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
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(a)
only if approved by the Secretary of State, and
(b)
subject to any modifications made by the Secretary of State.
(6)
Before making any modifications the Secretary of State must consult the body
to which the direction was given.
(7)
The Secretary of State may make a scheme or schemes for the transfer to the
5
Council of the property, rights and liabilities of a body to which this section
applies.
(8)
Schedule 4 makes further provision about transfer schemes.
(9)
In this section “transfer scheme” means a scheme made under or by virtue of
subsection (2)(a) or (7).
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Directions
(1)
The Secretary of State may direct a body to which section 35 applies to supply
to the Secretary of State such information specified or described in the direction
as the Secretary of State may require in relation to—
(a)
the body’s property, rights or liabilities, or
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(b)
the exercise by the body of its functions.
(2)
A direction under subsection (1)—
(a)
must specify the period within which the information is to be provided,
and
(b)
may require the information to be supplied in a specified form.
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(3)
A body given a direction under subsection (1) must comply with it within the
specified period.
(4)
The Secretary of State may direct a body to which section 35 applies not to take
any action of a specified kind, or in specified circumstances.
(5)
Before giving, varying or revoking a direction under this section, the Secretary
25
of State must consult—
(a)
the body to which the direction is to be or has been given, and
(b)
the Council.
(6)
In this section “specified” means specified in the direction given by the
Secretary of State.
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Alteration of the Council’s functions
37
Extension of the Council’s functions: Great Britain
(1)
The Secretary of State may, by order, confer on the Council any other function
or functions if the Secretary of State considers that it is in the interests of
consumers generally, or consumers of a particular description, to do so.
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(2)
The Secretary of State may only confer a function on the Council under this
section if the function appears to the Secretary of State to be connected (directly
or indirectly) to an existing or former function of the Council.
(3)
Before making an order under subsection (1), the Secretary of State must
consult—
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(a)
the Council,

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(b)
if it appears to the Secretary of State that the exercise of any function
conferred by the order might affect Wales in relation to any matter as
respects which functions are exercisable by the Welsh Ministers, those
Ministers, and
(c)
such other persons as the Secretary of State considers appropriate.
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(4)
An order under this section may not make provision which would be within
the legislative competence of the Scottish Parliament if it were contained in an
Act of that Parliament.
(5)
An order under this section which makes provision which would be within the
legislative competence of the National Assembly for Wales if it were contained
10
in a Measure of the Assembly (or, if the order is made after the Assembly Act
provisions come into force, an Act of the Assembly) may only be made with the
consent of the Assembly.
(6)
In subsection (5) “the Assembly Act provisions” has the meaning given by
section 103(8) of the Government of Wales Act 2006 (c. 32).
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38
Removal of the Council’s functions in relation to Northern Ireland
(1)
This section applies where the Secretary of State is satisfied that satisfactory
arrangements are in place for a body (other than the Council) to exercise
functions corresponding to the functions exercisable by the Council in relation
to Northern Ireland.
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(2)
The Secretary of State may by order repeal—
(a)
section 1(2)(c) (requirement to establish and maintain the Northern
Ireland Postal Services Committee);
(b)
section 2(1)(c) (functions which the Northern Ireland Postal Services
Committee is authorised to exercise);
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(c)
section 3(2)(b) (Northern Ireland consumers of relevant postal
services);
(d)
section 16(1)(b)(investigations relating to public post offices in
Northern Ireland);
(e)
any other provision of this Part, so far as it extends to Northern Ireland.
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(3)
Before making an order under this section, the Secretary of State must
consult—
(a)
the Council, and
(b)
such other persons as the Secretary of State considers appropriate.
Representation on other consumer panels
35
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The Financial Services Consumer Panel
In section 10 of the Financial Services and Markets Act 2000 (c. 8) (the
Consumer Panel), after subsection (5) insert—
“(5A)
The Secretary of State may direct the Authority to appoint as a member
of the Consumer Panel a person specified by the Secretary of State
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who—
(a)
is a non-executive member of the National Consumer Council,
and

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(b)
is nominated for the purposes of this subsection by the National
Consumer Council after consultation with the Authority.
(5B)
Only one person may, at any time, be a member of the Consumer Panel
appointed in accordance with a direction under subsection (5A); but
that does not prevent the Authority appointing as a member of the
5
Consumer Panel any person who is also a member of the National
Consumer Council.
(5C)
A person appointed in accordance with a direction under subsection
(5A) ceases to be a member of the Panel on ceasing to be a non-
executive member of the National Consumer Council.”
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The OFCOM Consumer Panel
In section 17 of the Communications Act 2003 (c. 21) (membership etc of the
Consumer Panel)—
(a)
after subsection (4) insert—
“(4A)
The Secretary of State may direct OFCOM to appoint as a
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member of the Consumer Panel a person specified by the
Secretary of State who—
(a)
is a non-executive member of the National Consumer
Council, and
(b)
is nominated for the purposes of this subsection by the
20
National Consumer Council after consultation with
OFCOM.
(4B)
Only one person may, at any time, be a member of the
Consumer Panel appointed in accordance with a direction
under subsection (4A); but that does not prevent OFCOM
25
appointing as a member of the Consumer Panel any person who
is also a member of the National Consumer Council.
(4C)
A person appointed in accordance with a direction under
subsection (4A) ceases to be a member of the Panel on ceasing
to be a non-executive member of the National Consumer
30
Council.”, and
(b)
in subsection (5) for “subsection (3) or (4)” substitute “subsections (3) to
(4A)”.
Interpretation
41
Interpretation of Part 1
35
(1)
In this Part—
“distribution system” has the meaning given by section 4(4) of the
Electricity Act 1989 (c. 29);
“financial year” (except in Schedule 3) means—
(a)
the period beginning with the day on which the Council is
40
established and ending with the next following 31 March, and
(b)
each successive period of 12 months;
“functions” includes powers and duties;
“gas” has the meaning given by section 48(1) of the Gas Act 1986 (c. 44);

Consumers, Estate Agents and Redress Bill [HL]
Part 2 — Complaints handling and redress schemes
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“licensed water supplier” means a company holding a water supply
licence under Chapter 1A of Part 2 of the Water Industry Act 1991
(c. 56);
“modify” includes amend, add to, revoke or repeal (and references to
“modification” are to be read accordingly);
5
“postal services” has the same meaning as in the Postal Services Act 2000
(c. 26) (see section 125(1) of that Act);
“regulatory body” means a person who exercises regulatory functions in
relation to a particular description of persons with a view to ensuring
compliance with particular standards of conduct (whether statutory or
10
non-statutory) by those persons;
“relevant postal services” means any postal services provided in
connection with the provision of a universal postal service (within the
meaning of the Postal Services Act 2000) and any other postal services
which are provided, or authorised or required to be provided, by a
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licence holder under Part 2 of that Act in accordance with a licence
under that Part.
(2)
In this Part—
(a)
expressions used, as regards matters relating to gas, which are defined
in section 48 of the Gas Act 1986 (c. 44) have the same meaning as in
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Part 1 of that Act, and
(b)
expressions used, as regards matters relating to electricity, which are
defined in section 64 of the Electricity Act 1989 (c. 29), have the same
meaning as in Part 1 of that Act.
Part 2
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Complaints handling and redress schemes
Introductory
42
Interpretation of Part 2
(1)
In this Part—
“regulated provider” means a person within an entry in column 1 of the
30
table;
“relevant consumer”, in relation to a regulated provider, means a person
within the corresponding entry in column 2 of the table;
“relevant regulator”, in relation to a regulated provider, means the body
specified in the corresponding entry in column 3 of the table.
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Consumers, Estate Agents and Redress Bill [HL]
Part 2 — Complaints handling and redress schemes
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Regulated provider
Relevant consumer
Relevant regulator

A person holding a licence under
A person who is a consumer in
The Gas and

section 7A(1) of the Gas Act 1986 (c. 44)
relation to gas supplied by a gas
Electricity Markets

(supply licences).
supplier (within the meaning of
Authority

Part 1 of that Act).

5

A person holding a licence under
A person (other than a gas
The Gas and

section 7(2) of the Gas Act 1986
licensee) who is a consumer in
Electricity Markets

(transportation licences).
relation to services provided by
Authority

a gas transporter (within the

meaning of Part 1 of that Act).

10

A person holding a licence under
A person who is a consumer in
The Gas and

section 6(1)(d) of the Electricity Act
relation to electricity supplied
Electricity Markets

1989 (c. 29) (supply licences).
by an electricity supplier (within
Authority

the meaning of Part 1 of that

Act).

15

A person holding a licence under
A person (other than an
The Gas and

section 6(1)(c) of the Electricity Act
electricity licensee) who is a
Electricity Markets

1989 (distribution licences).
consumer in relation to services
Authority

provided by an electricity

distributor (within the meaning

20

of Part 1 of that Act).

A person holding a licence under Part
A person who is a consumer in
The Postal Services

2 of the Postal Services Act 2000 (c. 26).
relation to relevant postal
Commission

services (within the meaning of

section 41).

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A water undertaker, sewerage
A person who is a consumer in
The Water Services

undertaker or licensed water supplier.
relation to services provided by
Regulation Authority

a water undertaker, sewerage

undertaker or licensed water

supplier in its capacity as such.

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(2)
In this Part—
“consumer” has the same meaning as in Part 1;
“consumer complaint” means a complaint which is made against a
regulated provider by or on behalf of a person in that person’s capacity
as a relevant consumer in relation to the regulated provider;
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“licensed water supplier” has the same meaning as in Part 1;
“regulator” means a body listed in column 3 of the table.
(3)
In this Part references to a regulator’s regulated providers are to the regulated
providers in relation to which the regulator is the relevant regulator.
(4)
In this section—
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“electricity licensee” means—
(a)
an electricity supplier (within the meaning of Part 1 of the
Electricity Act 1989);
(b)
an electricity distributor (within the meaning of that Part);
(c)
the holder of a licence under section 6(1)(a), (b) or (e) of that Act
45
(generation licences, transmission licences and interconnector
licences), except where the holder is acting otherwise than for
purposes connected with the carrying on of activities
authorised by the licence;
“gas licensee” means—
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Consumers, Estate Agents and Redress Bill [HL]
Part 2 — Complaints handling and redress schemes
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(a)
a gas supplier (within the meaning of Part 1 of the Gas Act 1986
(c. 44));
(b)
a gas transporter (within the meaning of that Part);
(c)
a gas shipper (within the meaning of that Part);
(d)
the holder of a licence under section 7ZA of that Act (licences for
5
operation of gas interconnectors), except where the holder is
acting otherwise than for purposes connected with the carrying
on of activities authorised by the licence.
Standards for handling complaints
43
Standards for handling complaints
10
(1)
A regulator must by regulations prescribe standards for the handling by its
regulated providers of consumer complaints made to them.
(2)
The regulations may prescribe standards in relation to all consumer
complaints, or consumer complaints of a kind specified in the regulations.
(3)
In particular, the regulations may specify a kind of consumer complaint by
15
reference to the subject-matter of a complaint, or the description of person
making a complaint.
(4)
Regulations under this section may be made only with the consent of the
Secretary of State.
(5)
A regulator must make arrangements for securing that regulations made by it
20
under this section are available to the public, by whatever means it considers
appropriate.
(6)
If a date is prescribed in relation to a regulator for the purposes of this
subsection, from that date subsection (1) has effect in relation to that regulator
as if, in that subsection, for “must” there were substituted “may”.
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(7)
In subsection (6) “prescribed” means prescribed by order made by the
Secretary of State under this section.
(8)
Before prescribing a date in relation to a regulator for the purposes of
subsection (6), the Secretary of State must consult—
(a)
the regulator,
30
(b)
the Council, and
(c)
such other persons as the Secretary of State considers appropriate.
(9)
This section does not apply to the Water Services Regulation Authority.
44
Requirements for making regulations under section 43
(1)
Before making regulations under section 43 a regulator must—
35
(a)
arrange for such research as it considers appropriate with a view to
discovering the views of a representative sample of persons likely to be
affected, and consider the results,
(b)
publish a notice of its proposals (a “proposals notice”) in such manner
as the regulator considers appropriate for bringing it to the attention of
40
those likely to be affected by the proposals,
(c)
consider any representations duly made, and

Consumers, Estate Agents and Redress Bill [HL]
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(d)
consult persons or bodies appearing to it to be representative of persons
likely to be affected by the proposals.
(2)
The proposals notice must—
(a)
set out the standards the regulator proposes to prescribe,
(b)
give the reasons why the regulator proposes to prescribe those
5
standards,
(c)
explain how the standards will be enforced, and
(d)
specify a time (not being earlier than the end of the period of 30 days
beginning with the day on which the notice is published) before which
representations may be made.
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Information with respect to compliance with complaints handling standards
(1)
This section applies in relation to standards prescribed by a regulator by
regulations under section 43 in relation to its regulated providers (or some of
them).
(2)
The Council must publish such statistical information as it considers
15
appropriate relating to the levels of compliance with the standards which those
regulated providers have achieved.
(3)
That information must be published in such form and manner, and with such
frequency, as the Council thinks appropriate.
(4)
Schedule 5 makes further provision with respect to information about
20
compliance with complaints handling standards.
46
Supply of information to consumers
(1)
A regulator may make regulations requiring each of its regulated providers in
relation to which standards are prescribed under section 43 to give to the
provider’s relevant consumers such information as may be specified or
25
described in the regulations about—
(a)
the standards, and
(b)
the levels of compliance with those standards achieved by the provider.
(2)
Regulations under this section may include provision specifying the form and
manner in which, and the frequency with which, information is to be given.
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Requirements relating to redress schemes
47
Membership of redress scheme
(1)
The Secretary of State may by order require regulated providers to be members
of a redress scheme which is—
(a)
approved by their relevant regulator in accordance with section 49, or
35
(b)
administered by the Secretary of State (or a person appointed by the
Secretary of State) and designated by the Secretary of State as an
appropriate redress scheme in relation to them.
(2)
The order may provide that the requirement applies only in relation to
consumer complaints of a kind specified in the order.
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