House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Public Bill Committee: 11 March 2014
116

Consumer Rights Bill, continued

Jenny Willott

113

Schedule  8,  page  103,  line  38,  after ‘(3)’ insert ‘which a person who has suffered

loss or damage may make in civil proceedings brought in any part of the United

Kingdom’.

Member’s explanatory statement

This amendment and amendment 114 clarify that the jurisdiction of the Tribunal is the same as the

High Court and Court of Session, subject to any differences relating to limitation or prescription.

Jenny Willott

114

Schedule  8,  page  104,  line  7,  at end insert—

‘(3A)
For the purpose of identifying claims which may be made in civil proceedings,

any limitation rules or rules relating to prescription that would apply in such

proceedings are to be disregarded.’.

Member’s explanatory statement

The explanatory statement for amendment 113 also applies to this amendment.

Jenny Willott

115

Schedule  8,  page  106,  line  21,  after ‘(5)’ insert ‘Subject to subsection (5A),’.

Member’s explanatory statement

This amendment and amendment 116 allow the Tribunal to award all or part of any unclaimed

damages in collective proceedings towards the costs of the representative.

Jenny Willott

116

Schedule  8,  page  106,  line  25,  at end insert—

‘(5A)
In a case within subsection (5) the Tribunal may order that all or part of any

damages not claimed by the represented persons within a specified period is

instead to be paid to the representative in respect of all or part of the costs or

expenses incurred by the representative in connection with the proceedings.’.

Member’s explanatory statement

The explanatory statement for amendment 115 also applies to this amendment.

Jenny Willott

117

Schedule  8,  page  111,  line  44,  leave out ‘only if that person’.

Member’s explanatory statement

This amendment and amendments 118 to 120 introduce a requirement for the Tribunal to consider

whether or not it is appropriate for a class member to act as a representative in collective settle

ment proceedings.

Jenny Willott

118

Schedule  8,  page  111,  line  46,  after ‘(a)’ insert ‘whether or not that person’.

Member’s explanatory statement

The explanatory amendment for amendment 117 also applies to this amendment.

Jenny Willott

119

Schedule  8,  page  111,  line  47,  leave out ‘or’ and insert ‘but’.

Member’s explanatory statement

The explanatory amendment for amendment 117 also applies to this amendment.

Public Bill Committee: 11 March 2014
117

Consumer Rights Bill, continued

Jenny Willott

120

Schedule  8,  page  112,  line  1,  leave out from ‘(b)’ to ‘the’ and insert ‘only if’.

Member’s explanatory statement

The explanatory amendment for amendment 117 also applies to this amendment.

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

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.

Public Bill Committee: 11 March 2014
118

Consumer Rights Bill, continued

(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.

(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.’.

Public Bill Committee: 11 March 2014
119

Consumer Rights Bill, continued

Guidance on new investigatory powers

Stella Creasy

Stephen Doughty

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

Stephen Doughty

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;

(i)
the duty for all ombudsman services to make recommendations to

Parliament on measures to address consumer detriment within the

industry for which they have oversight;

(j)
the duty on ombudsman services to provide formal consumer

representation within their governance structures;

Public Bill Committee: 11 March 2014
120

Consumer Rights Bill, continued

(k)
how competent authorities will ensure that there is no overlap,

duplication or gaps in the provision of ombudsman services to

consumers;

(l)
the completion of dispute resolution procedures within 90 days of the

complaint being received;

(m)
the limits to any costs a consumer would incur in participating in an ADR

process overseen by the ombudsman.

(3)
Any organisation unlicensed by the Secretary of State shall not be considered an

ombudsman.

(4)
The Secretary of State will also set out the penalties for the misuse of the term

ombudsman or the powers of ombudsman services.

(5)
The Secretary of State shall be responsible for ensuring consumers have a single

point of contact to identify the relevant ombudsman services.’.

Report on work of Implementation Group

Stella Creasy

Stephen Doughty

NC6

To move the following Clause:—

‘On commencement, the Secretary of State will report to Parliament on the work

of the Implementation Group on the work to ensure consumers and businesses are

adequately informed of the changes in the law by this Act, especially with regard

to the key rights at the point of sale.’.

Requirements for statutory regulators

Stella Creasy

Stephen Doughty

NC7


To move the following Clause:—

‘(1)
Within three months of Royal Assent of this Act, the Secretary of State shall set

out in guidance requirements for 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.

(2)
If there is a need under subsection (1)(c), the Secretary of State shall review the

case for the introduction of levies to support that provision.’.

Public Bill Committee: 11 March 2014
121

Consumer Rights Bill, continued

Annual report: consumer rights

Stella Creasy

Stephen Doughty

NC8


To move the following Clause:—

‘(1)
The Secretary of State must prepare and publish an annual report of the effect of

public policy in the area of consumer rights and must lay a copy of the report

before Parliament.

(2)
The Report shall, with particular regard to low income households, include an

assessment of the effect on—

(a)
household bills; and

(b)
affordability.’.

Annual report: public services

Stella Creasy

Stephen Doughty

NC9


To move the following Clause:—

‘(1)
Within three months of Royal Assent of this Act the Secretary of State must

publish a report detailing how—

(a)
better outcomes for consumers of public services; and

(b)
more efficient decision-making processes


will be ensured.

(2)
For the purposes of this Act a public service is any provided to the consumer

directly by—

(a)
a Government department;

(b)
a local or public authority; or

(c)
a trader acting on behalf of these organisations.

(3)
For the purposes of this Act a person shall be a consumer of public services under

a “direct commissioning contract” when they enter any—

(a)
agreement;

(b)
contract;

(c)
consumer notice; or

(d)
proposed contract,


for receiving a service which the person has a direct role in commissioning.

(4)
A report under subsection (1) 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

Act when a direct commissioning contract is in place;

Public Bill Committee: 11 March 2014
122

Consumer Rights Bill, continued

(d)
what formal status any independent advice provided notice issued will

have in relation to local authority decision-making, in particular, 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 under paragraph (a); and

(f)
how a public service provider will report on their formalised approach

under paragraph (a).’.

Order of the House [28 JANUARY 2014]

That the following provisions shall apply to the Consumer Rights Bill:

Committal

1.
The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

2.
Proceedings in the Public Bill Committee shall (so far as not previously

concluded) be brought to a conclusion on Thursday 13th March 2014.

3.
The Public Bill Committee shall have leave to sit twice on the first day on

which it meets.

Consideration and Third Reading

4.
Proceedings on Consideration shall (so far as not previously concluded) be

brought to a conclusion three hours after the commencement of the

proceedings.

5.
Proceedings on Third Reading shall (so far as not previously concluded) be

brought to a conclusion four hours after the commencement of proceedings

on Consideration.

6.
Standing Order No. 83B (Programming committees) shall not apply to

proceedings on Consideration and Third Reading.

Other proceedings

7.
Any other proceedings on the Bill (including any proceedings on

consideration of Lords Amendments or on any further messages from the

Lords) may be programmed.

Order of the Committee [11 February 2014]

That—

(1)
the Committee shall (in addition to its first meeting at 8.55 am on Tuesday 11

February) meet—

(a)
at 2.00 pm on Tuesday 11 February;

(b)
at 11.30 am and 2.00 pm on Thursday 13 February;

(c)
at 8.55 am and 2.00 pm on Tuesday 25 February;

(d)
at 11.30 am and 2.00 pm on Thursday 27 February;

(e)
at 8.55 am and 2.00 pm on Tuesday 4 March;

(f)
at 11.30 am and 2.00 pm on Thursday 6 March;

(g)
at 8.55 am and 2.00 pm on Tuesday 11 March;

(h)
at 11.30 am and 2.00 pm on Thursday 13 March;



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