Consumers, Estate Agents and Redress Bill [HL]

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Consumers, Estate Agents and Redress Bill [HL]

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
1

A
Bill
[AS AMENDED IN PUBLIC BILL COMMITTEE]
To
Make provision for the establishment of the National Consumer Council and
its functions; to make provision for the abolition of other consumer bodies; to
make provision about the handling of consumer complaints by certain
providers; to make provision requiring certain providers to be members of
redress schemes in respect of consumer complaints; to amend the Estate
Agents Act 1979; to make provision about the cancellation of certain contracts
concluded away from business premises; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Part 1
The National Consumer Council
The National Consumer Council and territorial committees
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Establishment of the National Consumer Council and its territorial
committees
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(1)
There is to be a body corporate called the National Consumer Council or, in
Welsh, Cyngor Defnyddwyr Cenedlaethol (“the Council”).
(2)
The Council must establish and maintain—
(a)
a committee for Scotland to be known as the Scottish Consumer
Council;
10
(b)
a committee for Wales to be known as the Welsh Consumer Council or,
in Welsh, Cyngor Defnyddwyr Cymru;
(c)
a committee for Northern Ireland to be known as the Northern Ireland
Postal Services Committee.

Bill 96 54/2

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(3)
In this Part references to a “territorial committee” are to a committee
established under subsection (2).
(4)
Schedule 1 is about the Council and its territorial committees.
2
The territorial committees
(1)
The territorial committees may exercise, on behalf of the Council, the following
5
functions—
(a)
in the case of the Scottish Consumer Council, the Council’s functions
under sections 8 to 17, 19 and 21 to 26, so far as they are exercisable in
relation to Scotland;
(b)
in the case of the Welsh Consumer Council, the Council’s functions
10
under those sections, so far as they are exercisable in relation to Wales;
(c)
in the case of the Northern Ireland Postal Services Committee—
(i)
the Council’s functions under sections 8 to 12, 15 to 17, 19, 21
and 23 to 26 so far as they are exercisable in relation to Northern
Ireland, and
15
(ii)
the Council’s functions under section 22 so far as they are
exercisable in relation to consumer matters which relate to
relevant postal services in relation to Northern Ireland.
(2)
For the purpose of facilitating or improving co-ordination in relation to the
carrying out of its functions, the Council may from time to time—
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(a)
impose restrictions or conditions on the exercise by a territorial
committee of a function by virtue of subsection (1);
(b)
give a territorial committee general or specific directions relating to the
exercise of a function by virtue of that subsection.
(3)
Nothing in subsection (1) prevents the Council from exercising any of its
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functions referred to in that subsection.
(4)
A territorial committee also has the following purposes—
(a)
the provision of advice and information to the Council about consumer
matters affecting the area for which the committee is established,
(b)
the provision of advice to the Council about the exercise of the
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Council’s functions in so far as they affect that area, and
(c)
such other purposes as the Council may determine (including the
exercise of any functions delegated to the committee under paragraph
23 of Schedule 1).
"Consumer", "consumer matters" and "designated consumers"
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3
“Consumer” and “consumer matters”
(1)
In this Part “consumer” and “consumer matters” have the meaning given by
this section.
(2)
“Consumer” means—
(a)
a person who purchases, uses or receives, in Great Britain, goods or
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services which are supplied in the course of a business carried on by the
person supplying or seeking to supply them, or
(b)
a person who purchases, uses or receives relevant postal services in
Northern Ireland.

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(3)
“Consumer” includes both an existing consumer and a future consumer.
(4)
For the purposes of subsection (2)—
(a)
a person who uses services includes, in relation to relevant postal
services, an addressee;
(b)
“goods” includes land or an interest in land;
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(c)
“business” includes a profession and the activities of any government
department, local or public authority or other public body.
(5)
“Consumer matters” means—
(a)
the interests of consumers, and
(b)
any matter connected with those interests.
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4
“Designated consumers”
(1)
In this Part “designated consumers” means—
(a)
consumers in relation to gas conveyed through pipes or electricity
conveyed by distribution systems or transmission systems, and
(b)
consumers in relation to relevant postal services.
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(2)
The Secretary of State may, by order, amend subsection (1) so as—
(a)
to make any description of consumers within subsection (3)
“designated consumers” for the purposes of this Part;
(b)
to provide for any description of consumers to cease to be “designated
consumers” for those purposes.
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(3)
The consumers within this subsection are consumers in England and Wales in
relation to services provided by a water undertaker, a sewerage undertaker or
a licensed water supplier, in its capacity as such.
(4)
Before making an order under subsection (2), the Secretary of State must
consult—
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(a)
the Council,
(b)
in the case of a relevant order, the Scottish Ministers,
(c)
the Welsh Ministers, and
(d)
such other persons as the Secretary of State considers appropriate.
(5)
For this purpose a “relevant order” is an order which relates to any description
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of—
(a)
consumers in relation to gas conveyed through pipes or electricity
conveyed by distribution systems or transmission systems, or
(b)
consumers in relation to relevant postal services.
Determining priorities
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5
Forward work programmes
(1)
The Council must before each financial year publish a document (the “forward
work programme”) containing—
(a)
a statement of any priorities of the Council for the year in relation to
designated consumers generally or any description of designated
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consumers;

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(b)
a general description of the main activities (including any projects)
which it plans to undertake during the year in relation to designated
consumers generally or any description of designated consumers;
(c)
a statement of any other priorities of the Council for the year;
(d)
a general description of any other projects which it plans to undertake
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during the year (other than those comprising routine activities in the
exercise of its functions).
(2)
The description of a project under subsection (1)(b) or (d) must include the
objectives of the project.
(3)
The forward work programme for any year must also include—
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(a)
an estimate of the overall expenditure which the Council expects to
incur during the year in the exercise of its functions, and
(b)
an estimate of the expenditure (if any) which the Council expects to
incur during the year in the exercise of its functions in relation to
designated consumers.
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(4)
An estimate under subsection (3)(b) must identify the expenditure (if any)
which the Council expects to incur in the exercise of its functions in relation to
each of the following—
(a)
consumers in relation to gas conveyed through pipes or electricity
conveyed by distribution systems or transmission systems;
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(b)
consumers in relation to relevant postal services;
(c)
consumers who are designated consumers by virtue of an order under
section 4(2)(a).
(5)
Before publishing the forward work programme for any year, the Council
must publish a notice—
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(a)
containing a draft of the forward work programme, and
(b)
specifying the period within which representations about the proposals
contained in it may be made,

and must consider any representations which are duly made and not
withdrawn.
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(6)
The notice under subsection (5) must be published by the Council in such
manner as it considers appropriate for the purpose of bringing the matters
contained in the notice to the attention of persons likely to have an interest in
them.
(7)
The Council must send a copy of any notice given by it under subsection (5)
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to—
(a)
the Secretary of State,
(b)
the Scottish Ministers,
(c)
the Welsh Ministers,
(d)
the Office of Fair Trading, and
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(e)
any regulatory body which the Council considers might have an
interest in the content of the notice.
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General provision about functions
(1)
In exercising its functions the Council must comply with the requirements of
this section.
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Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(2)
The Council must have regard to the forward work programme published
under section 5.
(3)
The Council must have regard to the interests of consumers in different areas.
(4)
The Council must have regard to the interests of consumers that are one or
more of the following—
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(a)
disabled or chronically sick individuals;
(b)
individuals of pensionable age;
(c)
individuals with low incomes;
(d)
individuals residing in rural areas.
(5)
But nothing in subsection (4) is to be taken as implying that regard may not be
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had to the interests of other descriptions of consumers.
(6)
The Council must have regard to the need to use its resources in the most
efficient and economic way.
(7)
In discharging the duty imposed by subsection (6), the Council must take
account of the existence of any other public bodies with the same functions as,
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or similar functions to, those of the Council and the activities carried on by such
bodies.
(8)
The Council must exercise its functions in the manner which it considers is best
calculated to contribute to the achievement of sustainable development.
(9)
Subject to section 13 (investigation of complaints relating to disconnection of
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gas or electricity), nothing in this Part imposes on the Council a duty to exercise
any of its functions on behalf of or at the request of a particular consumer.
(10)
A person is of pensionable age for the purposes of this section if—
(a)
the person has attained pensionable age (within the meaning given by
the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 (c. 26)),
25
or
(b)
in the case of a man born before 6 April 1955, he is the same age as a
woman who has attained pensionable age (within the meaning so
given).
Annual report
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7
Annual report
(1)
The Council must prepare a report for each financial year on its activities
during the year (“the annual report”).
(2)
The annual report must—
(a)
contain a report on the progress of the projects described in the
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Council’s forward work programme for that year published under
section 5,
(b)
contain details of any activities undertaken in that year under section
22 (voluntary activities), and
(c)
deal with such other matters as the Secretary of State may from time to
40
time direct.
(3)
As soon as reasonably practicable after the end of each financial year, the
Council must send a copy of the annual report prepared for that year to—

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(a)
the Secretary of State,
(b)
the Scottish Ministers, and
(c)
the Welsh Ministers.
(4)
The Secretary of State must lay a copy of the annual report before Parliament.
(5)
The Council must arrange for the annual report to be published.
5
The core functions
8
The representative function
(1)
The Council may—
(a)
provide advice and information to persons within subsection (2) about
consumer matters,
10
(b)
make proposals to such persons about consumer matters, and
(c)
represent the views of consumers on consumer matters to such persons.
(2)
Those persons are—
(a)
any Minister of the Crown or government department;
(b)
the Scottish Ministers;
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(c)
the Welsh Ministers;
(d)
any regulatory body established by or under an enactment;
(e)
the European Commission or any other international organisation;
(f)
any other person whom the Council considers might have an interest in
the matter in question.
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(3)
In this section “enactment” means—
(a)
an Act of Parliament,
(b)
an Act of the Scottish Parliament,
(c)
a Measure or Act of the National Assembly for Wales, or
(d)
Northern Ireland legislation,
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whenever passed or made.
9
The research function
The Council may obtain and keep under review—
(a)
information about consumer matters,
(b)
information about the views of consumers on consumer matters, and
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(c)
information of such other description as may be prescribed by the
Secretary of State by order.
10
The information function
(1)
The Council may facilitate the dissemination to consumers of advice and
information—`
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(a)
about the Council and its functions,
(b)
about consumer matters, and
(c)
about such other matters as may be prescribed by the Secretary of State
by order.

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Part 1 — The National Consumer Council
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(2)
In exercising the power conferred by subsection (1) the Council may (among
other things)—
(a)
publish or otherwise make available information in any manner the
Council thinks appropriate for the purpose of bringing it to the
attention of those likely to be interested;
5
(b)
support (financially or otherwise), facilitate or co-ordinate the activities
of other persons.
Powers of investigation
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General powers of investigation
(1)
The Council may investigate—
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(a)
a complaint made by or on behalf of a consumer which appears to the
Council to raise one or more issues of general relevance;
(b)
any matter which appears to the Council to be, or to be related to, a
problem which affects or may affect consumers generally or consumers
of a particular description.
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(2)
For this purpose, a complaint raises an issue of general relevance if it raises—
(a)
a novel issue which affects or may affect consumers generally or
consumers of a particular description, or
(b)
any other issue which has or may have an important effect on
consumers generally or consumers of a particular description.
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12
Investigation of complaints made by vulnerable designated consumers
(1)
Subsection (3) applies to a complaint which is made—
(a)
by or on behalf of a vulnerable person in that person’s capacity as a
designated consumer (“the designated consumer”),
(b)
against a person (“the supplier”) who in the course of a business carried
25
on by the supplier supplies or seeks to supply, or refuses to supply,
goods or services to the designated consumer, and
(c)
in respect of a matter connected with the supply of goods or services by
the supplier to the designated consumer or a refusal by the supplier to
supply goods or services to the designated consumer.
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(2)
For this purpose a person is “vulnerable” if the Council is satisfied that it is not
reasonable to expect that person to pursue the complaint on that person’s own
behalf.
(3)
Where a complaint to which this subsection applies is referred to the Council
by or on behalf of the designated consumer, the Council may investigate the
35
complaint for the purpose of determining whether it is appropriate to take any
action under subsection (4).
(4)
Where it appears to the Council to be appropriate to do so with a view to
assisting in reaching a satisfactory resolution of a complaint referred to it under
this section, the Council may—
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(a)
provide advice to the designated consumer or, if the complaint was
made by another person on the designated consumer’s behalf, that
person;
(b)
make representations on behalf of the designated consumer to the
supplier about anything to which the complaint relates.
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