Consumer Rights Bill (HL Bill 52)
PART 2 continued
Contents page 1-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-99 100-109 110-119 120-129 130-132 Last page
Consumer Rights BillPage 40
74 Contracts applying law of non-EEA State
(1) If—
(a)
the law of a country or territory other than an EEA State is chosen by
the parties to be applicable to a consumer contract, but
(b) 5the consumer contract has a close connection with the United Kingdom,
this Part applies despite that choice.
(2)
For cases where the law applicable has not been chosen or the law of an EEA
State is chosen, see Regulation (EC) No. 593/2008 of the European Parliament
and of the Council of 17 June 2008 on the law applicable to contractual
10obligations.
75 Changes to other legislation
Schedule 4 (amendments consequential on this Part) has effect.
76 Interpretation of Part 2
(1) In this Part—
-
15“consumer contract” has the meaning given by section 61(3);
-
“consumer notice” has the meaning given by section 61(7);
-
“transparent” is to be construed in accordance with sections 64(3) and
68(2).
(2) The following have the same meanings in this Part as they have in Part 1—
-
20“trader” (see section 2(2));
-
“consumer” (see section 2(3));
-
“goods” (see section 2(8));
-
“digital content” (see section 2(9)).
(3)
Section 2(4) (trader who claims an individual is not a consumer must prove it)
25applies in relation to this Part as it applies in relation to Part 1.
Part 3 Miscellaneous and General
CHAPTER 1 Enforcement etc.
77 Investigatory powers etc
(1) 30Schedule 5 (investigatory powers etc) has effect.
(2) Schedule 6 (investigatory powers: consequential amendments) has effect.
78 Amendment of weights and measures legislation regarding unwrapped bread
(1)
In the Weights and Measures (Packaged Goods) Regulations 2006 (S.I. 2006/
659), Schedule 5 (application to bread) is amended in accordance with
35subsections (2) and (3).
Consumer Rights BillPage 41
(2) For paragraph 9 substitute—
“9
Regulation 9(1)(b)(ii) (duty to keep records) does not apply to bread
which is sold unwrapped or in open packs.”
(3) After paragraph 13 insert—
5“Transitional provision
14
(1)
Regulation 9(1)(b)(ii) (duty to keep records) does not apply to a
packer who holds a notice of exemption which is in force.
(2)
A “notice of exemption” means a notice issued under paragraph 9 as
it stood before section 78 of the Consumer Rights Act 2014 came into
10force.”
(4)
The use of this Act to make amendments to the Weights and Measures
(Packaged Goods) Regulations 2006 has no effect on the availability of any
power in the Weights and Measures Act 1985 to amend or revoke those
Regulations, including the provision substituted by subsection (2) and that
15inserted by subsection (3).
(5)
In the Weights and Measures (Packaged Goods) Regulations (Northern
Ireland) 2011 (SR 2011/331SR 2011/331), Schedule 5 (application to bread) is amended in
accordance with subsections (6) and (7).
(6) For paragraph 9 substitute—
“9
20Regulation 9(1)(b)(ii) (duty to keep records) does not apply to bread
which is sold unwrapped or in open packets.”
(7) After paragraph 13 insert—
“Transitional provision
14
(1)
Regulation 9(1)(b)(ii) (duty to keep records) does not apply to a
25packer who holds a notice of exemption which is in force.
(2)
A “notice of exemption” means a notice issued under paragraph 9 as
it stood before section 78 of the Consumer Rights Act 2014 came into
force.”
(8)
The use of this Act to make amendments to the Weights and Measures
30(Packaged Goods) Regulations (Northern Ireland) 2011 has no effect on the
availability of any power in the Weights and Measures (Northern Ireland)
Order 1981 (SI 1981/231 (NI 10)SI 1981/231 (NI 10)) to amend or revoke those Regulations,
including the provision substituted by subsection (6) and that inserted by
subsection (7).
79 35Enterprise Act 2002: enhanced consumer measures and other enforcement
(1)
Schedule 7 contains amendments of Part 8 of the Enterprise Act 2002
(enforcement of certain consumer legislation).
(2)
The amendments have effect only in relation to conduct which occurs, or which
is likely to occur, after the commencement of this section.
Consumer Rights BillPage 42
CHAPTER 2 Competition
80 Private actions in competition law
Schedule 8 (private actions in competition law) has effect.
CHAPTER 3 Duty of letting agents to publicise fees
81 5Duty of letting agents to publicise fees
(1)
A letting agent must, in accordance with this section, publicise details of the
agent’s relevant fees.
(2) The agent must display a list of the fees—
(a)
at each of the agent’s premises at which the agent deals face-to-face
10with persons using or proposing to use services to which the fees relate,
and
(b)
at a place in each of those premises at which the list is likely to be seen
by such persons.
(3)
The agent must publish a list of the fees on the agent’s website (if it has a
15website).
(4)
A list of fees displayed or published in accordance with subsection (2) or (3)
must include—
(a)
a description of each fee that is sufficient to enable a person who is
liable to pay it to understand the service or cost that is covered by the
20fee or the purpose for which it is imposed (as the case may be),
(b)
in the case of a fee which tenants are liable to pay, an indication of
whether the fee relates to each dwelling-house or each tenant under a
tenancy of the dwelling-house, and
(c)
the amount of each fee inclusive of any applicable tax or, where the
25amount of a fee cannot reasonably be determined in advance, a
description of how that fee is calculated.
(5) The appropriate national authority may by regulations specify—
(a)
other ways in which a letting agent must publicise details of the
relevant fees charged by the agent;
(b) 30the details that must be given of fees publicised in that way.
82 Letting agents to which the duty applies
(1)
In this Chapter “letting agent” means a person who engages in letting agency
work (whether or not that person engages in other work).
(2)
A person is not a letting agent for the purposes of this Chapter if the person
35engages in letting agency work in the course of that person’s employment
under a contract of employment.
(3) A person is not a letting agent for the purposes of this Chapter if—
Consumer Rights BillPage 43
(a)
the person is of a description specified in regulations made by the
appropriate national authority;
(b)
the person engages in work of a description specified in regulations
made by the appropriate national authority.
83 5Fees to which the duty applies
(1)
In this Chapter “relevant fees”, in relation to a letting agent, means the fees,
charges or penalties (however expressed) payable to the agent by a landlord or
tenant—
(a) in respect of letting agency work carried on by the agent,
(b) 10in respect of property management work carried on by the agent, or
(c) otherwise in connection with—
(i) an assured tenancy of a dwelling-house, or
(ii)
a dwelling-house that is, has been or is proposed to be let under
an assured tenancy.
(2) 15Subsection (1) does not apply to—
(a) the rent payable to a landlord under a tenancy,
(b)
any fees, charges or penalties which the letting agent receives from a
landlord under a tenancy on behalf of another person,
(c)
a tenancy deposit within the meaning of section 212(8) of the Housing
20Act 2004, or
(d)
any fees, charges or penalties of a description specified in regulations
made by the appropriate national authority.
84 Letting agency work and property management work
(1)
In this Chapter “letting agency work” means things done by a person in the
25course of a business in response to instructions received from—
(a)
a person (“a prospective landlord”) seeking to find another person
wishing to rent a dwelling-house under an assured tenancy and,
having found such a person, to grant such a tenancy, or
(b)
a person (“a prospective tenant”) seeking to find a dwelling-house to
30rent under an assured tenancy and, having found such a dwelling-
house, to obtain such a tenancy of it.
(2)
But “letting agency work” does not include any of the following things when
done by a person who does nothing else within subsection (1)—
(a) publishing advertisements or disseminating information;
(b)
35providing a means by which a prospective landlord or a prospective
tenant can, in response to an advertisement or dissemination of
information, make direct contact with a prospective tenant or a
prospective landlord;
(c)
providing a means by which a prospective landlord and a prospective
40tenant can communicate directly with each other.
(3) “Letting agency work” also does not include things done by a local authority.
(4)
In this Chapter “property management work”, in relation to a letting agent,
means things done by the agent in the course of a business in response to
instructions received from another person where—
Consumer Rights BillPage 44
(a)
that person wishes the agent to arrange services, repairs, maintenance,
improvements or insurance in respect of, or to deal with any other
aspect of the management of, premises on the person’s behalf, and
(b) the premises consist of a dwelling-house let under an assured tenancy.
85 5Enforcement of the duty
(1)
It is the duty of every local weights and measures authority in England and
Wales to enforce the provisions of this Chapter in its area.
(2)
If a letting agent breaches the duty in section 81(3) (duty to publish list of fees
on agent’s website), that breach is taken to have occurred in each area of a local
10weights and measures authority in England and Wales in which a dwelling-
house to which the fees relate is located.
(3)
Where a local weights and measures authority in England and Wales is
satisfied on the balance of probabilities that a letting agent has breached a duty
imposed by or under section 81, the authority may impose a financial penalty
15on the agent in respect of that breach.
(4)
A local weights and measures authority in England and Wales may impose a
penalty under this section in respect of a breach which occurs in England and
Wales but outside that authority’s area (as well as in respect of a breach which
occurs within that area).
(5)
20But a local weight and measures authority in England and Wales may impose
a penalty in respect of a breach which occurs outside its area and in the area of
a local weights and measures authority in Wales only if it has obtained the
consent of that authority.
(6)
Only one penalty under this section may be imposed on the same letting agent
25in respect of the same breach.
(7) The amount of a financial penalty imposed under this section—
(a) may be such as the authority imposing it determines, but
(b) must not exceed £5,000.
(8) Schedule 9 (procedure for and appeals against financial penalties) has effect.
(9)
30A local weights and measures authority in England must have regard to any
guidance issued by the Secretary of State about—
(a)
compliance by letting agents with duties imposed by or under section
81;
(b) the exercise of its functions under this section or Schedule 9.
(10)
35A local weights and measures authority in Wales must have regard to any
guidance issued by the Welsh Ministers about—
(a)
compliance by letting agents with duties imposed by or under section
81;
(b) the exercise of its functions under this section or Schedule 9.
(11) 40The Secretary of State may by regulations made by statutory instrument—
(a)
amend any of the provisions of this section or Schedule 9 in their
application in relation to local weights and measures authorities in
England;
(b)
make consequential amendments to Schedule 5 in its application in
45relation to such authorities.
Consumer Rights BillPage 45
(12) The Welsh Ministers may by regulations made by statutory instrument—
(a)
amend any of the provisions of this section or Schedule 9 in their
application in relation to local weights and measures authorities in
Wales;
(b)
5make consequential amendments to Schedule 5 in its application in
relation to such authorities.
86 Supplementary provisions
(1) In this Chapter—
-
“the appropriate national authority” means—
(a)10in relation to England, the Secretary of State, and
(b)in relation to Wales, the Welsh Ministers;
-
“assured tenancy” means a tenancy which is an assured tenancy for the
purposes of the Housing Act 1988 except where—(a)the landlord is—
(i)15a private registered provider of social housing,
(ii)a registered social landlord, or
(iii)a fully mutual housing association, or
(b)the tenancy is a long lease;
-
“dwelling-house” may be a house or part of a house;
-
20“fully mutual housing association” has the same meaning as in Part 1 of
the Housing Associations Act 1985 (see section 1(1) and (2) of that Act); -
“landlord” includes a person who proposes to be a landlord under a
tenancy and a person who has ceased to be a landlord under a tenancy
because the tenancy has come to an end; -
25“long lease” means a lease which—
(a)is a long lease for the purposes of Chapter 1 of Part 1 of the
Leasehold Reform, Housing and Urban Development Act 1993,
or(b)in the case of a shared ownership lease (within the meaning
30given by section 7(7) of that Act), would be a lease within
paragraph (a) of this definition if the tenant’s total share (within
the meaning given by that section) were 100%; -
“registered social landlord” means a body registered as a social landlord
under Chapter 1 of Part 1 of the Housing Act 1996; -
35“tenant” includes a person who proposes to be a tenant under a tenancy
and a person who has ceased to be a tenant under a tenancy because the
tenancy has come to an end.
(2) In this Chapter “local authority” means—
(a) a county council,
(b) 40a county borough council,
(c) a district council,
(d) a London borough council,
(e)
the Common Council of the City of London in its capacity as local
authority, or
(f) 45the Council of the Isles of Scilly.
(3)
References in this Chapter to a tenancy include a proposed tenancy and a
tenancy that has come to an end.
Consumer Rights BillPage 46
(4)
References in this Chapter to anything which is payable, or which a person is
liable to pay, to a letting agent include anything that the letting agent claims a
person is liable to pay, regardless of whether the person is in fact liable to pay
it.
(5) 5Regulations under this Chapter are to be made by statutory instrument.
(6)
A statutory instrument containing (whether alone or with other provision)
regulations made by the Secretary of State under section 85(11) is not to be
made unless a draft of the instrument has been laid before, and approved by a
resolution of, each House of Parliament.
(7)
10A statutory instrument containing (whether alone or with other provision)
regulations made by the Welsh Ministers under section 85(12) is not to be made
unless a draft of the instrument has been laid before, and approved by a
resolution of, the National Assembly for Wales.
(8)
A statutory instrument containing regulations made by the Secretary of State
15under this Chapter other than one to which subsection (6) applies is subject to
annulment in pursuance of a resolution of either House of Parliament.
(9)
A statutory instrument containing regulations made by the Welsh Ministers
under this Chapter other than one to which subsection (7) applies is subject to
annulment in pursuance of a resolution of the National Assembly for Wales.
(10) 20Regulations under this Chapter—
(a) may make different provision for different purposes;
(b) may make provision generally or in relation to specific cases.
(11)
Regulations under this Chapter may include incidental, supplementary,
consequential, transitional, transitory or saving provision.
CHAPTER 4 25General
87 Power to make consequential provision
(1)
The Secretary of State may by order made by statutory instrument make
provision in consequence of this Act.
(2) The power conferred by subsection (1) includes power—
(a)
30to amend, repeal, revoke or otherwise modify any provision made by
an enactment or an instrument made under an enactment (including an
enactment passed or instrument made in the same Session as this Act);
(b) to make transitional, transitory or saving provision.
(3)
A statutory instrument containing (whether alone or with other provision) an
35order under this section which amends, repeals, revokes or otherwise modifies
any provision of primary legislation is not to be made unless a draft of the
instrument has been laid before, and approved by a resolution of, each House
of Parliament.
(4)
A statutory instrument containing an order under this section which does not
40amend, repeal, revoke or otherwise modify any provision of primary
legislation is subject to annulment in pursuance of a resolution of either House
of Parliament.
Consumer Rights BillPage 47
(5) In this section—
-
“enactment” includes an Act of the Scottish Parliament, a Measure or Act
of the National Assembly for Wales and Northern Ireland legislation; -
“primary legislation” means—
(a)5an Act of Parliament,
(b)an Act of the Scottish Parliament,
(c)a Measure or Act of the National Assembly for Wales, and
(d)Northern Ireland legislation.
88 Power to make transitional, transitory and saving provision
(1)
10The Secretary of State may by order made by statutory instrument make
transitional, transitory or saving provision in connection with the coming into
force of any provision of this Act other than the coming into force of Chapter 3
of this Part in relation to Wales.
(2)
The Welsh Ministers may by order made by statutory instrument make
15transitional, transitory or saving provision in connection with the coming into
force of Chapter 3 of this Part in relation to Wales.
89 Financial provision
There is to be paid out of money provided by Parliament—
(a)
any expenses incurred by a Minister of the Crown or a government
20department under this Act, and
(b)
any increase attributable to this Act in the sums payable under any
other Act out of money so provided.
90 Extent
(1)
The amendment, repeal or revocation of any provision by this Act has the same
25extent as the provision concerned.
(2) Section 27 extends only to Scotland.
(3) Chapter 3 of this Part extends only to England and Wales.
(4)
Subject to that, this Act extends to England and Wales, Scotland and Northern
Ireland.
91 30Commencement
(1)
The provisions of this Act listed in subsection (2) come into force on the day on
which this Act is passed.
(2) Those provisions are—
(b) 35Chapter 3 of this Part in so far as it confer powers to make regulations,
(d) this Chapter, and
(e) paragraph 12 of Schedule 5.
(3) Chapter 3 of this Part comes into force—
Consumer Rights BillPage 48
(a)
in relation to England, on such day as the Secretary of State may
appoint by order made by statutory instrument;
(b)
in relation to Wales, on such day as the Welsh Ministers may appoint
by order made by statutory instrument.
(4)
5The other provisions of this Act come into force on such day as the Secretary of
State may appoint by order made by statutory instrument.
(5) An order under this section may appoint different days for different purposes.
92 Short title
This Act may be cited as the Consumer Rights Act 2014.
Consumer Rights BillPage 49
SCHEDULES
Section 60
SCHEDULE 1 Amendments consequential on Part 1
Supply of Goods (Implied Terms) Act 1973 (c. 13)Supply of Goods (Implied Terms) Act 1973 (c. 13)
1 5The Supply of Goods (Implied Terms) Act 1973 is amended as follows.
2
For “hire-purchase agreement” (or “hire purchase agreement”) in each place,
except in section 15(1), substitute “relevant hire-purchase agreement”.
3
(1)
Section 10 (implied undertakings as to quality or fitness) is amended as
follows.
(2) 10Omit subsections (2D) to (2F).
(3) Omit subsection (8).
4
(1)
Section 11A (modification of remedies for breach of statutory condition in
non-consumer cases) is amended as follows.
(2)
In subsection (1) omit “then, if the person to whom the goods are bailed does
15not deal as consumer,”.
(3) In subsection (3), for paragraph (b) substitute—
“(b) that the agreement was a relevant hire-purchase agreement.”
(4) Omit subsection (4).
5
In section 12A (remedies for breach of hire-purchase agreement as respects
20Scotland) omit subsections (2) and (3).
6 Omit section 14 (special provision as to conditional sale agreements).
7 (1) Section 15 (supplementary) is amended as follows.
(2) In subsection (1)—
(a) in the definition of “hire-purchase agreement” at the end insert—
-
25“and a hire-purchase agreement is relevant if it is not
a contract to which Chapter 2 of Part 1 of the
Consumer Rights Act 2014 applies;”, and
(b) omit the definition of “producer”.
(3) Omit subsection (3).
30Sale of Goods Act 1979 (c. 54)Sale of Goods Act 1979 (c. 54)
8 The Sale of Goods Act 1979 is amended as follows.