Digital Markets, Competition and Consumers Bill

Debate between Lord Offord of Garvel and Lord Holmes of Richmond

Committee stage
Wednesday 7th February 2024 Grand Committee

[Lord Offord of Garvel (Con)]

My Lords, I am delighted to speak to this group of amendments, and I thank my noble friend Lord Holmes, the noble Lord, Lord Clement-Jones, and the noble Baroness, Lady Jones, for their amendments. I will first briefly address the government amendments, and the other amendments in my closing remarks.

Amendment 195 is a minor and technical amendment which aims to clarify independence requirements for trustees overseeing funds in a consumer savings scheme, strengthening safeguards against potential conflicts of interest. Trustees must have no association with the trader or interests in the trader’s assets, ensuring that funds are controlled for the benefit of savers and independently of the trader.

This measure is essential to safeguard consumer funds against insolvency and ensure that they are used for their intended purpose. I hope that noble Lords will accept this amendment. I look forward to addressing in closing any questions or points that they may have about the amendments in this group. I beg to move.

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to follow my noble friend, if not for the fact that it seems we are going backwards and forwards at the same time, which is always a good state be in. As this is the first time I have spoken on day six in Committee, I restate my technology interests, as set out in the register, as adviser to Boston Ltd.

My two amendments in this group are concerned with artificial intelligence. It is a truism, self-evident and barely in need of stating, that artificial intelligence is already impacting many aspects of our lives—as citizens, as consumers, as businesses and as a country—so it would seem timely to review all the relevant legislation to assess its competence to deal with the challenges, opportunities and risks that AI presents for us in all those roles and capacities. I shall say more on that next month.

Today, within the scope of this Bill, Amendment 199 suggests that all legislation concerned with consumer protection be reviewed to assess its competence to deal with the challenges, opportunities and risks inherent in artificial intelligence. It is clear that a number of the concepts and provisions within consumer protection legislation and regulation will be applicable and competent to deal with AI, but there is a huge gulf between what is currently set out in statute and what we require when it comes to making the best of what we could call this future now. I shall give just one example: if we consider how algorithms are set up simultaneously to push voraciously certain content while holding back other content, it is very difficult to see how consumer protection legislation is set up to deal with that challenge. That is but one specific example.

Amendment 200 goes to the question of consumer protection and the need to label all products and services where AI has been used or is built into that product or service so that the customer can know that and determine whether she or he wishes to avail herself or himself of that product or service. In no sense would this amendment require great burdens to be placed on business in bureaucracy, administration or cost. In many ways, this is yet another example of “set AI to solve an AI problem”, with human in the loop and human oversight always present.

I suggest that these two amendments, taken together, would enable the Bill to speak positively and in a timely manner on the opportunities, risks and threats to all of us, and to try to get the optimal deployment of AI in this context when it comes to consumer protection. I look forward to the Minister’s response.

Electronic Trade Documents Act 2023

Debate between Lord Offord of Garvel and Lord Holmes of Richmond

Thursday 14th September 2023 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare my financial services and technology interests as set out in the register.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

The Electronic Trade Documents Act will provide an economic boost estimated at just over £1 billion over a decade, substantially reducing paper use. We are the first G7 country to put digital and paper trade documents on an equal footing. Given the international prominence of English law, this will kick-start digitalisation globally. We advocate similar change by trading partners. We will support businesses through international trade advisers, trade and investment hubs and initiatives promoting digitalisation, including the Centre for Digital Trade and Innovation.

[Lord Holmes of Richmond (Con)]

My Lords, does my noble friend agree that the Electronic Trade Documents Act offers us the potential of combining our common-law tradition with our expertise in new technologies such as blockchain and our excellent financial services ecosystem? Does he agree that we must work to ensure that everybody in the business department communicates through every channel—particularly to SMEs in the UK—the opportunity that exists through this Act and, similarly, that all our missions overseas communicate to companies and politicians around the world to enable them to see the benefits of passing similar legislation? As my noble friend the Minister knows, it takes two to trade.

[Lord Offord of Garvel (Con)]

I thank my noble friend for those comments and questions. This is a quite remarkable Act. In fact, it is the only Act of Parliament that I have read from beginning to end. It is only four pages long and 1,500 words; I recommend it for its brevity and its conciseness. It simply does one thing, which is to take the architecture of 300-plus years of mercantile trading which has been done in paper form and translate that into digital to have the same legal impact. The onus is now on the Department for Business and Trade to communicate this to our SMEs, as my noble friend indicated. To that end, we are using international trade advisers and the International Chamber of Commerce, and we have set up the Centre for Digital Trade and Innovation at Teesside University. A lot of work will now be done to raise awareness of this, which will be for the great benefit of our trade.