right

 

to prompt and effective action by the economic actor of that product to ensure

 

that—

 

(a)    

the defect posing a safety risk to any persons affected or likely to be

 

affected is eliminated;

 

(b)    

the actions required to achieve (a) do not cause significant inconvenience

 

to the consumer; and

 

(c)    

all costs associated with the recall action are borne by the reponsible

 

economic actor.

 

(4)    

The Secretary of State will periodically gather and make publicly available

 

information relating to safety incidents caused by recalled goods, and estimates

 

of how many such goods still remain unaccounted for.

 

(5)    

The effectiveness of recall actions, and the procedures in place to achieve

 

successful recalls, will be the subject of periodic review by the Secretary of State,

 

with reference to public information on recalls in subsection (4) and any other

 

relevant data.

 

(6)    

For the purposes of subsections (4) and (5), the Secretary of State must consult

 

with—

 

(a)    

market regulators;

 

(b)    

relevant authorities; and

 

(c)    

any other bodies he thinks appropriate.

 

(7)    

For the purposes of this section “economic actor” means—

 

(a)    

a “trader” as defined in section 2(2), or

 

(b)    

a manufacturer of “goods” as defined in section 2(8).’.

 


 

Right to supply unique goods

 

Stella Creasy

 

Stephen Doughty

 

NC3

 

To move the following Clause:—

 

‘(1)    

A trader offering unique goods for sale must provide the consumer with

 

information to enable the consumer to directly identify the unique qualities of the

 

good they are purchasing.

 

(2)    

Where a consumer cannot confirm the goods are unique in person, the consumer

 

has the right to reject these goods at any point prior to consumption.

 

(3)    

Where the goods are for use in relation to an event of national significance the

 

Secretary of State for Culture, Media and Sport shall reserve the right to designate

 

further restrictions and conditions on the sale and resale of these goods in relation

 

to their unique qualities.

 

(4)    

For the purposes of this section unique goods are defined as having distinct

 

characteristics which would affect—

 

(a)    

the enjoyment of the goods by the consumer;

 

(b)    

the use of the goods by the consumer; or

 

(c)    

the inherent value of the goods in question.


 
 

Public Bill Committee: 6 March 2014                     

98

 

Consumer Rights Bill, continued

 
 

(5)    

For the purpose of this section an event of national significance is one which is

 

designated for this purpose as such by the Secretary of State for Culture, Media

 

and Sport under the provisions of section 299 (categorisation of listed events) of

 

the Communications Act 2003.’.

 


 

Guidance on new investigatory powers

 

Stella Creasy

 

NC4

 

To move the following Clause:—

 

‘(1)    

The Secretary of State will consult on and publish detailed guidance for all

 

Trading Standards Services in relation to the changes to powers under section

 

77.’.

 


 

Ombudsman Services

 

Stella Creasy

 

NC5

 

To move the following Clause:—

 

‘(1)    

The Secretary of State shall be responsible for the licensing of ombudsman

 

services and delegating powers to competent authorities on behalf of the

 

Government to provide effective access to alternative dispute resolution

 

processes as set out in the European Directive 2013/11/EU on alternative dispute

 

resolution.

 

(2)    

Within three months of Royal Assent of this Act the Secretary of State shall

 

publish guidance which forms the basis of the legal accreditation of the term

 

ombudsman which covers the following matters—

 

(a)    

the powers that any ombudsman may have in relation to the industry over

 

which they have supervision including any capacity to secure

 

compensation for consumers;

 

(b)    

the relationship and status of the traders’ dispute resolution procedures

 

on the conduct of any investigation by the ombudsman authority;

 

(c)    

powers to direct traders to comply with their investigatory proceedings;

 

(d)    

powers to enforce breaches of regulations in individual cases;

 

(e)    

powers to make recommendations to regulators regarding conduct within

 

the industry they oversee which may be responsible for consumer

 

detriment;

 

(f)    

the nature of their independence and how this will be protected in

 

accordance with directive 2013/11/EU on alternative dispute resolution;

 

(g)    

the status that any advice that they may issue will have for both consumer

 

and trader including within legal proceedings;

 

(h)    

the duty for all ombudsman services to report to Parliament on the nature

 

and persistence of any complaints they receive and the outcome of any

 

resolution process;


 
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Revised 6 March 2014