Digital Economy Bill

Debate between Lord Fowler and Baroness Janke

Committee: 3rd sitting (Hansard): House of Lords
Monday 6th February 2017 Lords Chamber

[The Lord Speaker (Lord Fowler)]

My Lords, it might perhaps be for the convenience of the Committee if we had a short pause so that those not engaged in the next business may leave the Chamber.

[Baroness Janke (LD)]

My Lords, I shall speak to Amendments 75 and 76, which deal with the sale of counterfeit electrical goods on the internet. There is growing concern about this practice, which has increased massively over the past 20 years—by 10,000%—and is continuing to increase at around 15% a year. The industry of counterfeit goods is worth something like £1.3 billion, according to the Electrical Safety Council, and 64% of these goods are sold on the internet. People believe that they are buying reputable brands, as they are dealing with an online retailer that is well known and they assume that the goods are genuine.

The fact that there are so many accidents and so many problems with these goods is another reason that we are bringing these amendments today, as we see this Bill as an opportunity to do something about this practice. The goods are often dangerous. The Electrical Safety Council calculates that something like 7,000 domestic fires are caused by faulty goods, and many of these are counterfeit goods. The practice of selling these goods undermines genuine brands and causes great difficulty within the industry. Faulty goods can also cause great harm directly to individual people.

These amendments seek to give some responsibility to online retailers to report to trading standards and the police goods that they know to be counterfeit. The second amendment requires the Government to provide a review and report on the extent of this practice as well as its impact on the economy. I beg to move.