Consumer Rights Bill (HL Bill 52)

(a) omit “IV or”, and

(b) for “those Parts” substitute “that Part”.

Sunday Trading Act 1994 (c. 20)1994 (c. 20)

58 (1) Part 1 of Schedule 2 to the Sunday Trading Act 1994 (general enforcement
5provisions) is amended as follows.

(2) Omit paragraphs 3 and 4.

(3) Before paragraph 5 insert—

“Investigatory powers

4A For the investigatory powers available to a local authority and the
10inspectors appointed by it under paragraph 2 for the purposes of
the duty in paragraph 1, see Schedule 5 to the Consumer Rights
Act 2014.”

Trade Marks Act 1994 (c. 26)1994 (c. 26)

59 (1) Section 93 of the Trade Marks Act 1994 (enforcement function of local
15weights and measures authority) is amended as follows.

(2) Omit subsection (2).

(3) In subsection (3) omit the words from “For that purpose” to the end of the
subsection.

(4) After that subsection insert—

“(3A) 20For the investigatory powers available to a local weights and
measures authority or the Department of Enterprise, Trade and
Investment in Northern Ireland for the purposes of the duties in this
section, see Schedule 5 to the Consumer Rights Act 2014.”

Olympic Symbol etc (Protection) Act 1995

60 (1) 25Section 8A of the Olympic Symbol etc (Protection) Act 1995 is amended as
follows.

(2) Omit subsection (2).

(3) In subsection (3) omit paragraph (b) and the “and” immediately preceding
that paragraph.

(4) 30After that subsection insert—

“(3A) For the investigatory powers available to a local weights and
measures authority or the Department of Enterprise, Trade and
Investment in Northern Ireland for the purposes of the duties in this
section, see Schedule 5 to the Consumer Rights Act 2014.”

35Criminal Justice and Police Act 2001

61 The Criminal Justice and Police Act 2001 is amended as follows.

62 In section 57(1) (retention of seized items)—

(a) omit paragraphs (d), (g) and (pa), and

(b) after paragraph (r) insert—

“(s) paragraphs 28(7) and 29(8) of Schedule 5 to the
Consumer Rights Act 2014”.

63 (1) 5Section 65 (meaning of legal privilege) is amended as follows.

(2) Omit subsections (6) and (8A).

(3) Before subsection (9) insert—

“(8B) An item which is, or is comprised in, property which has been seized
in exercise or purported exercise of the power of seizure conferred by
10paragraph 27(1)(b) or 29(1) of Schedule 5 to the Consumer Rights Act
2014 shall be taken for the purposes of this Part to be an item subject
to legal privilege if, and only if, the seizure of that item was in
contravention of paragraph 27(6) or (as the case may be) 29(6) of that
Schedule (privileged documents).”

(4) 15In subsection (9)—

(a) omit paragraph (c),

(b) at the end of paragraph (d) insert “or”, and

(c) omit paragraph (f) and the “or” immediately preceding that
paragraph.

64 20In section 66(4) (construction of references to a search)—

(a) omit paragraphs (a), (c), (d), (e), (f), (g), (ma), (q), (r) and (s),

(b) in paragraph (h) for “29” substitute “29(4)”,

(c) in paragraph (o) for “22” substitute “22(4)”, and

(d) after paragraph (p) insert—

“(t) 25Part 4 of Schedule 5 to the Consumer Rights Act
2014”.

65 (1) Part 1 of Schedule 1 (powers to which section 50 applies) is amended as
follows.

(2) Omit—

(a) 30paragraph 9,

(b) paragraph 16,

(c) paragraph 18,

(d) paragraph 19,

(e) paragraph 24,

(f) 35paragraph 36,

(g) paragraph 73BA,

(h) the first paragraph 73G,

(i) the second paragraph 73J,

(j) the second paragraph 73K,

(k) 40paragraph 73N, and

(l) paragraph 73O.

(3) In paragraph 45 for “29(4), (5) and (6)” substitute “29(4)”.

(4) In the second paragraph 73G for “22(4) to (6)” substitute “22(4)”.

(5) After paragraph 73M insert—

“Consumer Rights Act 2014

73P Each of the powers of seizure conferred by paragraphs 27(1)(b),
28(1) and 29(1) of Schedule 5 to the Consumer Rights Act 2014.”

66 (1) 5Part 1 of Schedule 2 (application of enactments) is amended as follows.

(2) Omit paragraphs 1, 4B, 4C, 5, 7, 9B and 9C.

(3) In paragraph 3 for “29” in each place substitute “29(4)”.

(4) In paragraph 4A—

(a) for “23” substitute “22(4)”, and

(b) 10for “22” substitute “22(4)”.

(5) After paragraph 4A insert—

“4D Paragraph 39 of Schedule 5 to the Consumer Rights Act 2014
(notice of testing of goods) shall apply in relation to items seized
under section 50 of this Act in reliance on the power of seizure
15conferred by paragraph 28(1) of that Schedule as it applies in
relation to goods seized under that paragraph.

Access to seized items

4E Subject to section 61 of this Act, paragraph 38 of Schedule 5 to the
Consumer Rights Act 2014 (access to seized goods and
20documents) shall apply in relation to items seized under section 50
of this Act in reliance on the power of seizure conferred by
paragraph 28(1) or 29(1) of that Schedule as it applies in relation to
things seized under Part 4 of that Schedule.”

(6) In paragraph 8 for “29” in each place substitute “29(4)”.

(7) 25In 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.”

(8) 30After paragraph 9A insert—

“9D Paragraph 41 of Schedule 5 to the Consumer Rights Act 2014
(compensation for seizure and detention) shall apply in relation to
the seizure of items under section 50 of this Act in reliance on the
power of seizure conferred by paragraph 28(1) or 29(1) of that
35Schedule, and the retention of those items, as it applies in relation
to the seizure and detention of goods under Part 4 of that
Schedule.”

Enterprise Act 2002

67 The Enterprise Act 2002 is amended as follows.

68 40Omit section 224 (power of CMA to require the provision of information).

69 Omit section 225 (power of other enforcer to require the provision of
information).

70 Omit section 226 (procedure for notices requiring information).

71 Omit section 227 (enforcement of notices).

72 5Omit section 227A (power to enter premises without warrant).

73 Omit section 227B (powers exercisable on the premises).

74 Omit section 227C (power to enter premises with warrant).

75 Omit section 227D (ancillary provisions about powers of entry).

76 Omit section 227E (obstructing, or failing to co-operate with, powers of
10entry).

77 Omit section 227F (retention of documents and goods).

78 Before section 228 (but after the italic heading “Miscellaneous”) insert—

“223A Investigatory powers

For the investigatory powers available to enforcers for the purposes
15of enforcers’ functions under this Part, see Schedule 5 to the
Consumer Rights Act 2014.”

79 In section 228 (evidence) omit subsection (4).

80 In section 236 (application of Part 8 to Crown) omit subsection (2).

81 In Schedule 14 (specified functions for the purposes of Part 9 restrictions on
20disclosure), at the end insert—

• “Paragraph 13(2), (3) or (7) of Schedule 5 to the Consumer
  Rights Act 2014.”

Fireworks Act 2003 (c. 22)2003 (c. 22)

82 (1) Section 12 of the Fireworks Act 2003 (enforcement) is amended as follows.

(2) 25In 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) 30For the investigatory powers available to a person 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.”

Christmas Day (Trading) Act 2004 (c. 26)2004 (c. 26)

83 (1) 35Section 3 of the Christmas Day (Trading) Act 2004 (enforcement) is amended
as follows.

(2) Omit subsection (3).

(3) Before subsection (4) insert—

“(3A) For the powers available to a local authority and the inspectors
appointed by it under subsection (3) for the purposes of the duty in
subsection (1), see Schedule 5 to the Consumer Rights Act 2014.”

5Financial Services Act 2012 (c. 21)2012 (c. 21)

84 (1) Section 107 of the Financial Services Act 2012 (power to make further
provision about regulation of consumer credit) is amended as follows.

(2) In subsection (2) omit paragraph (g).

(3) In subsection (4) for “(2)(g) to (i)” substitute “(2)(h) and (i)”.

10Consequential repeals and revocations

85 In consequence of the amendments made by this Schedule, the following are
repealed or revoked—

(a) section 16(2)(b) of the Price Commission Act 1977;

(b) article 2(13) of the Deregulation (Weights and Measures) Order 1999
15(SI 1999/503SI 1999/503);

(c) paragraph 9(8)(b) and (9)(a) of Schedule 25 to the Enterprise Act
2002;

(d) paragraphs 50 and 62 of Schedule 27 to the Civil Partnerships Act
2004;

(e) 20regulation 47(2) to (5) of the General Product Safety Regulations 2005
(SI 2005/1803SI 2005/1803);

(f) paragraphs (10) and (24) to (27) of Schedule 1 to the Weights and
Measures (Packaged Goods) Regulations 2006 (SI 2006/659SI 2006/659);

(g) regulations 15 to 18 and 24 to 28 of the Enterprise Act 2002
25(Amendment) Regulations 2006 (SI 2006/3363SI 2006/3363);

(h) section 51(2) of the Consumer Credit Act 2006;

(i) paragraph 41 of Schedule 21 to the Legal Services Act 2007;

(j) sections 57 and 58(1), (3) and (4) of the Consumers, Estate Agents and
Redress Act 2007;

(k) 30paragraphs 63 to 65 of Schedule 2 to the Consumer Protection from
Unfair Trading Regulations 2008 (SI 2008/1277SI 2008/1277);

(l) paragraph 2 of Schedule 6 to the Timeshare, Holiday Products,
Resale and Exchange Contracts Regulations 2010 (SI 2010/2960SI 2010/2960);

(m) regulation 2 of the Timeshare (Amendment) Regulations 2011 (SI
352011/1065);

(n) paragraphs 17 to 20 of Schedule 1 to the Weights and Measures
(Packaged Goods) Regulations (Northern Ireland) 2011 (SR 2011/
331);

(o) paragraph 82(a) of Schedule 9 to the Crime and Courts Act 2013.

Section 79

SCHEDULE 7 Enterprise Act 2002: enhanced consumer measures and other enforcement

1 Part 8 of the Enterprise Act 2002 (enforcement of certain consumer
legislation) is amended as follows.

2 5In section 210 (consumers), omit subsection (5).

3 (1) Section 211 (domestic infringements) is amended as follows.

(2) In subsection (1)(c), omit “in the United Kingdom”.

(3) After subsection (1) insert—

“(1A) But an act or omission which satisfies the conditions in subsection (1)
10is a domestic infringement only if at least one of the following is
satisfied—

(a) the person supplying (or seeking to supply) goods or services
has a place of business in the United Kingdom, or

(b) the goods or services are supplied (or sought to be supplied)
15to or for a person in the United Kingdom (see section 232).”

4 In section 213(5A) (CPC enforcers), for paragraph (i) substitute—

“(i) an enforcement authority within the meaning of section
120(15) of the Communications Act 2003 (regulation of
premium rate services);”.

5 (1) 20Section 214 (consultation) is amended as follows.

(2) In subsection (4)(a), after “14 days” insert “or, where subsection (4A) applies,
28 days”.

(3) After subsection (4) insert—

“(4A) This subsection applies where the person against whom the
25enforcement order would be made is a member of, or is represented
by, a representative body, and that body operates a consumer code
which has been approved by—

(a) an enforcer, other than a designated enforcer which is not a
public body,

(b) 30a body which represents an enforcer mentioned in paragraph
(a),

(c) a group of enforcers mentioned in paragraph (a), or

(d) a community interest company whose objects include the
approval of consumer codes.

(4B) 35In subsection (4A)—

• “consumer code” means a code of practice or other document
  (however described) intended, with a view to safeguarding
  or promoting the interests of consumers, to regulate by any
  means the conduct of persons engaged in the supply of goods
  40or services to consumers (or the conduct of their employees
  or representatives), and

• “representative body” means an organisation established to
  represent the interests of two or more businesses in a

  Consumer Rights BillPage 106

  particular sector or area, and for this purpose “business” has
  the meaning it bears in section 210.”

6 In section 217 (enforcement orders), after subsection (10) insert—

“(10A) An enforcement order may require a person against whom the order
5is made to take enhanced consumer measures (defined in section
219A) within a period specified by the court.

(10B) An undertaking under subsection (9) may include a further
undertaking by the person to take enhanced consumer measures
within a period specified in the undertaking.

(10C) 10Subsections (10A) and (10B) are subject to section 219C in a case
where the application for the enforcement order was made by a
designated enforcer which is not a public body.

(10D) Where a person is required by an enforcement order or an
undertaking under this section to take enhanced consumer
15measures, the order or undertaking may include requirements as to
the provision of information or documents to the court by the person
in order that the court may determine if the person is taking those
measures.”

7 In section 219 (undertakings), after subsection (5) insert—

“(5ZA) 20An undertaking under this section may include a further
undertaking by the person—

(a) to take enhanced consumer measures (defined in section
219A) within a period specified in the undertaking, and

(b) where such measures are included, to provide information or
25documents to the enforcer in order that the enforcer may
determine if the person is taking those measures.

(5ZB) Subsection (5ZA) is subject to section 219C in a case where the
enforcer is a designated enforcer which is not a public body.”

8 After section 219 insert—

“219A 30 Definition of enhanced consumer measures

(1) In this Part, enhanced consumer measures are measures (not
excluded by subsection (5)) falling within—

(a) the redress category described in subsection (2),

(b) the compliance category described in subsection (3), or

(c) 35the choice category described in subsection (4).

(2) The measures in the redress category are—

(a) measures offering compensation or other redress to
consumers who have suffered loss as a result of the conduct
which has given rise to the enforcement order or
40undertaking,

(b) where the conduct referred to in paragraph (a) relates to a
contract, measures offering such consumers the option to
terminate (but not vary) that contract,

(c) where such consumers cannot be identified, or cannot be
45identified without disproportionate cost to the subject of the

enforcement order or undertaking, measures intended to be
in the collective interests of consumers.

(3) The measures in the compliance category are measures intended to
prevent or reduce the risk of the occurrence or repetition of the
5conduct to which the enforcement order or undertaking relates
(including measures with that purpose which may have the effect of
improving compliance with consumer law more generally).

(4) The measures in the choice category are measures intended to enable
consumers to choose more effectively between persons supplying or
10seeking to supply goods or services.

(5) The following are not enhanced consumer measures—

(a) a publication requirement included in an enforcement order
as described in section 217(8),

(b) a publication requirement included in an undertaking
15accepted by the court as described in section 217(10), or

(c) a publication requirement included in an undertaking
accepted by a CPC enforcer as described in section
219(5A)(a).

219B Inclusion of enhanced consumer measures etc.

(1) 20An enforcement order or undertaking may include only such
enhanced consumer measures as the court or enforcer (as the case
may be) considers to be just and reasonable.

(2) For the purposes of subsection (1) the court or enforcer must in
particular consider whether any proposed enhanced consumer
25measures are proportionate, taking into account—

(a) the likely benefit of the measures to consumers,

(b) the costs likely to be incurred by the subject of the
enforcement order or undertaking, and

(c) the likely cost to consumers of obtaining the benefit of the
30measures.

(3) The costs referred to in subsection (2)(b) are—

(a) the cost of the measures, and

(b) the reasonable administrative costs associated with taking
the measures.

(4) 35An enforcement order or undertaking may include enhanced
consumer measures in the redress category—

(a) only in a loss case, and

(b) only if the court or enforcer (as the case may be) is satisfied
that the cost of such measures to the subject of the
40enforcement order or undertaking is unlikely to be more than
the sum of the losses suffered by consumers as a result of the
conduct which has given rise to the enforcement order or
undertaking.

(5) The cost referred to in subsection (4)(b) does not include the
45administrative costs associated with taking the measures.

(6) Subsection (7) applies if an enforcement order or undertaking
includes enhanced consumer measures offering compensation and a

settlement agreement is entered into in connection with the payment
of compensation.

(7) A waiver of a person’s rights in the settlement agreement is not valid
if it is a waiver of the right to bring civil proceedings in respect of
5conduct other than the conduct which has given rise to the
enforcement order or undertaking.

(8) The following definitions apply for the purposes of subsection (4)(a).

(9) In the case of an enforcement order or undertaking under section
217, “a loss case” means a case in which—

(a) 10subsection (1) of that section applies (a finding that a person
has engaged in conduct which constitutes an infringement),
and

(b) consumers have suffered loss as a result of that conduct.

(10) In the case of an undertaking under section 219, “a loss case” means
15a case in which—

(a) subsection (3)(a) or (b) of that section applies (a belief that a
person has engaged or is engaging in conduct which
constitutes an infringement), and

(b) consumers have suffered loss as a result of that conduct.

219C 20Availability of enhanced consumer measures to private enforcers

(1) An enforcement order made on the application of a designated
enforcer which is not a public body may require a person to take
enhanced consumer measures only if the following conditions are
satisfied.

(2) 25An undertaking given under section 217(9) following an application
for an enforcement order made by a designated enforcer which is not
a public body, or an undertaking given to such an enforcer under
section 219, may include a further undertaking by a person to take
enhanced consumer measures only if the following conditions are
30satisfied.

(3) The first condition is that the enforcer is specified for the purposes of
this section by order made by the Secretary of State.

(4) The second condition is that the enhanced consumer measures do
not directly benefit the enforcer or an associated undertaking.

(5) 35Enhanced consumer measures which directly benefit an enforcer or
an associated undertaking include, in particular, measures which—

(a) require a person to pay money to the enforcer or associated
undertaking,

(b) require a person to participate in a scheme which is designed
40to recommend persons supplying or seeking to supply goods
or services to consumers and which is administered by the
the enforcer or associated undertaking, or

(c) would give the enforcer or associated undertaking a
commercial advantage over any of its competitors.

(6) 45The Secretary of State may make an order under subsection (3)
specifying an enforcer only if the Secretary of State is satisfied that to
do so is likely to—

(a) improve the availability to consumers of redress for
infringements to which the enforcer’s designation relates,

(b) improve the availability to consumers of information which
enables them to choose more effectively between persons
5supplying or seeking to supply goods or services, or

(c) improve compliance with consumer law.

(7) The Secretary of State may make an order under subsection (3)
specifying an enforcer only if the functions of the enforcer under this
Part have been specified under section 24 of the Legislative and
10Regulatory Reform Act 2006 (functions to which principles under
section 21 and code of practice under section 22 apply), to the extent
that they are capable of being so specified.

(8) The power to make an order under subsection (3)—

(a) is exercisable by statutory instrument subject to annulment in
15pursuance of a resolution of either House of Parliament;

(b) includes power to make incidental, supplementary,
consequential, transitional, transitory or saving provision.

(9) Subsection (10) applies if—

(a) an enforcer exercises a function in relation to a person by
20virtue of subsection (1) or (2),

(b) that function is a relevant function for the purposes of Part 2
(co-ordination of regulatory enforcement) of the Regulatory
Enforcement and Sanctions Act 2008, and

(c) a primary authority (within the meaning of that Part) has
25given advice or guidance under section 27(1) of that Act—

(i) to that person in relation to that function, or

(ii) to other local authorities (within the meaning of that
Part) with that function as to how they should
exercise it in relation to that person.

(10) 30The enforcer must, in exercising the function in relation to that
person, act consistently with that advice or guidance.

(11) In this section “associated undertaking”, in relation to a designated
enforcer, means—

(a) a parent undertaking or subsidiary undertaking of the
35enforcer, or

(b) a subsidiary undertaking of a parent undertaking of the
enforcer,

and for this purpose “parent undertaking” and “subsidiary
undertaking” have the meanings given by section 1162 of the
40Companies Act 2006.”

9 (1) Section 220 (further proceedings) is amended as follows.

(2) After subsection (1) insert—

“(1A) This section does not apply in the case of a failure to comply with an
order or undertaking which consists only of a failure to provide
45information or documents required by the order or undertaking as
described in section 217(10D).”