Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment her Department has made of the adequacy of (a) consumer rights and (b) support available to consumers who purchase goods and services from a company that becomes insolvent.

In 2014 the Government asked the Law Commission to examine the protections for consumers in insolvency situations who have prepaid for goods and services. Its report was published in 2016 and found that the combination of existing law and chargeback rules provided important protection, and that substantial amounts could be refunded in this way.

The Government’s response to the Commission’s recommendations was published in 2018 and has already led to new guidance to insolvency office-holders on chargeback provisions.

The UK regime sets some of the highest standards of consumer protection in the world. The Digital Markets, Competition and Consumers Bill currently before Parliament establishes new tools to drive competition in digital markets, and boosts consumer rights and enforcement against unscrupulous businesses.