House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

43

House of Commons

Thursday 27 February 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

24

Clause  24,  page  14,  line  39,  after ‘amount’, insert ‘, to be paid—

(i)
within 30 days of agreeing that a refund is to be paid, and

(ii)
using the same payment method used in the original transfer for

which they are receiving the refund.

(1A)
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

25

Clause  24,  page  15,  line  34,  leave out from ‘(12)’ to end of line 39.

Stella Creasy

Stephen Doughty

26

Clause  24,  page  15,  line  40,  leave out subsection (11).

Public Bill Committee: 27 February 2014
44

Consumer Rights Bill, continued

Stella Creasy

Stephen Doughty

27

Clause  30,  page  19,  line  26,  leave out ‘states’ and insert ‘sets out in full and clearly

understandable detail’.

Stella Creasy

Stephen Doughty

45

Clause  33,  page  21,  line  38,  at end insert—

‘(4A)
For the purposes of this legislation, intermediary services which enable access to

digital content by being a platform for introducing a consumer to a trader shall

also not be considered to have supplied digital content.’.

Stella Creasy

Stephen Doughty

28

Clause  34,  page  22,  line  21,  at end insert—

‘(aa)
any claim made by the trader as to the outcome the digital content will

achieve,’.

Stella Creasy

Stephen Doughty

29

Clause  35,  page  23,  line  34,  at end insert—

‘(5A)
In assessing whether digital content is fit for purpose any public claims made by

the trader as to the purpose of the digital content shall be taken into account.’.

Stella Creasy

Stephen Doughty

30

Clause  36,  page  23,  line  40,  at end insert—

‘(1A)
Where a trader is selling digital content that has restrictions on who can purchase

it, public communications about that digital content, including promotional

material and any promotional activities, shall be required to reflect these

restrictions.’.

Stella Creasy

Stephen Doughty

31

Clause  36,  page  23,  line  40,  at end insert—

Public Bill Committee: 27 February 2014
45

Consumer Rights Bill, continued

‘(1B)
Prior to exchange of the digital content or agreeing the contract, whichever

happens first, the trader will explicitly provide the consumer with relevant details

of their statutory rights under sections 42, 43, 44 and 45 of this Act.’.

Stella Creasy

Stephen Doughty

32

Clause  36,  page  24,  line  9,  at end insert—

‘(4A)
The trader is required to provide full details of the total cost of digital content

prior to sale including details of any additional service fees or charges that could

be incurred by the buyer in purchasing the digital content.

(4B)
The information set out in subsection (4A) should be portrayed prior to sale and

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

Stella Creasy

Stephen Doughty

33

Clause  40,  page  25,  line  31,  at end add—

‘(2A)
If the trader becomes aware of digital content that is faulty it is the responsibility

of the trader to take all reasonable steps to inform the consumer affected so that

he may exercise their statutory rights.’.

Stella Creasy

Stephen Doughty

34

Clause  43,  page  27,  line  3,  leave out ‘a reasonable time’ and insert ‘30 days unless

an alternative timescale is agreed with the consumer prior to the commencement of any

repair activity’.

Stella Creasy

Stephen Doughty

35

Clause  43,  page  27,  line  16,  after ‘conformity’, insert ‘and the financial impact on

the consumer of the completion of any repair that takes longer than 30 days’.

Stella Creasy

Stephen Doughty

36

Clause  45,  page  28,  line  8,  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 format used to purchase the digital content for

which they are receiving the refund.

(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

Public Bill Committee: 27 February 2014
46

Consumer Rights Bill, continued

impact of any loss of income from this delay on them unless the consumer has

decided to waive this right to a refund within this timeframe.’.

Stella Creasy

Stephen Doughty

37

Clause  46,  page  28,  line  22,  at end insert—

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

payment is to be made using the same payment method used to purchase the

digital content for which they are receiving the payment.

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

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

impact of any loss of income from this delay on them unless the consumer has

decided to waive this right to a payment within this timeframe.’.

Stella Creasy

Stephen Doughty

38

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

‘(1A)
In assessing whether the service has been performed with reasonable care and

skill any claim made by the trader as to the outcome the service will achieve must

be taken into consideration.’.

Stella Creasy

Stephen Doughty

46

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

‘(1A)
For the purposes of this Act every contract to supply a service by those traders

who are ring-fenced bodies providing financial services as defined under section

142A (Ring-fenced body) of the Financial Services and Markets Act 2000 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

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

activities by the trader designed to induce the consumer to purchase

further goods or services from the trader,

Public Bill Committee: 27 February 2014
47

Consumer Rights Bill, continued

(c)
for the purposes of this Act 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—

‘(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

49

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

Public Bill Committee: 27 February 2014
48

Consumer Rights Bill, continued

(b)
offer the consumer an alternative contract with a comparable financial

outcome for the consumer of the existing contract.’.

Stella Creasy

Stephen Doughty

50

Clause  51,  page  30,  line  37,  leave out from ‘price’ to end of line 38 and insert ‘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

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

‘(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 section 50(1), the

Secretary of State will—

(a)
under the power set out in section 89 (Supply of customer data) of the

Enterprise and Regulatory Reform Act 2013 enact regulations to require

all regulated persons to provide customers with data regarding their

personal use of a service,

(b)
specify in a report presented to Parliament within three months of Royal

Assent of this Act which traders operating as a business as defined by

section 2 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 paragraph (c),

(c)
having regard to the powers set out in section 89(8) of the Enterprise and

Regulatory Reform Act, require regulators of services provided by

regulated persons to submit a report within three months of Royal Assent

of this Act on guidance to include—

(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 89(7) of the Enterprise and 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,

Public Bill Committee: 27 February 2014
49

Consumer Rights Bill, continued

(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

infringed,

(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 ways to make publicly

available information about how consumers may exercise their

right to access data for the purposes of being able to make

decisions on contracts for services.’.

Stella Creasy

Stephen Doughty

52

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

‘(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

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

‘(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

either—

(a)
the financial services company, or

(b)
financial broker anticipates to make on that premium if there is no claim

on the policy.’.

Stella Creasy

Stephen Doughty

54

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

‘(4)
Where the service provided is for an additional assistance service, a reasonable

price will be one which is judged by reference to 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.

(5)
An “additional assistance” service for the purposes of this Act 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.’.



© Parliamentary copyright	Revised 27 February 2014