Session 2013 - 14
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Other Bills before Parliament


 
 

Public Bill Committee: 25 February 2014                  

30

 

Consumer Rights Bill, continued

 
 

‘(1A)    

For the purposes of this legislation every contract to supply a service by those

 

traders who are ring-fenced bodies providing financial servies as defined under

 

section 142 of the Financial Services Banking Reform Act 2013 shall—

 

(a)    

be subject to a fiduciary duty towards its consumers in the operation of

 

core services to provide these with reasonable care and skill as well as in

 

the management of any individual contract to provide services; and

 

(b)    

be subject to a duty of care towards consumers across the financial

 

services sector.’.

 

Stella Creasy

 

Stephen Doughty

 

47

 

Parliamentary Star    

Clause  49,  page  30,  line  8,  at end insert—

 

‘(1A)    

This requirement shall apply to all activities associated with providing a service

 

including—

 

(a)    

the management of information held by the trader about the consumer

 

gained in the course of this contract,

 

(b)    

the communication with the consumer regarding the contract including

 

activites by the trader designed to induce the consumer to purchase

 

further goods or services from the trader,

 

(c)    

for the purposes of this legislation this shall be taken to include a

 

requirement for traders to prove they have the direct consent of a

 

consumer to share information on consumers gathered for the purposes

 

of providing a service with any third party including, but not limited to,

 

marketing and communication purposes, and

 

(d)    

the trader will be liable for compensation for any distress caused by such

 

activity undertaken involving communications with the consumer via

 

either themselves or a third party without this consent.’.

 


 

Stella Creasy

 

Stephen Doughty

 

39

 

Clause  50,  page  30,  line  18,  at end insert—

 

‘(1A)    

Where a trader is selling a service that has restrictions on who can purchase it,

 

public communications about that service, including promotional material and

 

any promotional activities shall be required to reflect these restrictions.’.

 

Stella Creasy

 

Stephen Doughty

 

40

 

Clause  50,  page  30,  line  18,  at end insert—

 

‘(1B)    

Prior to the provision of the service or agreeing the contract, whichever happens

 

first, the trader will explicitly provide the consumer with relevant details of their

 

statutory rights under sections 51, 52, 55 and 56 of this Act.’.

 

Stella Creasy

 

Stephen Doughty

 

41

 

Clause  50,  page  30,  line  18,  at end insert—


 
 

Public Bill Committee: 25 February 2014                  

31

 

Consumer Rights Bill, continued

 
 

‘(1C)    

The trader is required to provide full details of the total cost of the service prior

 

to sale including any additional service fees or charges that could be incurred by

 

the buyer in purchasing the service.

 

(1D)    

The information set out in subsection (1C) should be portrayed prior to sale and

 

the explicit consent to purchase the service at this price sought prior to sale.’.

 

Stella Creasy

 

Stephen Doughty

 

42

 

Clause  50,  page  30,  line  22,  after ‘trader’, insert ‘with equal prominence and’.

 

Stella Creasy

 

Stephen Doughty

 

43

 

Clause  50,  page  30,  line  31,  at end insert—

 

‘(4A)    

Where the trader seeks to change any of the information mentioned in subsection

 

(3) after a contract has been entered into by a consumer, the trader must—

 

(a)    

ensure that if the consumer does not wish to agree to the changes sought,

 

the consumer is able to terminate the contract without incurring financial

 

detriment; or

 

(b)    

offer the consumer an alternative contract for the same service with a

 

comparable financial outcome for the consumer of the existing contract.’.

 

Stella Creasy

 

Stephen Doughty

 

49

 

Parliamentary Star    

Clause  50,  page  30,  line  31,  at end insert—

 

‘(4A)    

Where the trader seeks to change any of the information set out in subsection (3)

 

after a contract has been entered into by a consumer, the trader must—

 

(a)    

ensure that if the consumer does not wish to agree to the changes sought,

 

the consumer is able to terminate the contract without incurring financial

 

detriment; or

 

(b)    

offer the consumer an alternative contract with a comparable financial

 

outcome for the consumer of the existing contract.’.

 


 

Stella Creasy

 

Stephen Doughty

 

50

 

Parliamentary Star    

Clause  51,  page  30,  line  37,  leave out paragraph (b) and insert—

 

‘(b)    

the contract does not expressly fix a price for all elements of the service

 

supplied and the consumer faces ongoing costs or charges for an element

 

of the service.’.

 

Stella Creasy

 

Stephen Doughty

 

51

 

Parliamentary Star    

Clause  51,  page  31,  line  3,  at end insert—

 

‘(4)    

To enable consumers to assess whether the price they are paying for a service is

 

reasonable, and no more, and with regard to the provisions of Clause 50, section

 

1, the Secretary of State will—


 
 

Public Bill Committee: 25 February 2014                  

32

 

Consumer Rights Bill, continued

 
 

(a)    

under the power set out in section 89 of the Enterprise Regulatory

 

Reform Act 2013 enact regulations to require all regulated persons to

 

provide customers with data regarding their personal use of a service,

 

(b)    

further specify in a report presented to Parliament within three months of

 

this legislation being enacted which traders operating as a business as

 

defined by Clause 2 of this legislation shall be considered regulated

 

persons including any government, or local or public authority and

 

therefore identify a relevant regulatory body to undertake the duties set

 

out in section (c),

 

(c)    

having regard to the powers of the Secretary of State under subsection (8)

 

of Clause 89 of the Enterprise and Regulatory Reform Act that within

 

three months of this legislation being enacted require Regulators of

 

services provided by regulated persons will report to them on guidance to

 

cover the following requirements for this purpose including—

 

(i)    

the provision of such data in a format which enables the

 

consumer to assess whether the price they are paying for a

 

service is reasonable including but not limited to the description

 

set out in section (7) of Clause 89 of the Enterprise Regulatory

 

Reform Act 2013,

 

(ii)    

the provision of guidance that can enable third parties to make a

 

request for this information with the consent of the consumer

 

including measures to limit the total charge that can be applied

 

for any such single request for data on behalf of multiple

 

consumers,

 

(iii)    

requirements for those who hold data on consumers on behalf of

 

any government, local or public authority to seek to use this

 

information to secure social and consumer benefits for its

 

application as directed by the information commissioner,

 

(iv)    

requirements for all regulated persons to recognise that primacy

 

of ownership of any data generated directly in the course of a

 

contract with a consumer at any point in its execution lies with

 

the consumer and as such any decision requiring the

 

transmission of this data in a format where the consumer can be

 

identified to a third party by the trader must secure the direct

 

consent of the consumer,

 

(v)    

requirements for all regulated persons to make available upon

 

request to a regulatory body information pertaining to their

 

management of non personal data collected in the course of

 

interactions with consumers by traders for the purposes of

 

enabling regulatory bodies to assess whether the rights of

 

consumers to a reasonable price for a service have been

 

enfringed,

 

(vi)    

guidance for the trader to clarify their ongoing responsibility for

 

the security and accuracy of data held on consumers whether the

 

consumer continues to maintain a contract with the trader or not,

 

and

 

(vii)    

guidance for all regulated persons on how to make publicly

 

available how consumers may exercise their right to access this

 

data for the purposes of being able to make decisions on

 

contracts for services.’.

 

Stella Creasy

 

Stephen Doughty

 

52

 

Parliamentary Star    

Clause  51,  page  31,  line  3,  at end insert—


 
 

Public Bill Committee: 25 February 2014                  

33

 

Consumer Rights Bill, continued

 
 

‘(4)    

Where the consumer is required to pay for a service via a third party as part of

 

another contract, for the purposes of assessing whether the charges they are

 

required to pay are reasonable they will have a right to the full details of any

 

contract including all charges and costs to which they are contributing.

 

Stella Creasy

 

Stephen Doughty

 

53

 

Parliamentary Star    

Clause  51,  page  31,  line  3,  at end insert—

 

‘(4)    

Where the consumer is being supplied a financial service, the consumer shall be

 

provided with such information as shall enable them to know the risks that were

 

taken into account in calculating the applicable premium and the profit that the

 

financial services company and/or financial broker anticipates to make on that

 

premium if there is no claim on the policy.’.

 

Stella Creasy

 

Stephen Doughty

 

54

 

Parliamentary Star    

Clause  51,  page  31,  line  3,  at end insert—

 

‘(4)    

Where the service provided is for an additional assistance service, a reasonable

 

price will be one which is judged by reference to—

 

(a)    

the guidance set out by the original provider of the service who has

 

approved the provision of such an additional service including specifying

 

a range of costs for its provision which can be considered reasonable,

 

(b)    

an additional assistance service for the purposes of this legislation is to

 

be considered any service assisting a consumer to use the original service

 

that does not alter the original service provider’s intent in operating this

 

service.’.

 


 

Stella Creasy

 

Stephen Doughty

 

55

 

Parliamentary Star    

Clause  52,  page  31,  line  12,  at end insert—

 

‘(3A)    

For the purposes of this Act, where the service provides assistance to the

 

consumer for what can reasonably be considered serious loss of—

 

(a)    

livelihood,

 

(b)    

primary living accommodation, or

 

(c)    

household earnings

 

    

and such a service would be considered their primary redress for such a loss, the

 

impact of any delay in provision of this service on their quality of life can be taken

 

into account in determining what timeframe is considered reasonable.

 

(3B)    

Considerations under subsection (3A) do not affect the right of consumers to seek

 

other remedies for a breach of contract at a later date regarding delay in provision

 

of compensation.’.

 



 
 

Public Bill Committee: 25 February 2014                  

34

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

Stephen Doughty

 

56

 

Parliamentary Star    

Clause  54,  page  31,  line  30,  at end insert—

 

‘( )    

The trader shall provide the consumer with full details of their relevant statutory

 

rights under a services contract before the point at which the consumer seeks to

 

challenge whether these rights have been met. This shall be done within an

 

appropriate, retainable format and within a reasonable time of contact with the

 

trader for this purpose to enable the consumer to exercise their rights.’.

 

Stella Creasy

 

Stephen Doughty

 

57

 

Parliamentary Star    

Clause  54,  page  31,  line  34,  at end insert—

 

‘(c)    

where the conduct of the service leader can be reasonably considered to

 

lead to a risk to the personal safety of the consumer, the consumer has a

 

right to—

 

(i)    

a full refund of the cost of the contract, and

 

(ii)    

any additional fees associated with the service.

 

    

Any action taken under this subsection will not prevent the consumer from

 

seeking other remedies or further compensation for the consequences of this

 

installation.’.

 

Stella Creasy

 

Stephen Doughty

 

58

 

Parliamentary Star    

Clause  54,  page  32,  line  6,  at end insert—

 

‘( )    

In seeking to enquire about the terms of their contract, possible breaches of their

 

statutory rights or enforce terms about service, a trader cannot charge the

 

consumer for seeking to communicate with them.’.

 


 

Stella Creasy

 

Stephen Doughty

 

59

 

Parliamentary Star    

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

 

Parliamentary Star    

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

 

‘( )    

When considering what is an “appropriate amount” for the purpose of this

 

section, consideration shall be given to reasonable steps that will return the


 
 

Public Bill Committee: 25 February 2014                  

35

 

Consumer Rights Bill, continued

 
 

consumer to the position they would now be in, if the trader had not breached the

 

contract in the first place.’.

 

Stella Creasy

 

Stephen Doughty

 

61

 

Parliamentary Star    

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

 

    

‘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. 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

 

Parliamentary Star    

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

 

‘(c)    

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

 


 

Jenny Willott

 

44

 

Parliamentary Star    

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

 

Parliamentary Star    

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

 

‘( )    

For the purposes of this Act, consumer notices are considered 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: 25 February 2014                  

36

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

Stephen Doughty

 

70

 

Parliamentary Star    

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

 

‘( )    

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

 

Stephen Doughty

 

66

 

Parliamentary Star    

Schedule  2,  page  51,  line  11,  at end insert—

 

    

‘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

 

Parliamentary Star    

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

 

‘( )    

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

 

Parliamentary Star    

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

 

‘( )    

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

 

Parliamentary Star    

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

 

‘( )    

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, where 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.’.


 
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Revised 25 February 2014