Consumer Rights Bill
Debate between Baroness Jolly and Baroness King of Bow(10 years, 1 month ago)
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Baroness King of Bow (Lab)
My Lords, the Government clearly believe that default-on internet filtering is the best approach to protect children. Common sense tells us that they are right but, as the noble Baroness, Lady Howe, pointed out in her powerful speech, if they are right on this point then they are wrong to take a non-statutory approach. Such an approach leaves possibly 1 million children unprotected and, as the noble Lord, Lord Alton, said, it boils down to the question, “Do the 10% matter or not?”. Do those children matter or not?
The background context to this is well rehearsed: the digital age gives our children more opportunities than they have ever had before, but on occasion it also puts them at grave risk. The NSPCC says that 24% of nine to 16 year-olds in the UK saw sexual images in 2012-13 online or offline. Some 80% of those were worried by what they saw. A recent survey by the Asda Mumdex found that 82% of mums in this country want the Government to tackle child protection online. On top of that, Ofcom reports that over half of parents with children at home do not use parental controls, and I am sure that we are convinced that in the other half of those households the kids would be able to get around those controls in any case.
On a related issue, the blacklisting of child abuse terms by Google and Microsoft was indeed a step in the right direction, but the Government must ensure that police are resourced to deal with child abuse imagery. This cannot be only a voluntary approach when child safety is at risk. It is not only about child safety today; it is about adult behaviour tomorrow. We do not want a generation brought up to think that violent pornography is the norm. That is why we on these Benches support this amendment to require all internet service providers to provide default-on internet filters. Those filters should use British Board of Film Classification standards to define age-inappropriate material. This was the substance of Labour’s Opposition Day debate last summer in the other place.
We recognise that the online world shifts daily, but one thing is for sure: young people today spend more and more time online. Ironically, though, as the noble Baroness, Lady Howe, and one of the other speakers pointed out, the protection that they receive online is less than the protection that they receive offline in the real world. While it would be quite hard for a 12 year-old, say, to buy a pornographic DVD from a shop, it would be relatively easy for that same 12 year-old to buy or download it online, and that is what the average 12 year-old would prefer to do these days. Why are we helping them to damage themselves?
We seem to have a protection regime that is a bit of a nonsense. It has been set up by digital dinosaurs such as ourselves and it provides digital natives—our children—with less protection online than offline. The result is clear. Unfortunately, the Government have been too slow to tackle internet child safety. Their rhetoric, however, particularly that of the Prime Minister, has been off the scale in its attempts to pacify parents. I cannot help but quote the PM’s words that we heard earlier from the noble Baroness, Lady Howe; he said that it was about “protecting childhood itself”. He went on to say:
“That is what is at stake, and I will do whatever it takes to keep our children safe”.
No, he will not. He will not even make default internet filtering a statutory duty. Come on; that is what it takes. It is not asking the earth. As we have heard, in this country everything under the sun can be a statutory duty, but not, it seems, the critical issue of online protection for our children.
Moreover, the protection that the Government have sought to put in place via the ISPs makes digital natives laugh out loud. A 12 year-old trying to access pornography on their parents’ computer will be delighted to find that they do not have to verify that they are over 18 before secretly accessing adult content. This is because the self-regulatory approach championed by the Government has not forced ISPs to introduce proper age verification for those wishing to disable default filters. I should add that there are many areas where I agree with the self-regulatory approach; it is just that online protection for children is not one of them. The risks are too great and the dangers too apparent.
I admit that I remain baffled by the Government’s approach on this issue. I trust that they will not be baffled if and when they lose a vote on this amendment on Report. I thank the noble Baroness, Lady Howe, for tabling this important amendment and I look forward to supporting her on Report.
Baroness Jolly
My Lords, I reassure the noble Baroness, Lady Howe, that the Government remain committed to improving the safety of children online and have a strong track record of working with the internet industry to drive progress. I thank her for her continued interest in this area. I am aware that this amendment is drawn from a Private Member’s Bill and that similar provisions were debated earlier this year as part of the Children and Families Bill. Speaking as a parent and grandparent, this issue is close to my heart. I know that many noble Lords will feel similarly and I am pleased to update the Committee on recent progress in this area.
The Prime Minister’s speech in July last year set out a series of measures, to which he asked the industry to commit, to help parents to limit their children’s access to age-inappropriate and potentially harmful material. We have seen excellent progress in all these. As the noble Baroness said, the four major ISPs, which cover almost 90% of the UK’s broadband market—BT, Sky, TalkTalk and Virgin Media—have delivered on their commitment to provide parents with the ability to easily filter content. They all now present new customers with an unavoidable choice about whether to use free, family-friendly network-level filters. Existing companies are making good headway with the rollout of these provisions. Smaller providers are also stepping up: for example, KC launched a free parental control service for its broadband customers last month. This has been a huge and complex undertaking, but it has seen results.
The noble Baroness might be interested in public wi-fi providers. The six major providers, covering more than 90% of the market, now provide family-friendly public wi-fi wherever children are likely to be. This summer, the Registered Digital Institute launched the Friendly WiFi logo, giving parents the assurance that a particular business, retailer or public space is filtering out inappropriate material.
Three of the UK’s four major mobile network operators already automatically provide adult content filters for pay-as-you-go and contract customers, with the remaining provider, Three, committed to doing so by July 2015. This means that the great majority of mobile customers are already covered by default-on filters. The Government have also been working with mobile virtual network operators to ensure that they are doing the same. These measures could not have been achieved as quickly through legislation, given the pace of change in this complex environment.
I thank the noble Baroness for setting out the reasons why she feels that further action is needed. The Government are of course open to considering different options and it would be appropriate if we had a meeting between now and Report.
Consumer Rights Bill
Debate between Baroness Jolly and Baroness King of Bow(10 years, 1 month ago)
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Baroness King of Bow (Lab)
My Lords, the noble Lord, Lord Taverne, makes a persuasive argument, to which I listened with great interest. It is interesting to note that we use metres and kilometres for our athletics, miles per gallon for our cars, pints for our milk and beer, miles for our speed limits, feet for our height measurements, and our distances are often measured in yards. As the noble Lord pointed out, we have been hemming and hawing on this issue for 800 years, so I doubt that we will sort it out in the next eight minutes. Suffice it to say that Amendment 81 would safeguard a critical element of British heritage, not to mention a key aspect of British identity—the right to buy beer and milk in pints. For some reason, the self-esteem of the British people depends on it. I thank the noble Lord for bringing this issue before us. As my noble friend Lord Harris said, the motivation behind these amendments is entirely helpful. I hope that we will get a thoughtful response from the Minister and I look forward to returning to this on Report.
Baroness Jolly (LD)
My Lords, I start by reassuring noble Lords that a statutory framework for the use of units of measurement is already in place. The Weights and Measures Act 1985 requires the use of metric units for any regulated transaction, with the following exceptions—draught beer and cider, bottled milk and precious metals, where we still use the troy ounce. These are required to be sold in imperial units. In addition, the Units of Measurement Regulations 1986 list all the legal units available for any other purpose. The Weights and Measures Act applies to any unit or measurement in use for trade. This is intended to apply not just in the transaction itself but to any use in connection with, or with a view to, trade. That would already cover most advertisements or product descriptions for goods. I hope that noble Lords will be reassured by this. I am certainly very keen to avoid any possible confusion for consumers, businesses or enforcers. I am concerned that businesses might be confused by duplication of existing requirements, particularly if that were to result in reduced levels of compliance as businesses were uncertain about which set of rules they must comply with. Having a single set of requirements on units of measurement, as we currently do, all under the weights and measures framework, makes it easier for businesses to know where to look for the rules and how to comply with them.
Baroness Jolly
My Lords, on behalf of the team I thank the noble Baroness, Lady King of Bow, for her kind words at the outset.
The enhanced consumer measures will give enforcers of consumer law greater flexibility to get better outcomes for consumers. When there is a breach or potential breach of consumer law, the measures available to enforcers can be limited. Prosecutions in the criminal courts can lead to a fine or even imprisonment, while actions in the civil courts can stop the infringing conduct. However, neither option tends to lead to consumers getting their money back, nor does the person who has broken the law have to take positive steps to put right the damage they have caused.
The enhanced consumer measures will allow public enforcers to seek a range of innovative and positive measures in the civil courts, aimed at achieving one or more of three outcomes: redress for consumers who have suffered loss, increased business compliance with the law or more choice for consumers. Measures must be just, reasonable and proportionate. Once they have settled in, we expect the measures to lead to consumers getting around £12 million in redress annually. Although a business might be required to spend money in order to pay redress to consumers, to increase compliance or to provide information to consumers, a simple penalty payable to the enforcer or to the Treasury would not be appropriate.
Turning to the amendment, and to answer the points made by the noble Lord, Lord Harris, we have already committed to a post-implementation review of both the enhanced consumer measures and the changes we are making to trading standards powers in the Bill. Our impact assessments for both state that the policies will be reviewed three to five years after they come into force. In addition, when we introduce the power to extend the enhanced consumer measures to private enforcers, we want to see how the measures bed in, and the experience of public enforcers using them, before deciding whether the use of them should be extended. Clearly, when deciding whether or not to extend the use of the measures, a key consideration will be how often they have been used and the cost to trading standards of using them.
The enhanced consumer measures represent a real change in how public enforcers such as trading standards will approach enforcement. The measures will be innovative and far-reaching. We have already circulated draft guidance on using them to our implementation group for comment.
On the proposal to establish statutory minimum standards for trading standards officers, if not the service itself, local authority trading standards are required to have regard to the Regulators’ Code, which is a statutory code of good regulatory practice. This code makes it clear that regulators should ensure their officers have the necessary knowledge and skills to support those they regulate, and that regulatory activity should be proportionate and consistent. A post-implementation review of the code was undertaken in 2012, and, following a consultation in 2013, an updated and simplified code came into force in April 2014.
The Government have committed to monitor regulators’ published policies and standards to ensure that they are consistent with the principles in the code. There will be a post-implementation review of the revised code to check that it is operating as intended. In the mean time, the Better Regulation Delivery Office offers assistance to all relevant bodies to implement the provisions of the code. At a local level, we think that local authorities are best placed to determine their officers’ competence. They will have a better understanding of local priorities, taking into account new models of delivery or collaborative approaches with businesses and other neighbouring councils.
As I have already said, the Government greatly value the work of trading standards and that is why we have commissioned research on the impact and effect of trading standards on the economy, to build on the evidence base. The research will conclude in the autumn, and the outputs will inform future policy. I therefore ask the noble Baroness to withdraw the amendment.
Baroness King of Bow
My Lords, I thank the Minister for her reply and other noble Lords who have taken part in this short debate. My noble friend Baroness Crawley spoke powerfully about trading standards services as they teeter on the edge of sustainability. Anyone who has worked with them and followed their trajectory over recent spending reviews and spending rounds cannot help but feel that there is a bit of a chasm between what we are talking about in theory here—the laws that we want those trading standards officers to promote—and the powers and resources available to them to do so, not least because, as my noble friend pointed out, their numbers have been halved.
If we are on the brink of ending current services and giving up on proactive work, it does not seem realistic that they may be able to make use of any powers, which is another reason why we feel a review of this sort would be very helpful and important. My noble friend Lord Harris of Haringey gave me qualified support—thank you.
Baroness King of Bow
In moving Amendment 63AA, I shall speak also to Amendment 105J in the names of my noble friends Lady Hayter and Lord Stevenson. Amendment 63AA deals with the implementation group and is interesting, not least because during the Bill’s passage in the other place the shadow consumer rights Minister, Stella Creasy, spoke about the mythical implementation group because often in the other place the answer to every question raised was, “The implementation group will sort it out”.
What will the implementation group look at? It will look at the point of sale information and identify the best way to communicate and teach people about their rights. It will look at a range of ways to ensure that businesses and consumers know what the law is regarding the point of sale questions being asked. It will look at statutory rights, what they mean and how people will be told about them. It will also identify clear, understandable wording, not just how to tell people about their rights but the words used to describe those rights. It will also look at the point of redress. It will answer questions about the information given when someone complains about the goods, service or digital content. We also heard that the implementation group will look at the guidance given to trading standards; it will look at how this will be drafted for a wide range of organisations.
With that said it is clear that the implementation group is not simply an add-on to this legislation. It is integral to the way in which it will work. The Bill is a framework. As we know, most of the law is then implemented via statutory instruments and guidance. Unfortunately, Parliament too often thinks that its job is done at that point, but implementation is really the most important part. The implementation group will be working behind the scenes—for example, preparing businesses. Consumers can be empowered only to know what their rights are, and therefore we need the implementation group to succeed and its recommendations to have bite. The key work of the group relates to Part 1 of the Bill, improving business and consumer education on their new rights and obligations, as well as spending some time informing trading standards officers.
After all that, what do we know about this mythical, important, integral implementation group? It is an all-statutory group. So first, we do not actually know what it is doing. Secondly, without Amendment 105J its recommendations will have no teeth. We hope that the advice of the group would be taken by the Minister to turn into a code of conduct. There definitely should be a statutory code of conduct. We want the implementation group to succeed. I beg to move.
Baroness Jolly
My Lords, I thank the noble Baroness for highlighting both the work that we are doing on the implementation of the Bill and that this implementation is vital if the measures are to make the differences that we intend.
We have published our plans for implementation online, at GOV.UK, and we have written to all noble Lords about them. These plans have been drawn up in close co-operation with the experts on our implementation group. These are the people who know how this really works on the ground for business, consumers and enforcers. We intend the Consumer Rights Bill to come into force in October 2015. Work to inform businesses of the pending changes in the law will begin in earnest in April 2015. This will include the publication of guidance that is easy to understand and will be supported by the sterling work of trade associations and enforcers to educate and assist businesses.
Businesses will have six months to make any changes to processes and information to meet the requirements under the Bill. They will be able to see at a glance the key changes in the law. They will also easily be able to find more detailed guidance as and when they need it. The noble Baroness rightly emphasised the need for consumers to be aware of their rights, while other noble Lords expressed similar thoughts. As we have said many times, the Government believe that we must ensure that consumers understand their new rights and obligations. That is essential and I know that is something on which we can agree.
That is why we are working closely with relevant organisations, particularly consumer groups, to ensure that consumers have a basic awareness of their updated rights and that they know where to get advice on a specific problem with faulty goods, services and digital content. The primary source of this advice will be the excellent Citizens Advice website and helpline, but of course the work of other consumer groups will be vital and we will work with key organisations to get the message across.
Consumer Rights Bill
Debate between Baroness Jolly and Baroness King of Bow
Baroness King of Bow
My Lords, I support Amendment 51 tabled in the names of the noble Baroness, Lady Oppenheim-Barnes, and my noble friend Lord Whitty. My Amendments 48B and 50G were spoken to last Wednesday, but they were originally grouped with Amendment 51. I know that the Committee is pushed for time, so I will not repeat in detail the arguments that we had around point of sale. Suffice it to say that if consumers do not have clear and transparent information, their consumer rights are effectively undermined. That is the crux of the matter and it is the argument which has been made again now.
This is an amendment essentially to ban smoke and mirrors and to ensure that consumers actually get their rights in practice as well as in theory. The noble Baroness, Lady Oppenheim-Barnes, said how deeply held her feelings are on this matter, and she is quite right. We have to get the basics right. To my mind, this amendment will serve to do just that. Without the basics, consumers will not have their rights safeguarded. For those reasons, we are delighted to support this amendment.
Baroness Jolly
My Lords, as I said when we discussed point of sale information for goods and services in previous sessions, the Government believe that it is really important that consumers should feel confident about exercising their rights. Last Wednesday the noble Baroness, Lady King, reminded us that Martin Lewis from moneysavingexpert.com had stressed the importance of a simple and clear version of our consumer rights when he gave evidence to the BIS Select Committee on the Bill. We agree with him, which is why I am delighted that moneysavingexpert.com is one of the consumer organisations that is working with us on the high-level summary of consumer rights that the Minister and I have mentioned on a number of occasions. This summary covers our rights when we buy goods, services or digital content, and members of the implementation group are working to ensure that it is written in plain English.
In the debates relating to previous amendments concerning the requirement to provide consumer information at the point of sale or at the point of complaint, I set out the Government’s objections to requiring every single business providing goods, services and digital content to set out a consumer’s rights every time they make a purchase. Perhaps I may briefly reiterate. These were, first, that consumers are already faced with a lot of information at the point of sale, and I suspect that most of us are not going to take in information that is not immediately relevant to our purchase decision. Secondly, it is will be particularly irritating to be faced with an oral statement or handed a piece of paper setting out our rights every time we buy a newspaper in the corner shop or arrange by phone to have the dog walked—not to mention the burden this would place on the trader. Thirdly, it could cause significant confusion where the trader’s own policies were more generous than consumers’ statutory rights or where sectoral regulation of services requires specific remedies that the trader must offer.
My noble friend the Minister mentioned the concerns of a major retailer that a requirement to set out a consumer’s basic rights would completely undermine its core message. This was that a customer who is dissatisfied for any reason could bring the product back because it wanted to do what it and the customer thought was right in the circumstances, even if that went beyond what the law would require.
In answer to a point made by the noble Baroness, Lady Oppenheim-Barnes, the British Retail Consortium has said that it would happily join in providing information at the point of sale but does not support the mandatory provision of consumer information for reasons I have given. The BRC, the Federation of Small Businesses and the British Chambers of Commerce all oppose this too.
Fourthly, it would be perplexing for consumers to have to have their attention drawn to their full rights at every point in the complaints process even in circumstances where they have said what they want and the trader has immediately agreed.
On the point made by the noble Lord, Lord Blencathra, on consumers who are sold things over the telephone and have no written follow-up, the consumer has to be given a range of pre-contractual information under the Consumer Contracts Regulations 2013, so a situation in which a consumer does not know they are entering a contract should no longer arise, with effect from 2013. For all these reasons, we do not believe that requiring this information to be given to all consumers before they purchase goods or services or, indeed, afterwards, would achieve the best outcome for consumers or for businesses.
Consumer Rights Bill
Debate between Baroness Jolly and Baroness King of Bow(10 years, 2 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Baroness King of Bow (Lab)
I am very happy to be mistaken for my noble friend, not least because she has about 15 years more experience than me on this subject—well, maybe four. I beg to move Amendment 48A in the name of my noble friends Lady Hayter and Lord Stevenson. This group of amendments seeks to improve consumers’ awareness of their rights under the law. Amendment 48A relates to consumer rights regarding services. It stipulates that these rights should be made clear at the point of sale. Amendment 50E requires the trader to ensure that the consumer is aware of their rights when they initiate a complaints procedure. Amendment 51, in the name of the noble Baroness, Lady Oppenheim-Barnes, requires the suppliers of goods and services to tell consumers what their rights are in plain English. That is something we support.
Martin Lewis, from moneysavingexpert.com—I am sure you are all familiar with that organisation, as it is the UK’s biggest money and consumer website—spoke to the Public Bill Committee in the Commons and singled out what was, in his view, the one aim for the Bill above all others. He said:
“The most important thing I would like to say to you is that you need … to give people something very simple, which you could teach children in schools … that says, ‘These are your rights when dealing with a company.’ At the moment I am not quite sure you are there. You are nearer, but I am not quite sure you are there”.—[Official Report, Commons, Consumer Rights Bill Committee, 11/2/14; col. 56.]
These amendments would help to deliver the “most important thing” that Mr Lewis talked about. His warning was stark: if we do not make things simple and clear, we effectively disempower consumers and undermine their rights. He essentially said that we can give people all the rights in the world but if they are not empowered to use them, because the process is too complicated or the language too complex, then in practice we are not really giving them any rights at all. Naturally, putting things in plain English is an important prerequisite for this. That is what Amendment 51 would require, which is why we give it our support.
Amendments 48A and 50E are about letting people know what their rights are to start with. Amendment 48A relates to services. As we heard earlier from my noble friend Lady Drake, people have different rights when it comes to services. They are often far more hazy and confused about those rights than they are about their rights relating to goods. I wonder why the Government feel unable to strengthen the legislation in the way that these amendments suggest, which would sharpen the information given to consumers at the point of sale. Amendment 50E would ensure that consumers also have consistent information at the point of complaint and that their statutory rights were explained and articulated, instead of being a never-explained mantra that every consumer hears and virtually no consumer understands—except perhaps for those dealing with this Bill.
In summary, the amendments would help the Bill to fulfil its objective of giving consumers clear rights in regard to services—rights that were simple to understand and in plain English, and given at the point of sale and at the point of complaint.
Baroness Jolly (LD)
My Lords, as was said when we discussed point-of-sale information for goods last Monday, the Government believe that it is really important that consumers should feel confident about exercising their statutory rights and that businesses should know and fulfil their statutory responsibilities. That is why, a year ago, we set up an implementation group for the Bill. This is helping us to decide how to increase consumer and business knowledge about consumer rights. The group has consumer, business and enforcer representatives working with us on a co-ordinated approach to content, channels and timing of guidance, advice and publicity for the Bill.
As part of their work, members of the implementation group have been developing a high-level summary of consumers’ rights when they buy goods, services and digital content. The summary will also signpost consumers to the Citizens Advice helpline and website—both sources of more detailed guidance on specific issues. We are in the process of testing this model with businesses and on consumers. The response from business has been positive, provided that use of the wording is on a voluntary basis.
Turning to Amendments 48A, 50E and 51, for the reasons explained when we discussed Amendments 9, 13 and 25 last week, we do not believe that requiring this information to be given to all consumers before they purchase or receive any goods or services, or after they purchase services, would achieve the best outcome for them or for businesses. First, we do not think there is any evidence to support the argument that the point of sale is the best place to inform consumers of their rights or that it is an important part of the purchasing decision. Consumers are more likely to focus on their rights when they need to enforce them. Secondly, it is difficult to see that consumers would see the benefit of being reminded that services must be delivered with reasonable care and skill whenever they visited the hairdressers or the carwash. Are we really suggesting that a local window-cleaner should provide his customers with a written notice setting out their relevant statutory rights? That seems pretty burdensome for both the trader and the consumer.
Consumer Rights Bill
Debate between Baroness Jolly and Baroness King of Bow(10 years, 2 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Baroness King of Bow
My Lords, this amendment would provide further exemptions to the providers of digital content, freeing them from the need to guarantee the third-party software they use. I understand the argument put forward by the noble Lord, Lord Clement-Jones; namely, that the trader may not have a warranty from the third party, and I am sorry that my contribution will be a disappointment to him. It appears to me none the less that it would reduce consumer protection, but after all, this legislation is called the Consumer Rights Bill. Again, this is a question of balance. The key point is that if the trader benefits financially from the use of the third-party software, surely it is inappropriate to load the risk on to the consumer. It is the trader’s decision to buy and use third-party software, so if that trader is unsure of its quality, it must be a risk that it undertakes and consequently should be liable for, not the consumer. The consumer cannot control the trader’s relationship with its suppliers; third-party software is very much the responsibility of the trader, and therefore we cannot support the amendment.
As I have already mentioned, if a business is selling digital content for profit, it is up to that business to ensure that all elements of the final product are of a reasonable quality. I hope to hear that the Minister shares this view.
Baroness Jolly
My Lords, the Bill aims to create confident consumers who are more likely to try new products and new providers, and as such, help to drive growth and innovation. With this aim in mind, our position is that there should be no gaps in consumer protection for digital content. It is only right that when a consumer buys digital content they can expect it to be of satisfactory quality, fit for purpose and as described. If not, they can expect the fault to be put right. The concerns of traders who may find their ability to claim back costs from third-party providers limited by their business-to-business arrangements need to be balanced against the needs of consumers who should be able to shop with confidence. I understand that B2B relationships may be particularly complex in the area of digital content, but complex arrangements are not a defence against faulty digital content, and consumers should not be left without adequate protection.
I shall pick up on a point made by my noble friend Lord Clement-Jones, that it was not fair on SMEs since intermediaries may limit their liability in a B2B contract. I understand the problem that some smaller traders may lack bargaining power with larger companies, and that is why we have other protections in law such as the Unfair Contract Terms Act 1997. However, beyond that basic protection and other protections, such as the Sale of Goods Act, where appropriate, we believe it is important to allow businesses the freedom to make contracts with each other without state interference. My concern is the potential for this amendment to significantly undermine consumer protection, because it would seem to have such very broad implications.