Digital Markets, Competition and Consumers Bill (Twelfth sitting)

Neil Coyle Excerpts

Committee stage
Tuesday 4th July 2023 Public Bill Committees

[The Chair]

I call Neil Coyle.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

Is it not the shadow Minister first?

[The Chair]

I thought you were indicating. This is what happens when you are drafted in at the last moment, isn’t it? I will eventually wake up; do not worry.

[Neil Coyle]

Thank you, Mr McCabe. It is a pleasure to serve with you in the Chair.

In speaking to the amendments, may I thank the organisations that have contributed? There is a whole range of them, but I would particularly like to thank the British Toy and Hobby Association and Electrical Safety First, not least because they are based in the best constituency in the country: Bermondsey and Old Southwark. The other organisations include Which? and trading standards bodies. There is a range of amendments in my name covering a range of issues. They have at their core the need to protect British consumers, British businesses and British standards. I want to air a lot of issues. I hope I will not need to force votes and I am keen to hear what the Minister has to say in response.

Amendment 118 would make a person marketing goods online a trader for the purposes of the Act. Amendment 119 would make it an unfair commercial practice to sell goods online unless the specified safety requirements have been complied with. Amendment 123 should be self—

[The Chair]

Order. Mr Coyle, we seem to have got out of sync. You are currently speaking to your amendments, but we have not quite got to them,

[Neil Coyle]

Are we not there yet, Mr McCabe? It looks like it is me who needs to wake up.

[The Chair]

It has been an early start for all of us. Why not just pause there and we can return to you later?

[Neil Coyle]

I am a bit rusty.

[The Chair]

Regard it as a dress rehearsal. I call Seema Malhotra.

[Kevin Hollinrake]

I think there is just one key point that the hon. Lady asked me to address, which is about other types of coercion. Looking at the definition with regard to practices, clause 220 talks about “coercion or undue influence”. Under subsection (3),

“‘undue influence’ means exploiting a position of power in relation to consumers so as to apply pressure in any way”.

I think that covers the definition, as she requested.

Amendment 71 agreed to.

[Neil Coyle]

I beg to move amendment 118, in clause 217, page 146, line 11, at end insert—

“(c) a person marketing P’s goods for sale online.”

This amendment makes a person marketing goods online a trader, for the purposes of this Act.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 119, in clause 217, page 146, line 22, after “222),” insert—

“(ba) a product is sold online, and the operator of the online marketplace has not taken reasonable steps, as defined by regulations made under section 234 of this Act, to ensure that the goods offered for sale in the online marketplace comply with—

(i) the General Product Safety Regulations 2005 (SI 2005 No 1803) (‘the 2005 Regulations’), and

(ii) such other safety requirements as the Secretary of State may specify.”

This amendment makes it an unfair commercial practice to sell goods online unless the specified safety requirements have been complied with.

Amendment 123, in schedule 18, page 343, line 2, at end insert—

“32 Marketing online products that are either—

(a) counterfeit; or

(b) dangerous.”

Amendment 120, in clause 218, page 147, line 9, at end insert—

“(e) an operator of an online marketplace failing to take reasonable steps, as defined by regulations made under section 234 of this Act, to ensure that no goods offered for sale in the marketplace have been the subject of a notification to an enforcement authority under regulation 9 of the 2005 Regulations.”

This amendment makes it a misleading action to sell goods online without taking reasonable steps to ensure that those goods have not been subject to a recall.

Amendment 124, in clause 223, page 150, line 27, at end insert—

“(4A) Where a commercial practice has been found to be unfair under paragraph 32 of Schedule 18 of this Act, the authorities under this section have the power to require the removal of the relevant online marketing from the internet.”

Amendment 121, in clause 234, page 158, line 4, at end insert—

“(4A) The Secretary of State must by regulations define ‘reasonable steps’ for the purposes of sections 217 and 218 of this Act.”

This amendment requires the Secretary of State to make regulations to define “reasonable steps” for the purposes of clauses 217 and 218 of this Act.

Amendment 122, in clause 241, page 160, line 14, at end insert—

“‘online marketplace’ means a service using software, including a website, part of a website or an application, operated by or on behalf of a trader, which allows consumers to conclude distance contracts with other traders or consumers;

‘safety requirement’ includes—

(a) any relevant enactment governing the safety of products or of a specific type of products,

(b) any voluntary national standard of the United Kingdom, and

(c) any standard adopted by an international standardising body.”

This amendment defines the terms “Online Marketplace”, and “Safety Requirements”.

[Neil Coyle]

It will surprise no one that I wish to speak to these amendments; I am sorry for being rusty. Having been on Bill Committees previously and managed to get amendments through, or at least poached by the Government, I feel embarrassed to have slipped up on this one.

I went through the amendments previously, so I hope Members can copy and paste from previous debates. Amendment 123 is self-explanatory. Amendment 120 would make it a misleading action to sell goods online without taking reasonable steps to ensure that the goods have not been subject to a recall. Amendment 124 would create the takedown power—the power to remove dangerous or counterfeit goods from online sales. Amendment 121 defines reasonable steps. Amendment 122 defines an online marketplace and safety requirements, in line with the bodies who have contributed who are still concerned about where things are at in the Bill.

I think the Government’s original aim was to publish a draft Bill; this Bill took some organisations by surprise, and I think a lot are playing catch-up, hoping that issues will be aired here and that Ministers will be meeting with them soon, ahead of the Lords stages. They hope to see a bit more progress on some measures in the Bill. Most accept the need for this legislation, but very few seem convinced that the Bill does the complete job.

Mr McCabe, you were not in the Chair for our evidence sessions, where we had all the “wild west” references. The Minister suggested a Clint Eastwood in “The Good, the Bad and the Ugly” character to help take action. For those not familiar with the genre, that is the third film of Sergio Leone’s trilogy, and Clint played an antihero. He takes Tuco in to claim the reward, and then shoots him down from the noose, in order to claim further, higher rewards down the line—so that is an intriguing analogy from the Minister.

The first film in the trilogy was “A Fistful of Dollars”. I am here with “For a Few Dollars More”—the second in the trilogy—to offer a better system, with some improvements to what the Government have put forward, to try to do a better job. For those who are familiar with “The Good, the Bad and the Ugly”, there are only two kinds of people in this world—those who have seen the film, and those who have not.

The main amendment that I wish to speak to is amendment 124, and the takedown power to require the removal from online trade of counterfeit or dangerous products. This would deliver, in part, what the Minister, the hon. Member for Thirsk and Malton, said on Second Reading of the Online Sale of Goods (Safety) Bill, in response to my hon. Friend the Member for Gateshead (Ian Mearns), when pressed about taking items offline. He said that,

“we should go further than that and require marketplaces to ensure that such products are not on their sites at all, ever, and that they check to ensure that they do not appear and, indeed, remove retailers who have transgressed.”—[Official Report, 20 January 2023; Vol. 726, c. 715.]

This group of amendments, and particularly amendment 124, help deliver what the Minister said he would like to achieve, and what I hope the Bill will achieve by the point it completes its progress through both Houses.

Fundamentally, it comes back to what customers believe. My constituents, and customers, believe whether they are shopping at Argos on the Old Kent Road or on Amazon online that the goods they are buying will meet the required UK standards. That is simply not what is happening.

Some 90% of toy sales online are through Amazon, eBay and AliExpress. I have referred to Amazon previously, and I do not want to pick on Amazon, but it is one of the big three. It has done some work to try to address the concerns of organisations and trade bodies, but it is simply not enough. In its US annual report a couple of years ago, Amazon acknowledged that it was, in its own words,

“unable to prevent sellers in our stores or through other stores from selling unlawful, counterfeit, pirated or stolen goods”.

I use Amazon to represent online marketplaces more generally, because of the familiarity of customers. They believe it is a reputable organisation and trust that it meets standards, but that is not the case.

Of course, Amazon also has an ongoing battle with the GMB on recognition, which it should have resolved some time ago. Ministers should have been supportive on that issue: they say they want a high-skills, high-wage economy, and that is what trade unions set about to deliver, and that is certainly what the GMB is seeking, in partnership with the Amazon workforce.

Frankly, it is a bit shocking that some of these amendments are necessary, but they are. The British Toy and Hobby Association survey “Don’t Toy with Children’s Safety” highlights some significant concerns. The toy industry is worth £3.2 billion to the UK economy—it is a massive sector. The survey showed that, in 2021, 60% of the toys tested were unsafe for a child to play with, and 86% of the toys freely available online were illegal to sell in the UK. That is appalling for lots of reasons, including because some of it is counterfeit.

We touched on this point in previous debates. British companies trade legitimately in goods that they are licensed to provide and make. They hold a trademark. It is insulting for them to have others trading on profitable sites such as Amazon and others with contempt for UK law, in a way that would be tackled if it was happening in a physical shop or even down a market. The truth is that Del Boy’s products would meet higher standards than some of those sold online. Platforms have been accommodating counterfeit, hooky, shoddy and dangerous goods for far too long.

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[The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Paul Scully)]

I can confirm that the letter went out yesterday morning.

[Neil Coyle]

Maybe it is still in the internal post. I thank the Minister for the letter; it would be nice to know what it says. The point is that the Bill does not make clear how customers will secure redress. It presents a convoluted route of multiple agencies and potential court action that people simply will not want to take.

My amendment does not go as far as some have suggested. It is a moderate suggestion. There have been suggestions that there is full and shared liability for platforms for any product sold and that some of the measures should be retrospectively implemented so that there should be penalties on those who have sold goods that they know to be counterfeit or dangerous going back for years. I hope that amendment 121 in particular, but also other amendments in this group, are useful to the Government in delivering their aims and defending customers and businesses.

The wording of amendment 124 is crucial; I hope that the Minister will come back to this when he responds to the debate. It would “require the removal”. It is not a request to remove a product; it is a requirement to remove a product. It could be put in the hands of all the bodies in clause 143, with penalties and timely action to prevent a fatality if this is not done quickly enough. The use of the word “require” is deliberate, because the power to request is in other legislation. For example, the police can request the removal of video footage from YouTube that is incitement to violence or hatred, is homophobic or is incitement to violence between gangs. One meeting I had with the Met revealed that more than 300 requests to take down videos had been ignored by YouTube. They included calling for revenge and the murder of specific individuals in revenge attacks between gangs in London. The police should have a stronger power than that, but as with this legislation, the power to request that something is removed is insufficient; it must be the power to compel the removal, similar to—for those familiar with local authority powers—a cease and desist order by a planning body. That would be a comparable power if the Government are keen to have something stronger than that offered in the current legislation.

I hope that amendment 124 helps British businesses, jobs, standards and customers and helps the Government —that is why I am here today. Ministers claim that they want to make the UK the “safest” place in the world to be online, and here are the means to deliver that laudable aim.

[Seema Malhotra]

I congratulate my hon. Friend on his tour de force in going through his amendments and the reasons for tabling them. We can all agree that as a package, the amendments move us further forward in ensuring that there is adequate regulation of products sold in online marketplaces. My hon. Friend also made reference to the work of Electrical Safety First and its research. Having met the organisation, spoken at its event in Parliament and seen the important work it does through the all-party parliamentary group on online and home electrical safety, I think I can say that we all recognise that we must ensure the steps taken in the Bill will be adequate to deal with the challenges we know consumers face and which can put families, lives and businesses at risk.

My hon. Friend spoke to his amendments. Amendment 118 makes someone marketing goods online a trader. Amendment 119 makes it an unfair commercial practice to sell goods online unless the specified safety requirements have been complied with. Amendment 124 provides for a takedown power, about which the Minister has made some positive comments. We believe very strongly that that is needed, and I hope that he will give a commitment today about how we can take it forward, and whether the Government will accept the amendments tabled by my hon. Friend the Member for Bermondsey and Old Southwark, which we support, or introduce their own during the course of the Bill.

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[Kevin Hollinrake]

I appreciate the continued spaghetti western analogies. In my case, “Pale Rider” might be a more apt example, as obviously my demographics mean that I am pale, stale and male, but we are keen to ensure that we have a proper shoot-out with the people the hon. Member for Bermondsey and Old Southwark describes. I am totally onside with the vast majority of what he says. He knows we need to make sure we take the right kind of action in this area, and his amendments would add provisions related to product safety to regulate the sale of dangerous and counterfeit goods in online marketplaces. Existing UK product law is clear: all products must be safe, including those sold online. However, we recognise the challenge the growth of online marketplaces has created for how we deliver product safety in a global economy. I gently say to the hon. Gentleman: these are not just UK-based problems: this is a global problem. As he knows, marketplaces operate around the globe and other jurisdictions are also seeking to tackle the issue.

I hosted a roundtable with major online marketplaces in April and was clear that, in addition to their current duties, they must do much more to keep unsafe products off their sites, including removing third-party sellers who supply unsafe goods. That point was mentioned on Second Reading of the Online Sale of Goods (Safety) Bill, as the hon. Gentleman referenced just now. The Office for Product Safety and Standards, which I visited in Teddington, is following up with a programme of test purchases. There I saw at first hand some of the potential products sold online, such as toy magnets that do not comply with UK product standards. My hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon) has done fantastic campaigning in that area on button batteries. There is much we need to do. This is not just a consumer safety problem: it is about creating a fair and level playing field for UK retailers. The hon. Gentleman mentioned Argos and Amazon, but I would add our local high-street electrical stores, which have also been disadvantaged by online marketplaces being able to operate in the way they do.

[Neil Coyle]

I do not remember any western in which a sheriff held a roundtable. In terms of the outcome, what is the pace at which counterfeit or dangerous goods will be removed? That is the concern for consumers. Even if I buy something, discover that it is shoddy and report it through the process in the Bill, there is still a significant gap in time before something is taken off. The takedown power is crucial to prevent further hundreds, thousands or millions of that product being sold or marketed to people when it is known to be dangerous or faulty and could put lives at risk.

[Kevin Hollinrake]

I entirely agree. We do not think the marketplaces are going far enough. It is a key phrase that the likes of Amazon, Wish and so on just see themselves as marketplaces rather than distributors. Our point is that they are distributors. The key thing is making sure that is properly defined in law. The hon. Gentleman is right to point out some of the percentages. That is the work done by the OPSS, defining that between 60% and 80% of the products it sampled were unsafe. That is clearly and completely wrong.

[Neil Coyle]

There is no answer in that as to the timespan.

[Kevin Hollinrake]

I am coming to that.

[Neil Coyle]

The Minister is coming to it, but the takedown power is the crucial bit to do that and it is what the OPSS, which he refers to, says it wants.

[Kevin Hollinrake]

Perhaps if the hon. Gentleman allows me to go through my speech, I might be able to give some answers to his points. We are on exactly the same page on this and we have to get this right. He talks about getting the analysis right and raised a different analogy of where he considers we may have got that wrong in the past. It is important we get this right. From our perspective, the product safety route is the right way to do this. The whole product safety framework will be reformed, including online sales, and that holistic review of product safety, taking existing obligations into account—we believe there are distributor obligations—is the most appropriate vehicle for meeting concerns about unsafe goods sold online.

[Neil Coyle]

The shadow Minister also asked when the product safety review will take place.

[Kevin Hollinrake]

Very shortly. I just answered the shadow Minister; there is no prolonging this issue from my perspective. We are keen to get on with this but want to make sure the review is in the right place and the right shape when it happens. We want it to happen very soon.

The forthcoming consultation will include proposals to ensure that shopping online is as safe as on the high street and that there is a fairer playing field for law-abiding businesses. We anticipate publishing these proposals soon and look forward to continuing engagement with our stakeholders to inform and shape our proposals.

Amendment 124 would give powers to the Competition and Markets Authority and trading standards to require the removal of marketing material for counterfeit and dangerous products online. We believe, however, that extensive enforcement powers are already available. For example, when a trader markets misleading or faulty goods online, enforcers including the CMA and trading standards can apply to the court for an enforcement order to stop and prohibit the marketing and sale of the offending goods under part 3 of the Bill. [Interruption.] If the hon. Gentleman will let me get to the point where I think he wants me to get to, that will be the point made in the letter.

Part 3 of the Bill gives the CMA the power to impose an online interface order against the infringer or a third party. That type of order or notice may require the removal or alteration of online content on a website that gives access to or promotes the offending goods. The hon. Gentleman’s point was about similar powers for other enforcement bodies such as trading standards. As I said to him, however, in a letter that I think he received yesterday, that is something I am keen to explore, and will do so over the summer. I will give him a final chance to intervene, if he wants, and then I will conclude.

[Neil Coyle]

I am grateful to the Minister for giving way and for his reassurance that this will be looked at over the summer. As things stand, the Government are saying—the Minister has just said—that a product could cause a fire and potentially a fatality, but still the process would be to report it through a particular agency and possibly take court action, rather than what the regulators want to do and customers want to see, which is the take-down of the item to prevent any further dangerous incident or potential fatalities. I hope that the Minister gets to a point where that immediate power will be available.

[Kevin Hollinrake]

I totally understand the hon. Gentleman’s point, which is why I will look at it over the summer. It is not provided for in the Bill, but he makes a good point and I am keen to explore the options. We will come back to the House at some point to report what we will do in this space. I therefore very much hope that he will withdraw his amendments.

[Neil Coyle]

With that reassurance of looking at this further over the summer and to improve on where things stand, I will take the Minister at his word. The idea that we can support everything in a product safety review that will start we know not when feels a bit like missing the bus—or missing the stagecoach, to stick with the analogy. The powers need to be in the Bill to ensure that when the product safety review is done, the vehicle is already available to enable dangerous or counterfeit goods to be removed, but given his reassurance, I beg to ask to leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 217, as amended, ordered to stand part of the Bill.

Schedule 18

Commercial practices which are in all circumstances considered unfair

[Richard Thomson (Gordon) (SNP)]

I beg to move amendment 68, in schedule 18, page 343, line 2, at end insert—

“32 Making claims about—

(a) the environmental benefits, or

(b) the sustainability (as defined by section 234(1C)) of a product or service which are not based on evidence which can be verified by a court.”

This amendment seeks to ban the practice of “greenwashing”. It would include the making of unsubstantiated claims about the sustainability of products and services an unfair commercial practice.

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The issue has managed to unite Labour and the SNP with the consumers’ organisation. The question I would pose to the Minister, which I would like him to address this time, is, if not this, what? We all seem to agree that fake reviews are a problem. If we are not going to deal with the matter in this way with this definition, how are we going to deal with it so the marketplace can work with effective information and so the views of consumers can play their full part in helping people to make informed choices, which are so important in ensuring the marketplace can work effectively?

[Neil Coyle]

My hon. Friend the Member for Feltham and Heston and the hon. Member for Gordon have already made some excellent points, so I will be brief.

Amendment 125 would add fake reviews to the list of banned practices. No customer should be hoodwinked by the deceitful practice of submitting a fake review. Fundamentally, many customers see fake reviews as fraud, which is the fastest-growing crime. Our police services are overstretched and sadly, under this Government, they do not have the resources to tackle fraud. The amendment examines alternative routes to securing action to tackle a problem that is leading to dangerous circumstances, as has been outlined.

Amendment 125 would provide a stronger power than the one proposed, and it has been called for by organisations representing British customers and responsible British businesses. It would be better for good business, better for customers and better for ensuring that standards were upheld. The charity Electrical Safety First, which is based in Bermondsey and Old Southwark, has said that in one of its investigations 93% of products bought from online marketplaces were unsafe—93%! In some significant part, that is down to fake reviews imposing a false legitimacy on goods. People buy because they believe other people have bought and have had an enjoyable experience or got the product they sought.

My hon. Friend the Member for Feltham and Heston has already provided examples of the need to protect consumers, and I draw the attention of the Committee these live examples, which are happening right now. “A portable heater” was on eBay and people were saying it was fine, but it had

“easy access to live parts with 240 volts running through the heating element, posing”

what ESF called

“an imminent risk to life.”

Another example is a

“‘water-proof’ extension lead… on Amazon.”

Guess what? There are

“no water-proof capabilities”

and this

“presents a significant risk of electric shock. This item has already been recalled as unsafe by the Office for Product Safety and Standards”.

A combination of the takedown power and the removal of fake reviews that claimed that these products were okay and good to use would be a significant step forward—one that, sadly, is not in the Bill.

One last example is the bargain beauty products—not something I buy often for myself—on eBay that had no fuse in the plugs. That is how dangerous they were. Those goods, known to be dangerous, are still online. Removing fake reviews might help to prevent people from buying such shoddy items, but removing the goods altogether should be the fundamental aim. I politely suggest that the Minister adds ESF and specific consumer groups such as Which? to his round of pending meetings, to ensure that the Bill is improved—and to tackle the problem that he previously acknowledged existed. He likened himself earlier to “Pale Rider”. He may think he is “Pale Rider”, but I am not convinced that he has turned up on a horse, or even on a pony. Given that there is no baron here, it is more as though he is on a rocking horse.

[Kevin Hollinrake]

I am not sure that I can take that analogy any further. I think we are all in agreement. They say that the art of originality is to remember what you have heard but forget where you heard it. The Opposition say that we are stealing their good ideas, but obviously we committed some time ago to taking action in this area. I am not averse to taking some of the good ideas that we hear from the Opposition from time to time, but we also have to ensure that we reject the many bad ideas we hear from them in debates.

The Government agree that legislation to tackle fake reviews should be strengthened. We anticipate doing so by adding to the list of banned practices. However, it is important to get the details of those proposals right. That includes defining what we mean by fake reviews and how “reasonable and proportionate” steps will be understood. Similarly, we want those rules to encompass the manipulation of reviews that may harm consumers, which also needs detailed work with stakeholders to define. For example, the issue is not just about people trying to boost reviews, as the hon. Member for Feltham and Heston stated; it is also to do with people removing negative reviews inappropriately, which might affect ratings on review sites. The Government will therefore be consulting on fake reviews during the passage of the Bill to ensure that these rules work as intended and are clear for businesses. We will be doing that shortly, in the autumn.

The hon. Member for Bermondsey and Old Southwark talked about ESF and Which?. I have spoken to both organisations and met them regularly. In fact, one of my first jobs in my ministerial role was to speak at an Electrical Safety First conference. On that note, I hope that hon. Members will withdraw their amendments.

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[Seema Malhotra]

It is a pleasure to speak to amendment 127, tabled by my hon. Friend the Member for Pontypridd, and to make some remarks about amendment 126, tabled by my hon. Friend the Member for Bermondsey and Old Southwark.

Amendment 127 would add whether a third-party seller on an online marketplace is a trader or a consumer to the list of omissions of material information in an invitation to purchase. We have already raised concerns about the safety of products sold in online marketplaces, specifically through third-party sellers, and these concerns are accentuated by the inexplicable delay—it has been over a year since its publication was first promised, as we have discussed—of the product safety review into precisely this issue. In the meantime, the amendment would provide an extra safeguard for the consumer by making it mandatory for them to be informed about the status of a seller when they purchase a product online. That is particularly important in an increasingly digital economy, in which almost every individual or business can sell but consumers are unaware that they have different rights and forms of redress, depending on the status of the seller.

Consumer rights groups regularly conduct studies of products sold by third-party sellers on online marketplaces to test whether they comply with UK safety requirements. For example, in February this year, Which? sent 10 plug-in mini-heaters bought from online marketplaces such as Amazon and eBay to be tested at its product safety lab. All of them failed and were illegal to sell in the UK. That is especially dangerous for consumers in the light of the Conservatives’ cost of living crisis, which is resulting in people being pushed to buy cheaper, less reliable products.

Although only comprehensive Government action on this front will lead to the issue being properly tackled, the amendment would go part of the way towards providing the consumer with more power in online marketplaces, by informing them of the status of a seller and that their rights of redress when purchasing some products will vary from the rights they have when buying from the high street. It is a common-sense amendment that will help inform consumers in our digital economy and subsequently reduce the risks they face when buying from online marketplaces, and I look forward to the Minister’s response.

Amendment 126 would expand the definition of an “invitation to purchase” to cases where the information provided to the consumer covers the characteristics of a product but not its price. My hon. Friend the Member for Bermondsey and Old Southwark will speak to the amendment, which raises important questions for the Government. Removing the price from the definition of an “invitation to purchase” would ensure that many rogue traders, and the services they offer, were in scope of the definition.

As the Chartered Trading Standards Institute has pointed out, many rogue traders who target vulnerable consumers do not give a price when offering to do work. This means that it would automatically not be considered an “invitation to purchase”, and the regulations in clause 222 would not apply. By removing the reference to “price” in the definition of an “invitation to purchase”, the amendment would ensure that more rogue traders fall under the definition and can be caught by the legislation. The Minister may have his own views on the amendment. This is a really important issue, so I would welcome his response on the effectiveness of the amendment in addressing the issue and on the impact it could have.

[Neil Coyle]

I have a few brief supplementary comments, further to the excellent speech of my hon. Friend the Member for Feltham and Heston. I just want to point out an anomaly and the problematic nature of the wording of the Bill, which I hope the Government will re-examine before they go further.

Amendment 126 would expand the definition of “invitation to purchase” to cases in which the information provided to a consumer covers the characteristics of a product, but not its price. That might sound counterintuitive, as it did to me when I first went through this with organisations, but it would expand the goods and services covered by the legislation. That is important, because the use of “price” in the wording of the Bill could prohibit action against a rogue trader. The existing wording might stop the Government meeting the aims that they are setting out to achieve.

The suggestion is that the specific requirement that the price be covered, if that is not the price paid, will potentially prevent action from being taken against a trader who deliberately advertises a price, but then changes it. An example might be where someone arranges for a person to come and fix a car part, a boiler or a pipe leak, and that person then arrives and says, “The product you’ve looked at online is not compatible with your boiler,”—or their fittings, their car or whatever it might be—“but guess what: I’ve got a different one in the van that’s a bit cheaper,” or a bit more expensive, “but will do the job better for you.”

By making a slight change to the wording of the Bill to remove the words “and its price” on page 150, amendment 126 would deal with that kind of rogue practice, which is out there and which has been raised by trading standards. The fear among the bodies that are trying to secure greater action against rogue traders is that the existing wording of the Bill allows wiggle room and will let the dodgy practices continue. I hope that airing that specific, possibly niche concern today will give us greater time to capture it and ensure that the Bill does not preclude action against rogue traders where specific prices are agreed up front but that is not the deal that takes place, because someone pays for a cheaper or even a more expensive alternative that does the same job.

Having flagged that concern, I hope that the Government will look again at the wording and at how they will meet their overall aim, which I support.

[Kevin Hollinrake]

It is an interesting point. We took the decision to strengthen the existing provisions in the Consumer Protection from Unfair Trading Regulations 2008 in relation to invitations to purchase by removing the need for enforcers to prove that the transactional decision test has been met. This significantly increases the criminal liability of unscrupulous traders.

Amendment 126 would expand the definition of an invitation to purchase still further to cases in which information about products is presented to consumers without a price shown. We are concerned that that would expand the definition too far. Moreover, other provisions in chapter 1 of the Bill will achieve a similar aim: they will prohibit traders from making misleading statements or omissions in respect of all commercial practices. We feel that that covers this issue. However, I am happy to have further conversations with the hon. Member for Bermondsey and Old Southwark, certainly based on the evidence he has received, which I am happy to look at.

Amendment 127 would require that information as to whether a third-party seller or online marketplace is a trader or a consumer be added to the list of material information in an invitation to purchase. We have the same aim. Clause 222(2)(c) will require

“the identity of the trader and the identity of any other person on whose behalf the trader is acting”

to be disclosed. Moreover, subsections (2)(d) and (e) will require a range of contact details to be provided to consumers about who they may be buying from.

Accordingly, I hope that hon. Members will not press their amendments.

[Seema Malhotra]

I thank the Minister for his comments. We still take the view that this needs to be tighter. In the light of his intentions, which we understand, we will take it away and look at it again. I do not want to lose our amendment, but we will not press it to a vote today. Perhaps we can come back to it at a future stage of the Bill.

[Neil Coyle]

I am grateful to the Minister for saying that he will look at the evidence. I am happy not to press amendment 126.

[Seema Malhotra]

I beg to ask leave to withdraw amendment 127.

Amendment, by leave, withdrawn.

Clause 222 ordered to stand part of the Bill.

Clause 223

Public enforcement

Question proposed, That the clause stand part of the Bill.