Digital Markets, Competition and Consumers Bill

Debate between Earl of Lindsay and Baroness Crawley

Report stage
Wednesday 13th March 2024 Lords Chamber

[The Earl of Lindsay (Con)]

My Lords, I shall speak to Amendments 99 to 101 and I declare an interest as president of the Chartered Trading Standards Institute. I am pleased that also sponsoring these amendments are my predecessor as president of the institute, the noble Baroness, Lady Crawley, and the noble Baroness, Lady Bakewell of Hardington Mandeville, a former leader of Somerset County Council.

Before speaking to these amendments, I thank my noble friend for using the Bill to extend online interface order provisions to trading standards, an issue we raised in Committee in amendments moved very ably by the noble Lords, Lord Clement-Jones and Lord Bassam of Brighton. I thank my noble friend also for the correspondence and discussion with him and his officials since Committee about the ongoing concerns that have prompted our amendments in this group and the next.

Amendments 99 and 100 would enable local authority trading standards officers to exercise their powers throughout the United Kingdom. Currently, the legislation implies that officers in England and Wales can exercise powers only in England and Wales but not in Scotland, and vice versa, but rogue traders operate across our internal borders and the legislation and powers that underpin trading standards and consumer protection should recognise this cold, hard reality. We fully respect the different legal jurisdictions involved. The current restriction, however, relates to the exercise of powers, not to the ability to take legal proceedings, and the legislation applies equally in the devolved nations. The restriction makes enforcement more challenging if, for example, a trader based in Scotland commits an offence in England, as trading standards officers can face legal challenges if they request documents they would be entitled to were it not for this anomaly. I should add that trading standards officers across Scotland, England and Wales support this amendment, as it would allow them to conduct investigations throughout the United Kingdom in a more efficient and cost-effective manner.

Amendment 101 would enable trading standards to access information by letter, rather than being restricted to having to exercise a power of entry to access that same information. As the Bill is currently drafted, trading standards need to visit the business in person to obtain paperwork to use as evidence in criminal proceedings. This amendment would ease the pressure on businesses, as they will then have time to gather and send any documents requested, and to seek legal advice, rather than face a trading standards officer just turning up at their business address without notice and seizing documents.

This proposal is therefore in the interests of both businesses and enforcers, and we believe that it does not breach the individual’s human rights or cause any greater risk of self-incrimination. It also reflects the financial difficulties that local authorities are facing, not least those that have declared bankruptcy. There are clear cost implications if an enforcement officer is required to drive half way across the country to obtain documents. Cases can be dropped if there is insufficient council budget for such travel. The documents I am referring to are those that the officer has the right to request and seize when on the business premises, and in those circumstances a trader would have to provide them immediately.

We believe that the ability to make a written request for documents that are held by the business and are required as evidence would substantially reduce costs to the local authority, reduce pressure on businesses and allow those breaching the legislation to be brought to justice more efficiently and cost effectively.

[Baroness Crawley (Lab)]

My Lords, I support the noble Earl, Lord Lindsay, and I wish to speak briefly to Amendments 99 to 101 in his name, mine and that of the noble Baroness, Lady Bakewell of Hardington Mandeville. In doing so, I apologise for not being able to speak at Second Reading or in Committee. I sincerely thank my noble friend on the Front Bench and the noble Lords on the Lib Dem Front Bench for promoting and supporting our amendments in our absence. I also thank the Minister for being so very generous with his time in meeting us between Committee and Report, and for listening so intently to trading standards officers who do this work on the ground, day after day.

The effect of Amendments 99 and 100 would be to give new powers to trading standards officers to operate across national borders when necessary. Current legislation does not make it clear that trading standards officers in England and Wales can exercise their powers across the border with Scotland, even though this is an area of reserved powers. In fact, the current legislation implies that this cross-border enforcement activity is not permitted. It would be helpful if the Minister, in his reply, could make clear the exercise of powers across borders, so that it is at least on the record for trading standards professionals.

At a post-Brexit time when the UK is building up its new internal market in goods and services, and needs corresponding consumer protection, this current questionable restriction on pursuing officers makes it very difficult to enforce legislation where a rogue trader offends across a national border. I am sure the Minister will agree that, for the success of the new internal market, trading standards officers should be able to pursue and enforce right across the United Kingdom.

Amendment 101, to which I have also added my name, would be an opportunity to finally update trading standards officers’ powers of entry, as the noble Earl said. At present, trading standards officers are required to exercise physical powers of entry to premises before information access or the seizing of documents, which may well be needed in criminal proceedings. The amendment, which we support, would have the effect of changing their information-gathering powers to enable documents to be requested in writing and without the need for physical entry, and for those documents to still be used in criminal proceedings.

This would be a lot less hassle for legitimate businesses and traders, and would give them more time to source the required documents. For the small, overstretched band of trading standards officers, the requirement to exercise physical powers of entry across the country, in order to seize documents that they may need to use in criminal proceedings, is not cost effective for their cash-strapped local authorities. Rogue traders are not constrained by local authority boundaries, and trading standards officers may have to travel long distances to obtain documents physically. Their local authorities may not be able to finance such activity, and the case would therefore be dropped. I ask the Minister to think again on this matter, to sustain consumer confidence in the consumer enforcement powers of a UK-wide trading standards profession.