Product Regulation and Metrology Bill [Lords] Debate

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Department: Department for Business and Trade
Clive Jones Portrait Clive Jones (Wokingham) (LD)
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I declare an interest having spent 40 years in the toy industry and, in another life, having been the chair and the president of the British Toy & Hobby Association. It was a wonderful job—the second-best job. The best job is being the first ever Liberal Democrat MP for Wokingham.

Graham Stuart Portrait Graham Stuart
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And the last.

Clive Jones Portrait Clive Jones
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I doubt that very much.

Nearly a decade since the Brexit referendum, this House is still grappling with what it means to be outside of the European Union. Away from the big headlines about trade deals and newly erected borders, the technical nitty-gritty of product safety and metrology is ever more important now that we must decide what we want our policies to be in this area. Our original framework, derived from EU law, must now keep up with fast-evolving technologies and consumer behaviours. Technological changes in the 21st century may have created new opportunities, but they have also left us exposed to new risks, such as AI, battery hazards and e-bike fires.

Our online marketplaces and the complex digital commerce that facilitates them have reduced barriers to small and medium-sized enterprises sharing their products across the UK and the world, but the internet is still a wild west in many ways, leaving small businesses and consumers exposed. That is why the Liberal Democrats welcome aspects of this Bill. We fully understand and support the need to update the regulatory framework for the UK marketplace to give businesses and consumers confidence in their products. We welcome in principle the powers in the Bill to put new responsibilities on online marketplaces throughout the supply chain, and we support enhanced consumer protection for products that pose a safety risk.

The product regulations falling in scope of this Bill will have an impact on our country’s trade policy, and the Liberal Democrats are clear when it comes to trade: we believe the Government must pull the most powerful and readily available lever at their disposal to kickstart economic growth by urgently launching negotiations for a new UK-EU customs union. That would create jobs, boost our public finances and reverse much of the damage inflicted on our economy by the previous Conservative Government’s terrible trade deal with Europe. I take this opportunity to urge the Government to move in that direction and to commit that, as part of these trade negotiations, they will use the provisions in the Bill to facilitate a new customs union, which could have such a transformative effect on our economy.

Jonathan Reynolds Portrait Jonathan Reynolds
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I am really grateful to the hon. Gentleman for engaging with the issues about product safety and consumer protection in the Bill, and he is making a serious speech in relation to them.

First, on the point of the customs union, which was skilfully woven into his speech, that would preclude us from reaching any arrangements with the United States, India, the Gulf states or other countries. For my money, if we wish to be part of something without a say in how it would affect our trade policy, that would be a very difficult position to take. I will come back to the references made by Conservative MPs, who often feel like they are fighting the old, last war. They cannot get past it—

Jonathan Reynolds Portrait Jonathan Reynolds
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I will, Madam Deputy Speaker. In relation to the number of references made to the EU in this Bill, the EU is explicitly referenced simply because UK product regulations are derived from a lot of EU regulations. We have to reference that when looking to the future, particularly when we recognise some of those European standards, but it is wrong to simply look at those references and try to make them out to be something they are not.

Clive Jones Portrait Clive Jones
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Thank you for your intervention, Secretary of State. You are right—

Clive Jones Portrait Clive Jones
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Sorry. The Secretary of State is right when he talks about us needing to keep up with EU regulations. We definitely need to do that.

Despite the potential in this Bill, unfortunately it contains very little actual policy. It relies far too heavily on secondary legislation, which limits opportunities for parliamentary scrutiny and provides little clarity on what the Government actually intend to do with the powers they are giving themselves. The Bill hurls us into a hokey-cokey trade policy in which, at Ministers’ political whims, we can stick ourselves into aligning with the EU just as easily as we can throw ourselves out of it all over again if another Government decided they wanted to do that. It will also hurt business confidence, because the underlying regulations of our country can be easily altered without the appropriate levels of scrutiny from Parliament.

Taking a step back from the issue of EU alignment, this principle can apply across any of the areas that this Bill seeks to regulate. It is developing opaque mechanisms on which the Government expect us to trust them to do better. However, Government Members must contend with the fact that they will not be there forever. All the potentially positive things they could do with this legislation could be reversed or made worse by a different Government.

It is at this point that I must recognise the excellent work of the Liberal Democrat peers. For example, a Lib Dem lord introduced an amendment that protected the use of the unique British pint measurement, ensuring that the Bill could not prevent or restrict its use for beer, cider, or milk in the iconic pint bottle. Liberal Democrat peers pressed the Government to introduce stronger protections against lithium-ion batteries, and a Liberal Democrat peer also ensured that the Government included an important amendment that requires the Secretary of State to publish a statement setting out how the Government expect to identify and assess product safety risks before legislation is laid. Put simply, this will ensure greater scrutiny of regulations that are designed to make products safe.

Despite those improvements, the Bill is still ultimately a skeleton framework that shifts legislative authority from Parliament to the Executive without the necessary level of scrutiny. Many great Ministers agree with me that skeleton Bills are the wrong way to deliver legislation. In fact, in 2023—a mere two years ago—one shadow Minister stated that such Bills were not

“a model example of how Parliament would like to see legislation brought forward”,

and that we should be minimising

“the use of delegated powers where possible”.—[Official Report, 18 January 2023; Vol. 726, c. 409.]

I agree with that then shadow Minister, the hon. Member for Ellesmere Port and Bromborough (Justin Madders), who is now sitting next to the Secretary of State who has brought forward today’s Bill. I am sorry that he does not agree with himself any more.

I also note the assurances that the Government gave to my Liberal Democrat colleagues in the other place that a process for editing statutory instruments will be brought forward. We will be pushing for details of that pre-legislative consultation as the Bill progresses through the Commons. Any Government will say that they are acting in our best interests, but all of the things that this Bill could do—such as enhance consumer safety, reduce trade barriers and build an economy fit for the future—could be undone at the stroke of a pen. That is a pen that Parliament should hold, not Ministers.

Sarah Olney Portrait Sarah Olney (Richmond Park) (LD)
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The use of hazardous chemical flame retardants in domestic furniture has been criticised by the Association of Master Upholsterers and Soft Furnishers and in a 2019 Environmental Audit Committee report, because those chemicals have been shown to cause more toxic smoke, increase the production of carbon monoxide and hydrogen cyanide and increase the prevalence of health conditions, including developmental disorders, breathing difficulties and reproductive disorders. As this Bill would provide the Government with more powers to act on that issue, does my hon. Friend agree that Ministers should outline how the Government plan to address the dangers associated with CFRs?

Clive Jones Portrait Clive Jones
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I agree with my hon. Friend, and I hope that Ministers will address her question—if they heard it. The Bill makes it possible for the Government to use those new powers, and that would be a good place for them to start.

The Minister in the other place stated that this Government are not looking to reduce consumer protections. However, what measures in this Bill make sure that parliamentary scrutiny cannot be bypassed to weaken those protections? The skeletal nature of the Bill also makes clear what is missing—the very heart of our changing economy is nowhere to be seen.

Richard Holden Portrait Mr Holden
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Will the hon. Gentleman give way?

Clive Jones Portrait Clive Jones
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Can I just carry on a bit? Thanks.

Online marketplaces are rapidly expanding in number and popularity, competing with high streets across the nation, but unfortunately, there is no level playing field on which those two competitors can battle it out for consumers’ cash. That is what the Bill should be addressing, because our high streets and our small businesses must contend with regulations that online marketplaces are not equally liable to. That is not a level playing field. For example, unsafe products are flooding online marketplaces. A study by Which? revealed that 90% of toys purchased from Amazon, eBay, AliExpress and Temu were illegal due to choking and strangulation hazards. Another study from the British Toy and Hobby Association found that 85% of toys from online marketplaces were unsafe, with 8% also illegal due to missing warnings. Do we want that situation to continue?

Sammy Wilson Portrait Sammy Wilson
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I note that the hon. Member has described many of these toys as “illegal”. In other words, the law is there already. This Bill is therefore not necessary to deal with children choking on toys and all the other things he has outlined. The law is already there; the question is, do we actually implement the law?

Clive Jones Portrait Clive Jones
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The law needs to be tightened up. We definitely need to be taking a lot more interest in the unsafe products that online companies are selling.

Do we want to allow unsafe toys to be sold to our precious children by some faceless online operation through an online market? I am sure the answer is no, but the Bill as it is written fails to address that. The problem is not just limited to toys, but extends to heaters, phone chargers and batteries. The Government have signalled an ambition to bring online marketplace liability in line with more traditional models of retail, but an ambition can be easily reversed by a different Government without parliamentary oversight. Without the measure being explicitly put into the Bill, consumers and the high street are not receiving the guarantees they deserve.

This is a serious issue for children and personal safety, and we therefore need explicit guarantees of minimum duties for online marketplaces in the Bill. What is the Minister’s view on whether a duty to notify consumers who have been sold unsafe or illegal products should be placed on online marketplaces? Such a duty could enhance consumers’ rights to seek a refund of the purchase price. Will a requirement to verify the identity and activities of sellers be established? If it is a yes to any of those questions, the Minister should do the right thing and amend the Bill so that those guarantees are enshrined in primary legislation.

I could go on. The Bill requires a tighter definition of an online marketplace to ensure that there are no loopholes for platforms to avoid appropriate regulations. That is especially the case for platforms that do not exist solely as an online marketplace, such as TikTok Shop and Facebook Marketplace.

Finally, the Bill does not make explicit reference to e-bikes, e-scooters or lithium-ion battery safety, despite safety being one of the explicit aims of the Bill. E-bike and e-scooter battery fires pose a uniquely high risk to consumers, with the London Fire Brigade estimating that it attends a fire incident caused by one of these devices once every two days. There need to be stronger regulations on these things. Can the Minister explain why they are not included in the Bill?

--- Later in debate ---
Justin Madders Portrait Justin Madders
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Metrologist. He may well be on the Bill Committee, because he has definitely talked his way on to it with his insight into this issue. My hon. Friend the Member for Birmingham Northfield (Laurence Turner) almost matched him in terms of technical specificity, and his historical knowledge was also very important. He has just finished sitting on a Bill Committee with me, but he is talking his way on to this one as well—perhaps I should not say that, because it might encourage colleagues not to speak in future debates.

My hon. Friend the Member for Bathgate and Linlithgow (Kirsteen Sullivan) and the Liberal Democrat spokesperson, the hon. Member for Wokingham (Clive Jones), were among a number of Members who talked about the issue of e-bikes, which is a real concern. I am sure the whole House has been moved by the tragic cases of e-bike fires that we too often hear about. My right hon. Friend the Secretary of State referred to the tragic death of Sofia Duarte. I met her mother last year to talk about what we can do through this Bill to prevent such tragedies from happening again.

In the wake of the increasing number of fires associated with e-bikes and lithium-ion batteries, there have been calls from businesses, trade associations, consumer groups and parliamentarians to tighten up the law. This legislation will allow us to ensure that the UK’s product safety framework can keep up with technological developments, including on e-bikes. The powers in the Bill will allow us to update regulations to ensure the best protections for consumers and consistency with the majority of reputable retailers.

The Government are currently considering how best to use the powers in the Bill to regulate these products in an efficient and proportionate way, in particular to ensure that products that can pose a greater risk, such as lithium-ion batteries and e-bikes and e-scooters, are safe. That includes bringing forward powers in the Bill to better define online marketplaces and confer additional duties on them to help stop the sale of unsafe products, including converter kits. As my hon. Friend the Member for Worsley and Eccles (Michael Wheeler) pointed out, this is a fast-moving environment, and the Bill will give us the flexibility to tackle that.

Clive Jones Portrait Clive Jones
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Does the Minister agree that if a UK manufacturer wants to produce a product for the UK market, it should produce it to UK regulations, and if it wants to export it to Europe, it is sensible to produce that product to EU regulations, which will open up a massive market on our doorstep? Keeping up with EU regulations will generally be good for the British business economy and help economic growth.

Justin Madders Portrait Justin Madders
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The Liberal Democrat spokesperson tempts me to set out a statement of policy, which the Bill is not intended to do. We want to give ourselves maximum flexibility in our ability to deal with issues as they arise. He talked in his speech about online marketplaces, and my hon. Friend the Member for Bury St Edmunds and Stowmarket (Peter Prinsley) talked about unsafe toys and button batteries, citing the fact that investigations have discovered that up to 90% of products purchased in online marketplaces are unsafe. Because we recognise that online marketplaces are in desperate need of regulation, the Bill will give us powers to clarify and modernise responsibilities for online marketplaces in a flexible and proportionate way, to protect consumers and create a fair playing field for law-abiding businesses. It will enable the Government to modernise the responsibilities of online supply chain actors.

While the growth of e-commerce has provided consumers with greater choice and convenience, it cannot be at the expense of consumer safety. We will continue to engage with consumer groups, businesses and online marketplaces in the development of specific online marketplace requirements to ensure that they are proportionate and to mitigate any costs to consumers. I can also confirm that it is the intention of the Government to consult on the duties for online marketplaces soon after Royal Assent and to bring forward subsequent regulations as soon as is practically possible.

My hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) spoke with his customary passion about the ceramics industry in the Potteries. I acknowledge his ideas for protecting the industry. I am not sure whether this Bill is the right vehicle for his suggestion, but I will take it away and come back to him.

It is probably worth talking about the issue that seemed to vex Opposition Members rather a lot, which is whether this Bill is in some way a reset to EU laws by the back door. It is about domestic regulation and we are not rejoining the EU by the back door. The Bill is about giving us flexibility to ensure product regulation, now and in the future, that is tailored to the needs of the UK. Of course, there will be some instances when we will want to take a similar approach to the EU, but there will be other times when we will want to take our own approach. Those decisions will be taken on a case-by-case basis in the best interests of UK businesses and consumers.

As my hon. Friend the Member for Walthamstow (Ms Creasy) said, the Retained EU Law (Revocation and Reform) Act 2023 gave significant powers to the Executive, and the Liberal Democrat spokesperson, the hon. Member for Wokingham, quoted me on that Act. It reformed 7,000 regulations, ranging across every function of society. Its regulations were far broader than those proposed in this Bill and the Delegated Powers and Regulatory Reform Select Committee called it “hyper-skeletal”, which is some way beyond the criticisms it levelled against this Bill.

Turning to the reasoned amendment tabled by the official Opposition, it is worth restating that the Bill is not about rejoining the EU. David Cameron commented that he wanted the Conservative party to

“stop banging on about Europe”,

but there seems to be some way to go before his words reach fruition, despite the fact that we left five years ago. The Bill gives us the necessary powers to ensure public regulation, now and in the future, meets the interests of the UK. The powers set out in the Bill will be used solely and exclusively in the best interests of UK businesses and consumers.

I recognise that the House of Lords Delegated Powers and Regulatory Reform Select Committee raised concerns about this being a skeleton Bill, but the Government have considered those concerns and other representations made by Members in the other place. Our existing product regulations are necessary to keep consumers safe, and to provide clarity and a level playing field for businesses. They extend to many thousands of pages and cover a huge amount of technical detail. As the noble and learned Lord Pannick said in the other place,

“the practical reality is that technical regulations of the breadth and complexity that will be produced cannot sensibly be enacted by primary legislation.”

He went on to say that if we are required to use primary legislation every time we wanted to make a regulation on product safety, there would be

“little, if any, time for anything else.”—[Official Report, House of Lords, 26 February 2025; Vol. 843, c. 1716.]

Conservative Members seem to have forgotten that since the Consumer Protection Act 1987, Governments of all stripes have recognised the need to make product safety regulations by secondary legislation. Since 1987, the Conservatives have been in power for 24 years, so they had more than enough time to find another way of dealing with product safety, but they did not choose to do that. We are taking a pragmatic approach. We have taken notice of some of the concerns raised about the powers of the Bill: we have removed a number of Henry VIII powers, introduced a consultation requirement, added additional affirmative resolution procedures and published a code of conduct that sets out the controls that we will have to ensure regulations are proportionate and evidence based. I am grateful to Members of the other place for setting out some of their concerns.

As the shadow Minister, the hon. Member for West Worcestershire (Dame Harriett Baldwin), pointed out, the Conservatives did not introduce the Bill in the last Parliament; I am happy to confirm that that was the case. That shows that there was a gap in the law that needed filling and the Conservatives failed to act on it.

Some of the important consumer groups in this country, such as Which?, recognised that action was needed. Sue Davies, head of consumer rights, protections and food policy said:

“It’s encouraging that the government is prioritising a Bill that should address the huge gap in consumer protections which allows online marketplaces to facilitate the sale of unsafe and illegal products without facing repercussions.”

If Members vote for the reasoned amendment, we will not be having any of those protections. I do not think any responsible party would move an amendment along those lines.

This Government are never going to compromise on safety. The Bill is essential to strengthening the rules and regulations needed to protect consumers, businesses and the public. I therefore commend the Bill to the House.

Question put, That the amendment be made.