Consumer Rights Bill

Baroness Jolly Excerpts

Wednesday 22nd October 2014 Grand Committee

[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.