Faulty Electrical Imports

Nick Boles Excerpts

Tuesday 22nd March 2016 Westminster Hall

[The Minister for Skills (Nick Boles)]

It is a pleasure to serve under your chairmanship, Mr Davies, on this sad day. I associate myself with the comments about the victims in Brussels. I congratulate the hon. Member for Swansea East (Carolyn Harris) on securing the debate and making such a comprehensive and thoughtful exposition of the issues that not just worry her but led directly to the death of one of her constituents. I also congratulate Electrical Safety First, which has clearly done a superlative job of engaging with Members from all parts of the House and providing them with compelling briefing.

In the debate, the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) got to the heart of the matter—the question of whether the arrangements we have to protect consumers are fit for purpose in the age of the internet, with globalised supply chains, where enforcement at a very localised level, as she called it, does not really address some of the bigger problems and sources of risk. It is for that reason that we did not feel that the previous review of trading standards had gone far enough: it did not really address her question. That is why a more fundamental review, not so much of trading standards as such, but of consumer protection in an internet age, has been launched by my hon. Friend the Minister for Small Business, Industry and Enterprise. In the meantime, I will explain in the brief time available what the Government are doing with trading standards and other enforcement bodies. I hope thereby to answer most of the questions posed to me in the great range of excellent contributions from hon. Members.

The Department for Business, Innovation and Skills provides £14.5 million a year to National Trading Standards and to Trading Standards Scotland, which use that money in large part to focus on the problems of faulty goods, counterfeit goods and the various different ways, whether through fulfilment houses or online trading sites, in which they find their way into the country. National Trading Standards has a safety at ports and borders team that focuses in particular on the physical import of those goods, but there is also close work between National Trading Standards and major sites such as Amazon, eBay and Facebook, which are clearly one of the main ways in which consumers are being sold either faulty or counterfeit or both faulty and counterfeit goods.

I will give one vivid and recent example of the enforcement action being undertaken. Operation Jasper involves 63 local authorities’ trading standards officers and has led to 4,300 Facebook listings being taken down, 12 premises raided and 200 warning letters sent to other traders. That is the kind of proactive enforcement that we want to see. I am sure that there is always more that can be done, but National Trading Standards and local trading standards are working closely with sites such as eBay, Facebook and Amazon on such measures. As another example, some brands of hoverboards and LED Christmas lights—items that were mentioned in the debate—were removed from eBay last October as a result of enforcement activity by trading standards.

The question of counterfeit goods is in a sense a subset of the issue we are debating, rather than a different matter. Some of the goods in question are not counterfeit; they are just faulty. Others are counterfeits but not faulty, and some are both. In September 2013 the coalition Government launched a dedicated intellectual property crime unit, run by the City of London police. That has been taking action against sellers who use Facebook, and those who use the more traditional route for counterfeit goods—the much-loved tradition of car boot sales. In legislation in 2014 we introduced a criminal sanction against the sale of counterfeit versions of goods that have registered trademarks or patents, to give legitimate producers a greater enforcement ability against those who persistently flout their intellectual property rights.

I want briefly to mention fulfilment houses, because they are one of the routes through which faulty and counterfeit goods can make their way to the consumer. As the hon. Member for Swansea East mentioned, there is one such fulfilment house in Swansea that has been the subject of enforcement action by trading standards and Her Majesty’s Revenue and Customs. That action is continuing, but it has led to a large quantity of non-compliant goods being removed from sale, including unsafe electrical products and counterfeit goods. I hope that that goes some way to reassuring hon. Members that there is quite a range of enforcement activity—some that is more traditional, as well as other approaches that address the new globalised problem created by the internet. We should acknowledge, as I think we all do in our own lives, the massive opportunities that the internet has brought us.

[Jim Fitzpatrick]

I am not sure whether the Minister mentioned the timescale for the review of trading standards. Can he suggest how long it will last and what the outcome might be?

[Nick Boles]

I do not know off the top of my head, but I am happy to write to the hon. Gentleman about that, and to copy in other hon. Members who have attended the debate. We have quite a range of expertise in the debate, and it would be useful to have contributions from hon. Members on both sides, including, perhaps, representatives of the Scottish Government, who I know also do a great deal of work on the question.

[Martin Docherty-Hughes]

The Minister mentioned the problem of the internet. Does he recognise that the internet is also a hope for the future, in relation to consumer rights and protection? People can put reviews on eBay and Facebook, and there are greater opportunities through technology than we have been giving credence to in the debate. I hope that the Government will take cognisance of the changes that are coming in technology, in the next 20 years, because what we have seen so far will pale into insignificance.

[Nick Boles]

I entirely agree. Before I took the intervention from the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) I was coming on to the fact that, for all that the internet has created opportunities for criminals and those who would abuse freedom, it has nevertheless also created even greater opportunities for legitimate traders and consumers. As the hon. Member for West Dunbartonshire (Martin Docherty-Hughes) says, there are opportunities through the internet to share information about suppliers who have failed to live up to their obligations, and products that do not do what they are supposed to do, or are counterfeit or faulty.

In the debate, several hon. Members picked up on the idea of introducing a new charter mark, but I want to warn against viewing that as a panacea. As hon. Members will be aware, electrical goods are already required to carry the CE mark, and the problem is that lots of people fake that; so introducing a new charter mark would not itself necessarily deal with the problem. I presume that people would fake the new mark just as they did the previous one. It is more a question—and perhaps this is what was being suggested—of asking social media sites and trading platforms such as eBay, Facebook and Amazon to take responsibility themselves for having the kinds of review information that the hon. Member for West Dunbartonshire mentioned, and to be proactive not just in taking products down but in kicking traders off their sites. Of course the traders would all go off and set up in a new guise two months later, and return to the sites, but consistent and persistent work to try to prevent consumers being ripped off or put at risk is needed. I assure the hon. Member for Swansea East that the Government will continue to work with her and other Members, and Electrical Safety First, to try to ensure that we have the problem under control.

[Geraint Davies (in the Chair)]

Because of excellent time keeping, I can call Carolyn Harris to wind up.