Product Regulation and Metrology Bill [HL]

Lord Lucas Excerpts

2nd reading
Tuesday 8th October 2024 Lords Chamber

[Lord Lucas (Con)]

My Lords, I have a great deal of sympathy with the points made from the Front Bench by my noble friend Lord Sandhurst. I do not like a Henry VIII Bill in this form. I was glad that we killed the Schools Bill in the last Parliament. I very much hope that we, on this side of the House, will be able to collaborate to make sure that either we are shown the draft regulations before we get to Committee or that we send the Bill to the other place with a suitably large number of amendments, so that if, when the regulations finally emerge, we find that they pong, we can ping them back.

This Bill sets out to protect consumers from dubious and dangerous goods. I join with the noble Lord, Lord Foster of Bath, in welcoming the Bill from that point of view. In Committee, I want to explore how it could be extended to make sure that VAT is paid on those goods. That is both to pick up the £1 billion or £2 billion a year that we are failing to collect at the moment, and because that kind of attention and positive cash flow would really help reinforce the consumer safety purposes of this Bill.

In what follows, I will rely extensively on Richard Allen’s 20 years of battling to get HMRC to collect the VAT due on imports into this country—a battle that has yet to crowned with full success, though there have been some useful victories. Online retail is just mail order. It is the same business as Pryce Pryce-Jones invented in 1861 and the regulations for dealing with it really date in concept from that era. They have not been updated to address current practices. This has led to a series of past and current abuses.

The abuse of de minimis import tax exemptions is now a global concern. Companies like Shein and Temu have legitimately exploited these outdated exemptions and flooded Asia, Europe and America with low-value goods, assisted by generous Chinese export tax rebates and subsidised international postage rates, overseen by a secretive Universal Postal Union treaty. It appears to me that the business models of those two companies and others are entirely based on the tax that does not get paid. I suspect that, if we collected tax properly, those companies would not exist.

In April 2017, the National Audit Office published its report Investigation into Overseas Sellers Failing to Charge VAT on Online Sales. This highlighted abuse by Chinese retailers who ship goods into UK warehouses with misdeclared import values and then sell them on Amazon and eBay, while not accounting for VAT on the sales. HMRC’s response was ineffective. As can easily be seen by placing test purchases, those ignoring the UK’s obligation to register for VAT can sell goods to UK customers at a distance and send them to the UK in the certain knowledge that, if they are below £135 in declared—not necessarily actual—value, no VAT assessment will be made at the border and the goods will be delivered to the UK customer promptly. That effectively means that these goods can be sold VAT free, which hugely undercuts any legitimate UK business trying to compete. All the business that could be being done in the UK, with the VAT and employment taxes that would result, shifts to these large overseas enterprises.

Large shipments of goods have been sent to the UK individually packaged as consignments of less than £135 in value. Under the new bulk import reduced dataset systems, entire container loads of goods can be declared on a spreadsheet. Undervaluation is hard to detect, and bulk shipments of low-value consignments will not attract VAT or duty if each package is addressed to an individual in the UK and valued at less than £135. Large consignments of goods are thus split into hundreds of smaller consignments and addressed to fake individuals or one of the many hundreds of thousands of mysterious Chinese companies that have been set up at Companies House. Once the goods have cleared customs, these bulk consignments are broken down and the goods are sent to warehouses, from where they are sold on eBay, Amazon or elsewhere. Once the goods are in a distribution warehouse, it is virtually impossible for the customs authorities to determine who is the beneficial owner.

I will outline some simple solutions to these problems. First, make online marketplaces collect VAT on all sales, whether the sellers are established in the UK or not. In the case of those using online marketplaces, as opposed to selling direct, this would greatly simplify collection for the seller and tax authorities and remove the need to determine where the seller is established. As the noble Lord, Lord Foster of Bath, correctly pointed out, in any event, under the Bill, we need to look at how business is conducted in online marketplaces to make sure that the products reaching our consumers are safe. It is not much extra to make sure that the tax has been paid in the correct way. As I said, this would generate a large flow of income that would put a broad smile on the Treasury’s face and make it happy to finance the enforcement effort that, as others have said, will be needed to make the Bill succeed.

Secondly, make any non-resident seller who applies for a UK company or VAT number appoint a VAT representative in the UK who is responsible for paying import tax debts should the seller abscond. Clause 2(2)(k) addresses exactly that for product quality questions: it asks for a UK representative who we can go after if something is wrong with the product, so that it gets put right. In Committee, I will certainly look to make sure that this representative is a person of substance who, faced with substantial fines for exploding batteries— I am glad to see that the noble Baroness, Lady Brinton, is seated on a wheelchair with what looks like lead acid ones—can pay the substantial damages involved. These representatives need to be real people.

Thirdly, make customs brokers responsible for the correct value declaration of goods that they import for their clients, for the safety of those goods and for the payment of any VAT and duty. These two things run together: if you are in the business of importing goods, you will, under the Bill, have to take responsibility for their safety. We can run the VAT in alongside that.

Fourthly, legislate so that all imported goods held in UK warehouses are clearly marked with the name of the beneficial owner. We are asking for products to be properly marked in the Bill. Who is the beneficial owner? Who is the representative whom we can go after if the products are defective or if the VAT has not been paid? We need that sort of information to be clearly specified.

Fifthly, abolish the subsidy enjoyed by Chinese sellers, enabled by the Universal Postal Union treaty. I suspect that will be outside the scope of the Bill, however much I may smile at the Public Bill Office.

Lastly, increase the cost of unrealistically cheap imports, whether through increased duty, enforced partnership with a UK company, the extension of duty to more classes of goods or the application of fixed fees for clearance. Other countries faced with the same challenges have adopted measures like these. VAT has recently been imposed on all low-value imports by South Africa, and a similar measure is being considered in America. In India, Shein has been forced into partnership with an Indian company, ensuring that value is added, to the benefit of the Indian economy.

If we do this for the sake of tax, we will make it easier to ensure safety too. To come back to what the noble Lord, Lord Foster of Bath, said, we will have a way of affording enforcement. In any event, part of the Bill should be an ability to charge for the certification work we do on product safety. This should not happen entirely at the cost of us and our Government; we ought to be able to put a charge on the products. Again, that would ride nicely alongside VAT.

Product Regulation and Metrology Bill [HL]

Lord Lucas Excerpts

Committee stage
Wednesday 20th November 2024 Grand Committee

[Lord Fox (LD)]

If they find themselves in the same Division Lobby, but that is rather unlikely.

For this reason—the reason that I spoke of some time ago—I am proposing Amendment 113, which seeks to remove Clause 9(4) from the Bill. In the view of the committee and of your Lordships, this is the main offending clause, as it essentially grants Ministers unlimited powers. That is why we are proposing that amendment.

Amendment 133 harks back to an amendment for which many of the Minister’s colleagues and of those on these Benches voted during the passage of the Retained EU Law (Revocation and Reform) Bill, as it is very similar to an amendment that was tabled then. It is relatively self-explanatory, and it was explained even better by the noble Lord, Lord Anderson. I suggest that it imports some sensible consultation into the secondary legislation process without overburdening that process.

That may be the Minister’s response. He may say that this is bureaucratic and a lengthy process, to which I would say, to some extent, “So what?” This legislation does not have to be a breathless process; it is supposed to get it right. Many of your Lordships will have witnessed statutory instruments that come back to correct previous statutory instruments. I know of one case when we got into three or possibly four statutory instruments before we were presented with something that was acceptable. A bit of time, consultation and reflection gives us a chance to make regulation that is better and achieves what is intended.

I do not think this is an overwhelming process; it is about careful, purposeful regulation and proper consultation during that process. To an extent, that goes some way to dealing with some of the issues in the amendments tabled by the noble Baroness, Lady Lawlor—who has now made it from her transport system to her place—in fact in a rather more inclusive way, covering large portions of the Bill.

I will speak briefly to Amendment 132, also in my name, which I do not believe is controversial. Again, it continues the theme of the retained EU law Bill. As memory serves, one of the last things your Lordships did when sending that Bill back in the previous Parliament was to add a reporting requirement, so I suspect that there may not be much argument on either side of this against having a window on what is going on in the regulatory process. Indeed, it should provide a platform for us to have a discussion on a regular basis about the effectiveness and necessity of regulation, which I am sure many noble Lords would welcome.

My noble friend Lord Foster will not speak but has deputed me to speak on his behalf, which is a great honour and responsibility. He also signed Amendment 126 in the name of the noble Baroness, Lady Crawley. Amendment 129 in the name of my noble friend would ensure that an amendment that he will bring to the Committee later would be subject to the affirmative procedure. Like me, I think my noble friend would like to say that we do not think that the affirmative procedure is an adequate scrutiny measure, but it is marginally better than nothing.

Amendment 33 in the name of the noble Lord, Lord Jackson, makes an interesting point. I would like to hear from the Minister about who and what they are seeking to address in Clause 2(3)(h), because it is very broad. What level of specificity should we expect, or is there none?

To close, there are substantive amendments in this group, and I suggest that Amendments 113 and 133 are two that should find their way forward with the Government’s help.

[Lord Lucas (Con)]

My Lords, we have been here before. When the Schools Bill was in front of us, I was very happily lined up next to Lord Judge in saying that this would not do, and I find myself in the same position today. We have a job to do in the House of Lords; it is the proper scrutiny of legislation. This Bill seeks to avoid that. Either the Bill needs to wait and rewrite itself in rather more detail when the Government know what they want to do, or we need some such provision as has been suggested by the noble Lord, Lord Anderson and others to allow us a proper view of what will actually happen under this legislation. I very much hope that the Government will rethink, in one direction or the other.

[Lord Leong (Lab)]

My Lords, I join noble Lords in congratulating the noble Lord, Lord Sharpe, on his appointment. I look forward to working with him in the years ahead.

I thank all noble Lords for speaking on this group. Noble Lords across the Committee have raised a number of important issues relating to scrutiny. I reassure them, up front, that this Government take very seriously the importance of scrutiny, in particular facilitating parliamentary consideration of government proposals. However, we believe overall that the Bill strikes the right balance on the need for proper consideration of the important issues and the technical nature of many product regulations.

I start with Amendment 132. The noble Lord, Lord Fox, has proposed the publishing of impact assessments of affirmative regulations laid every six months after the Bill’s implementation. The impact of any new regulations will be fully considered through the development of proportionate impact analysis. The Better Regulation Framework, as most noble Lords know, is the system that the Government use to manage the flow of regulation and understand its impacts. In line with the Better Regulation Framework, for regulations where significant impacts are anticipated —above £10 million per year—full impact assessments will be published. For regulations with lower anticipated impacts, a proportionate de minimis assessment impact analysis will be completed. These assessments will, as a matter of course, consider the impact of regulations on small and medium-sized enterprises. Therefore, the laudable sentiment behind these amendments is already covered.

A number of the amendments relate to the use of the affirmative procedure. There exists a process for scrutinising secondary legislation that will operate under this Bill, including by scrutinising committees. I recognise the Bill’s delegated powers have raised questions, including from the Delegated Powers and Regulatory Reform Committee, which the Parliamentary Under-Secretary of State for Employment Rights, Minister Madders, and I appeared before in October. I remind noble Lords that the DPRRC stated and admitted in that evidence session that it saw the need for powers. The Government take seriously the recommendations of the DPRRC, and I plead mea culpa—we put our hands up that we should have been much clearer and could have done more to explain the reasons for the approach taken in this Bill.

The noble Lord, Lord Sharpe, asked about the Attorney-General’s speech at the Bingham lecture. He is a fine lawyer and is a good friend of mine. I listen to him all the time. But he said in his speech that this Bill does not exceed excessive powers. Product regulation is very technical, and we have ensured the that the Bill allows for appropriate parliamentary scrutiny, enabling this House to play the crucial role of scrutinising legislation. Existing secondary legislation runs to over 2,500 pages and covers everything from consumer products, such as toys and cosmetics to heavy industrial products like pressure equipment. We intend to use the Bill’s delegated powers to make targeted changes, on a case-by-case basis, to update and build on the large and well-established existing framework.

I should like to reassure all noble Lords on the specific point around EU law. The appropriate scrutiny procedure is provided by Clause 11, which applies the draft affirmative procedure to various regulations, including those making provision for a power of entry, creating a criminal offence or amending primary legislation, which will need to be debated and approved by Parliament before being implemented.

I turn to Amendment 133, in the name of the noble Lord, Lord Fox. This proposes a sifting mechanism whereby all regulations are preconsidered by a joint committee of both Houses. While we understand the need for oversight, a bespoke joint committee approach could cause delays. In addition, there is already a parliamentary process for statutory instruments made under specific Acts of constitutional significance where sifting is applied to ensure appropriate scrutiny. We do not consider that such a process is proportionate or necessary under this Bill, where regulations will often relate to routine minor technical changes—for example, a change in chemical content in cosmetics or toys.

I turn to the amendments of the noble Baroness, Lady Lawlor—

Product Regulation and Metrology Bill [HL]

Lord Lucas Excerpts

Committee stage
Monday 25th November 2024 Grand Committee

Moved by

[Lord Lucas]

20: Clause 2, page 2, line 30, at end insert “with information including their origin, the identity of the local representative, their value and beneficial ownership”
Member’s explanatory statement
This amendment will enable discussion of what information might usefully be marked on the product, such that the liability for regulations and charges can be clearly established.

[Lord Lucas (Con)]

My Lords, I rise to move Amendment 20 and speak to the others in this group. Each of these amendments has a role, I hope, in improving or at least elucidating the provisions of the Bill, but they are also put together from the point of view of “Let’s collect the tax”.

This Government have not been shy of hurting people in pursuit of a few hundred million pounds in tax per year. They have threatened the basis of family farms, chucked children out of school in the middle of their exam years and frozen old age pensioners. Why, then, are they leaving a billion pounds a year lying on the floor, uncollected, from scamming Chinese and other—Asian, by and large—traders? It is quite extraordinary. It not only fails to collect the tax but damages the British businesses that would be doing the business if we were not giving a 20% price advantage to the likes of Shein and Temu. Now we see that Amazon has to follow them down this track because it has been so damaged by Shein and Temu that it has to go into the same business. This is economically illiterate and ridiculous.

I am very grateful to the noble Lord, Lord Leong, for arranging a meeting to discuss this. He very kindly invited a Treasury official along. I have had a reply now from the Treasury saying basically, “Don’t ring us, we’ll ring you”. I find this extraordinary, but I do not particularly blame this Government. The last Government was just as bad on it. However, it is extraordinary not to collect tax when the Government are going to such lengths to collect additional tax now.

I will add one more thing: for goodness’ sake, make the marketplaces liable for VAT. Stop trying to make the individual traders liable for VAT. They are here today, gone tomorrow, registering 500 new companies with Companies House, with lots of new VAT numbers. As soon as you put your finger on them, they are gone. Make the marketplaces collect VAT. It would be simpler and easier for them and for us, and much more effective.

Amendment 20 asks that we get a sensible amount of information on the origin, the identity of the local representative, the value and the beneficial ownership of the goods, so that everybody involved can see where the liability for product regulation sits, where the liability for any charges can sit and how things can be enforced. The more difficult you make it to track down who should be collared, the less it will happen. In these regulations, we must make it easier to chase people.

Amendment 24 basically says, “Make sure the representative who is appointed has the financial strength to stand behind what’s going on”. If the Minister cares to browse Amazon when he has the time and looks for, say, a three-terabyte drive—the sort of thing I shall need to pack up my 30 years in this place and carry it away with me—he will find that there are some very reputable products on the market for around a hundred quid. That is astonishing. I remember buying my first serious computer, which had 20 megabytes of hard drive, and thinking that was extraordinary. So—three terabytes for a hundred quid from a good manufacturer.

However, there are also products on the market for fifty quid from weirdly named companies. The game being played there is that the products do not contain three terabytes. They probably contain only 256 megabytes. But it does not show on the outside and by the time that anyone gets around to complaining and putting bad reviews in place, the company has changed; it has gone; it is someone else and there is no one to pursue. With a product such as a hard drive, it takes a while for someone to realise that it has been mis-sold. If you are going to pursue these people properly, you need to know that you can go after them for several months of turnover and succeed, which means that the representatives in the UK have got to be good for the money. Otherwise, you just do not have effective product regulation.

Amendment 25 also relates to “Let’s collect the tax”, since we are creating these structures to look after product quality, which could quite easily be used to help collect tax. Amendment 26 says, “Look, we’ve got a trading standards system that is really short of money, so let’s make it easier for us to extract money from the process we are creating in the Bill and feed it through to trading standards so that we get an effective and efficient system of enforcement”. I beg to move.

[Lord Sharpe of Epsom (Con)]

My Lords, I thank the noble Lord, Lord Lucas, for his proposed amendments to Clause 2, which, as highlighted by the Delegated Powers and Regulatory Reform Committee, has been recommended for removal due to the broad and vague nature of the powers it grants. The liability for regulations and charges related to products is a matter of extreme importance. Without clear guidelines and transparent information, businesses could face significant uncertainty, which in turn undermines their ability to comply effectively.

The Government’s focus on clarity in other areas will ring hollow if they fail to address the critical need for clarity in liabilities—an issue that the amendments in the name of the noble Lord, Lord Lucas, seek to address directly. Regarding Amendment 20, by ensuring that products are marked with clear and comprehensive information, such as origin, local representation and ownership, we can establish clear responsibility for product compliance. This would not only improve regulatory transparency but foster trust with consumers and businesses alike.

I urge the Government to take this opportunity to acknowledge the importance of clear liability and responsibility frameworks. Although these amendments are to Clause 2, and we continue to discuss its broader issues, nevertheless the noble Lord’s proposed changes are a necessary step towards ensuring both accountability and transparency in product regulations.

--- Later in debate ---

I hope I have given sufficient explanation. We think the main issues that the noble Lord has raised are covered by this and other legislation, but I look forward to his comments.

[Lord Lucas (Con)]

My Lords, I am very grateful for the Minister’s comprehensive reply. On Amendment 24, I remain unclear whether the powers in the Bill allow for representatives to have to demonstrate deep pockets. I would be happy to be written to if the Minister cannot reply now. If he could point me in the direction of homework related to Amendment 25, such as the OBR analysis and so on, I would be most grateful.

[Lord Hunt of Kings Heath (Lab)]

I would be very happy to do that.

[Lord Lucas (Con)]

I beg leave to withdraw the amendment.

Amendment 20 withdrawn.

Moved by

[Lord Lucas]

21: Clause 2, page 2, line 31, at end insert “, including a requirement that the name, address and email address of the seller is provided prominently next to the price with a statement that the customer is not buying from the marketplace;”
Member’s explanatory statement
This amendment is to ensure that people are aware that they are often buying from China when buying on Amazon/eBay and the product hasn’t undergone any quality checks.

[Lord Lucas (Con)]

I will also speak to Amendment 22. Amendment 21 is fairly self-explanatory. It asks that people be made aware of where the goods they are buying come from and, therefore, what confidence they can place in their quality. Secondly, it explores whether we might place liability on marketplaces for the quality of the products they allow to be listed there, which is clearly not the case at the moment.

My view is that Amazon makes a great deal of money out of selling what are, essentially, counterfeit products. This is not a satisfactory state of affairs. Amazon is quite well enough off to do a bit of investigation, which does not take long with these products, to make sure that they are what they say they are. This would result in greater stability and higher quality of companies doing business through Amazon. I do not think it would lose Amazon any business, but I am prepared to be shocked to find that the Government disagree with me. For now, I beg to move.

[Baroness Brinton (LD)]

My Lords, Amendment 45 in this group is in my name. I also support my noble friend Lord Foster’s Amendments 117 and 122.

I come back to an issue debated at some length on the first day of Committee. I am particularly pleased to see the noble Lord, Lord Jackson of Peterborough, in his place because my amendment relates directly to his Amendment 33, which questions whether Clause 2(3)(h) should stand part of the Bill; my amendment also looks at paragraph (h). He spoke about it in the context of parliamentary scrutiny and consultation, but my focus is a different one: I am trying to look at how it will work in practice. During our debate last week, my noble friend Lord Fox said that

“the wording of Clause 2(3)(h) is ‘any other person carrying out activities’. All the other items refer to the activity of the sale and marketing of that product. This does not refer to it but any person carrying out activities unspecified”.—[Official Report, 20/11/24; col. GC 40.]

We are moving from products to people in this debate.

At Second Reading, I asked the Minister who is caught by this very wide, catch-all paragraph. In his letter of 17 October, in which he responded to issues that he did not have time to cover at Second Reading—I thank him for it—he said:

“These supply chain roles may be undertaken by individuals as well as by businesses. The Bill will enable the responsibilities of supply chain actors to be rationalised and modernised, including to reflect the development of new business models that were not anticipated by current legislation, such as online marketplaces”.


I read his reply carefully, but it did not answer my question. That is partly because “actors” could mean anybody; it does not necessarily mean somebody mentioned in one of the clause’s previous paragraphs. I remain concerned about that in the context of Clause 2(3), which identifies the

“persons on whom product regulations may impose product requirements”.

It appears that paragraph (h) can include absolutely anyone involved in selling a relevant product, without limitation. This matters because a private individual selling an item with a lithium-ion battery, for example, on eBay or Vinted may be an actor at the very end of a long supply chain, but that does not mean they are a professional in the business. The wording is important.

Where does the responsibility for satisfactory compliance lie? In our Second Reading debate, there was some discussion about online marketplace platforms having responsibility for ensuring compliance but, frankly, eBay and Vinted cannot check the detail of a regulated item—in the case I gave, a lithium-ion battery in a bicycle—or how it meets the regulations. Also, the individual at the end of the supply chain has no obvious way of finding out whether they are responsible for ensuring that the item they wish to sell meets the regulations. Of course, there is a future actor in all of this: the person who buys it.

Which?, in its very helpful briefing prior to Second Reading, pointed out that the Bill needs strengthening in a number of areas, including clearer definitions of key terms, so that existing and future online marketplaces cannot take advantage of gaps to avoid responsibility. Clause 2(3)(h) is one such area. Will the Minister help by making it clear who is covered? Can he also explain exactly how the online marketplaces can manage the extension of liabilities for defective products sold by individuals, which those online marketplaces have not seen themselves? Alternatively, if individuals selling items are covered by Clause 2(3)(h), how do those individuals become aware of their responsibilities under the Bill for ensuring that the goods they sell meet the requirements and are not defective? Frankly, eBay sending them an email saying, “You are entirely responsible” is not good enough for compliance. If this is not clarified, we have a gaping hole in the Bill.

--- Later in debate ---

[Lord Leong (Lab)]

The Bill is drafted in this way to address who is going to be accountable. My invitation to all noble Lords to a meeting stands, and I welcome each and every one of them. I hope this amendment can be withdrawn.

[Lord Lucas (Con)]

My Lords, I am very grateful for the long and detailed reply given by the noble Lord, Lord Leong. I recommend a meeting with him to anybody. He is a most welcoming and courteous Minister, and you get good results out of a meeting with him. If, on rereading what he has said, I have any further questions, I shall attend the meeting. For now, I beg leave to withdraw the amendment.

Amendment 21 withdrawn.

Product Regulation and Metrology Bill [HL]

Lord Lucas Excerpts

Committee stage
Wednesday 27th November 2024 Grand Committee

Moved by

[Lord Lucas]

29: Clause 2, page 2, line 43, at end insert—
“(l) the withdrawal from sale of products of a type concerning which Trading Standards have raised concerns, until such time as the seller has satisfied Trading Standards that those concerns are unfounded.”

[Lord Lucas (Con)]

My Lords, the market we have at the moment is such that, if there is, say, an orange teddy bear on the market, it may appear in a hundred or more different guises from ostensibly different sellers. Perhaps it has a different label or name attached, but it is, in essence, the same product. If we insist on trading standards proving that each of these instances is dangerous, we will find ourselves unable to enforce this legislation properly.

Amendment 29 suggests reversing the process so that, when trading standards become aware that, say, an orange teddy bear of a particular description appears to be dangerous, they can stop them being sold and put the onus on the sellers to prove that they are safe. In that way, we can achieve the protection of the public quickly and simply, without overwhelming trading standards. I beg to move.

[Baroness Crawley (Lab)]

My Lords, I will speak to Amendments 31, 85, 97, 98 and 109, all on enforcement issues. Amendment 31 in my name and Amendment 98 in my name and that of the noble Lord, Lord Foster of Bath, deal with the subject of fulfilment houses. Yes, it sounds like a slightly dodgy building, does it not? Anyway, I have been educated.

Amendment 31 addresses Clause 2. At the end of line 14 of page 3, it would insert

“a person who controls fulfilment houses in the United Kingdom”.

This amendment adds to the list of persons in Clause 2 on whom product regulations may impose product requirements. I thank the Chartered Trading Standards Institute for its advice on this issue.

Fulfilment houses or centres store, pack and ship products for other companies, which are third-party sellers, often from overseas. Without clear rules, these products easily skip safety checks, creating risk for consumers. It is important to aim for compliant products only to enter the market, and these fulfilment houses should play a critical role in ensuring that.

There is presently a lack of clarity regarding the specific obligations of fulfilment houses, as their operations may not fall directly under the role of traditional retailers or manufacturers. This amendment makes it clear that fulfilment houses must meet safety standards, just as regular shops must, and are accountable if they are storing and passing on products for delivery that are unsafe or dangerous.

Amendment 98 aims to close a critical gap in the supply chain and protect consumers from non-compliant goods from third-party sellers. The amendment seeks to define “fulfilment houses” because at present the Bill does not. This is needed as these houses are, as I said, a key loophole for unsafe products entering the UK market. The amendment also outlines how fulfilment houses will have to keep records showing that the products they store meet all necessary product safety requirements. These houses are also to work with enforcement officers if that is needed. Although fulfilment houses already register for tax due diligence, this extension to product safety is a necessary logical next step towards ensuring safe consumer products across the board.

Amendment 85 in my name and that of the noble Lord, Lord Foster of Bath, is on enforcement of metrology regulations. This amendment, advised by trading standards officers, makes it the duty of weights and measures authorities in Great Britain and a similar body in Northern Ireland to ensure that products are accurately measured and to add to the list in Clause 6 on page 6, line 30.

Although the Bill currently includes rules about measurement units and product quantities, it does not, according to weights and measurements officers on the ground, fully cover the checking of equipment used to make these measurements. Accurate measuring equipment is essential for ensuring fair trade, so expanding the regulations to include equipment testing, as our amendment suggests, would help authorities to enforce those rules more effectively. There are also concerns that the Bill may allow people other than trading standards officers to carry out enforcement, even though trading standards officers are already trained and authorised to do this work.

This amendment clarifies who is responsible for enforcement, helping build consumer trust in fair measurements, which affects consumers UK-wide. It will also ensure that local authorities will be responsible for regularly checking products to ensure accurate measurements, investigating complaints and taking action if they find issues. This will mean that all sellers follow the same standards so that consumers can trust the quantities they are buying—whether groceries, petrol or other goods—and that they are measured fairly.

I shall now speak to Amendment 97 in my name and those of the noble Earl, Lord Lindsay, and the noble Lord, Lord Foster of Bath. The explanatory statement says:

“This amendment inserts safeguards to ensure non-regression from existing legal protections, as well as providing for the due consideration of the precautionary principle when scientific evidence about a possible risk may not yet be fully available but there is a need to be cautious given the potentially serious consequences for the safety of individuals”.


In current legislation, Regulation 10(5) of the General Product Safety Regulations 2005, for example, includes the duty that

“An enforcement authority … take due account of the precautionary principle”.

That point was relied on by the organisation Which? in its campaign to persuade the Government in 2019 to take action and require Whirlpool to recall dangerous tumble dryers that were responsible for starting hundreds of fires. When the scientific evidence was not fully available, the precautionary principle kicked in. At that point, scientific evidence is not completely collated but, when there are hundreds of fires, something needs to be done.

The Bill provides the Government with the opportunity to introduce new regulations that will upgrade consumer rights, but we believe there needs to be a more encompassing principle to keep consumers safe and underpin all future regulation with key consumer protections. With this amendment, we are seeking to ensure that the primacy of a high level of consumer protection is built into the Bill.

--- Later in debate ---

[Lord Leong (Lab)]

I thank the noble Lord for that. We would expect regulators and authorities to carry out enforcement in line with the regulators’ code, which I am happy to share with noble Lords.

[Lord Lucas (Con)]

My Lords, the debate ranged a long way beyond my amendment, and I shall not attempt to summarise it. I suspect that I shall be listening to many of the arguments again at Report, specifically those from my noble friend Lord Sharpe of Epsom and perhaps the noble Baroness, Lady Crawley, too. In his reply to my amendment, I felt that the Minister rather missed the point, which is that, no, they do not have the powers at the moment. That is why this amendment has been tabled, because they are saying that they do not have the powers. Yes, you can name a product and have it taken off, but if it appears in 100-plus different guises, which all claim to be different but are actually the same, you are stuffed. That is what I am trying to get at. I shall come back to this at Report, after taking further advice.

I am also grateful to the noble Lord for reminding us of how overregulated our nuclear industry has become and that allowing it to continue to be the subject of such a ridiculous free for all—resulting in us paying five times more than it costs the Koreans to build a nuclear power plant—is not something that should be waved away in the breadth of the powers that we have in this Bill. I beg leave to withdraw my amendment.

Amendment 29 withdrawn.