Consumer Rights Bill

Lord Taylor of Holbeach Excerpts

Wednesday 19th November 2014 Lords Chamber

[Baroness Oppenheim-Barnes]

I thank my noble friend for his intervention. I knew that he laid those regulations under the EU directive in your Lordships’ House, so I hoped that he might be here and I am delighted that he is. My noble friends and the noble Lords opposite will realise that this is a great disappointment to me. I can see that the Government are not of the same mind. The objections which have been put forward are a bit punitive to what is a very simple—

[Lord Taylor of Holbeach (Con)]

I am sorry to interrupt my noble friend, but the Minister has not replied to her amendment at this stage. I have a feeling that she would like to hear from the Minister before she replies to her.

[Baroness Neville-Rolfe]

I am grateful to the noble Baroness, Lady Oppenheim-Barnes, for her contribution today and in Grand Committee. I value her long experience and expertise on the subject of consumer rights, including from her time as Minister for Consumer Affairs—I asked at the department and gathered that she was a real livewire—not forgetting her experience at the National Consumer Council and elsewhere.

I am glad that she feels that the Bill process has been good, with pre-legislative scrutiny and stakeholder involvement. I think that is an interesting general lesson to learn. I agree that consumers and businesses should be educated about their rights and responsibilities effectively. We have made this point many times during discussions. I share the noble Viscount’s concerns about the amendment, because it is very wide ranging.

It also goes wider than the Bill. Consumers and traders need to know about the rights and responsibilities under other consumer legislation, too, such as the consumer rights directive. I can confirm that the regulations came into force in June this year. I thank my noble friend Lord Younger and his role in that process.

I agree with my noble friend that this is a very important area. We will not realise the benefits of the Bill unless the new rights are well understood and used. As part of our work preparing for implementation of the Bill, we have worked closely with business groups, consumer groups and enforcers to develop a high-level plain English summary of consumer rights because information is critical. That summary is being prepared to cover the various circumstances that arise from this legislation. It allows traders the flexibility to display the information in the most appropriate way for their business.

I do not believe that the mandatory approach suggested by this amendment is the most effective way of ensuring consumers are informed of their rights. There is a real risk that overloading a consumer with information at the point of sale would lead to them ignoring that information. Surely that defeats the object of simplicity and clarity. For many things—for example, newspapers or bags of apples—what the voluntary approach allows is common sense. There is also a risk of confusing consumers where retailers’ own policies are more generous than consumers’ statutory rights. A major retailer told us that it already offers terms more generous than the statutory requirements. It has built its brand on that and thinks that displaying information on core consumers’ statutory rights would undermine its message that a customer who was dissatisfied for any reason could bring the product back even if it was not defective.

We are therefore already developing wording that works. We have wording that can be adapted to various circumstances whether you are selling goods in a shop or online. We have business groups committed to promoting this with their members. We have consumer groups that are also committed to promoting this. I do not think that this amendment is the right way forward. Instead, a flexible, voluntary approach will work. Business groups support the voluntary approach, including the British Retail Consortium, the Federation of Small Businesses and the British Chambers of Commerce, all of which are critical to information provision to the many businesses involved and to good customer service and good consumer care. I believe in a simple, clear framework of law. That is important to good traders as well as to rogue traders, to pick up a point made earlier.

The information provision is being done as part of the work of the implementation group, which also involves Which?, enforcers, Citizens Advice and others. I agreed in Committee that other relevant consumer rights, such as that in the consumer rights directive, should be part of the information dissemination process. I do not think that this is the right way forward. I have had useful discussions with my noble friend Lady Oppenheim-Barnes and I ask her to withdraw the amendment.