Digital Markets, Competition and Consumers Act 2024 (Consequential Amendments) Regulations 2025 Debate
Full Debate: Read Full DebateViscount Camrose
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(4 days, 1 hour ago)
Grand CommitteeLest you forget, my Lords. The rest of the Minister’s response to the question from the noble Baroness, Lady Stowell, was:
“Ministers recognise the high importance of foreign states not being allowed to influence the policy of UK newspapers, but there should be a balance to encourage investment into the press sector. Therefore, we are carefully considering a response to the consultation. We hope to publish a response very soon and lay the SI shortly after that”.—[Official Report, 5/3/25; col. 251.]
We need to be reassured that this will not see a watering down of the intentions of the original Act.
My Lords, I thank the Minister for introducing this SI and the noble Lord, Lord Fox, for his characteristically thought-provoking remarks, particularly those on the dynamics of data bridges between the EU and the US, which were very pertinent.
The measures in this SI are intended to facilitate the effective implementation of the DMCC Act 2024. His Majesty’s Opposition do not object to the instrument in principle, given that it implements a Bill introduced under the last Government, but we still welcome the opportunity to scrutinise its provisions carefully to ensure that they deliver the outcomes intended. In that spirit, let us consider the impact of these measures.
This SI makes amendments to existing legislation to facilitate the implementation of the DMCC Act, whose purpose is to enhance consumer protections and improve their enforcement. Part 3 strengthens the powers of regulators to investigate and enforce consumer protection laws and Part 4 introduces stronger safeguards for consumers, particularly regarding unfair commercial practices, subscription contracts and alternative dispute resolution. Chapter 2 of Part 5 enables UK regulators to assist their international counterparts in matters related to competition and consumer protection.
The amendments in this SI update existing consumer law frameworks to align with the changes introduced by the DMCC Act. These provisions enable the necessary disclosure of information for enforcement purposes and ensure consistent application of the statutory provisions across different regulatory contexts. This is particularly important, as the updated consumer protection measures require regulators to access relevant information in order effectively to carry out their functions.
The SI also ensures the continuity of consumer policy during the transition to the new framework. While Part 4 of the Act will replace existing regulations, transitional provisions are in place to allow for the continued protection of consumers’ rights to redress for unfair trading until the new regulations are fully implemented. The instrument also updates the Consumer Rights Act 2015 and the Consumer Protection from Unfair Trading Regulations 2008 to facilitate a smooth transition to the new framework and ensure that consumers’ protections remain intact during this period.
While we on these Benches broadly support the measures, I have a few questions to clarify some important aspects. First, the instrument extends the ability of regulators and public authorities to disclose information to consumer enforcers, enabling them to more effectively investigate and enforce breaches of consumer protection laws. This includes amendments to various Acts, including the Water Resources Act 1991, to allow such disclosures. Can the Minister give an overview of the safeguards in place to ensure that information shared between bodies remains secure and is handled appropriately, particularly with regard to sensitive business or personal information? While information sharing is crucial for effective enforcement, it is equally important that the privacy and confidentiality of individuals and businesses are respected.
Secondly, the instrument seeks to ensure that the protections in Part 4 of the DMCC Act, particularly around subscription contracts, prepayments to savings schemes and unfair commercial practices, are properly enforced. Subscription traps have been a long-standing concern and, while the DMCC Act aims to address this, we must consider whether the proposed changes are sufficient to prevent such practices. How will the Minister ensure that the protections in place will be fully effective in addressing subscription traps? Can she assure us that businesses will be held to account under the new regime in a way that is both transparent and fair?
Finally, this instrument updates various references across the statute book to ensure that outdated provisions are replaced with those in the DMCC Act. This helps maintain the clarity and consistency of the legal framework. However, can the Minister confirm that relevant stakeholders, including regulators and businesses, have been adequately consulted on and prepared for the transition to these new rules, especially where they replace long-standing regulations?
I acknowledge the positive steps taken by this SI, but we must ensure collectively that they meet their three goals: to protect consumers, to promote fair competition and to ensure the right balance between privacy and transparency. I look forward to the Minister’s response and to further assurances that will aid the successful implementation of these important reforms.