Session 2013 - 14
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23

 

House of Commons

 
 

Thursday 6 March 2014

 

Public Bill Committee Proceedings

 

Consumer Rights Bill


 

[Eleventh and Twelfth SITTINGS]


 

Clause 54 Agreed to.

 


 

Stella Creasy

 

Stephen Doughty

 

Withdrawn  59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.’.

 

Clause Agreed to.

 


 

Stella Creasy

 

Stephen Doughty

 

Withdrawn  62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.’.

 

Stella Creasy

 

Stephen Doughty

 

Withdrawn  61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


 
 

Public Bill Committee Proceedings: 6 March 2014            

24

 

Consumer Rights Bill, continued

 
 

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

 

Not called  60

 

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

 

‘(c)    

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

 

Clause Agreed to.

 

Clauses 57 to 60 Agreed to.

 


 

Jenny Willott

 

Agreed to  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.

 

Schedule, as amended, Agreed to.

 

Clause 61 Agreed to.

 


 

Stella Creasy

 

Stephen Doughty

 

Withdrawn  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.’.

 

Clause Agreed to.

 



 
 

Public Bill Committee Proceedings: 6 March 2014            

25

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

Stephen Doughty

 

Withdrawn  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.’.

 

Clause Agreed to.

 


 

Stella Creasy

 

Not called  99

 

Schedule  2,  page  50,  line  11,  after ‘realisation’, insert ‘or management or

 

delivery’.

 

Stella Creasy

 

Stephen Doughty

 

Not called  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

 

Negatived on division  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

 

Not called  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

 

Not called  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


 
 

Public Bill Committee Proceedings: 6 March 2014            

26

 

Consumer Rights Bill, continued

 
 

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.

 

    

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

 

Negatived on division  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

 

Not called  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

 

Not called  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.’.

 

Schedule Agreed to.

 


 

Stella Creasy

 

Stephen Doughty

 

Withdrawn  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

 

Withdrawn  71

 

Clause  64,  page  37,  line  30,  after ‘term’, insert ‘and it would form part of their

 

purchasing decision.’.


 
 

Public Bill Committee Proceedings: 6 March 2014            

27

 

Consumer Rights Bill, continued

 
 

Stella Creasy

 

Stephen Doughty

 

Withdrawn  73

 

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

 

cultural and linguistic factors.’.

 

Clause Agreed to.

 

Clauses 65 to 67 Agreed to.

 


 

Stella Creasy

 

Stephen Doughty

 

Withdrawn  74

 

Clause  68,  page  38,  line  41,  after ‘trader’, insert ‘, which for these purposes

 

includes a provider of financial services,’.

 

Stella Creasy

 

Stephen Doughty

 

Withdrawn  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

 

Withdrawn  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

 

Not called  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 Proceedings: 6 March 2014            

28

 

Consumer Rights Bill, continued

 
 

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

 

Government department or local or public authority.’.

 

Clause Agreed to.

 

Clauses 69 and 70 Agreed to.

 


 

Stella Creasy

 

Not selected  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

 

Withdrawn  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.’.

 

Schedule Agreed to.

 

Clauses 71 to 75 Agreed to.

 

Schedule 4 Agreed to.

 

Clause 76 Agreed to.

 

[Adjourned until Tuesday 11 March at 8.55 am


 
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