Consumer Protection (Enforcement) (Amendment etc.) (EU Exit) Regulations 2020

This SI also makes a number of other changes to EU exit regulations relating to consumer protection. First, it makes a small number of changes to two previous UK-wide exit regulations that amend legislation relating to crystal glass, footwear and textiles. These are specified in the Northern Ireland protocol. These changes ensure that those regulations do not impact on the operation of the Northern Ireland protocol.

Secondly, this SI makes technical changes to replace references to “exit day” with “IP completion day”, which will now be 31 December 2020, and is necessary in the context of the transitional provisions of those exit regulations.

Finally, this statutory instrument makes some minor amendments to clarify drafting in the Enterprise Act 2002. This is in response to the 14th report for this Session by the Joint Committee on Statutory Instruments in relation to this year’s regulations implementing the new CPC Regulation.

My departmental officials have undertaken the appropriate assessment of the impacts of this instrument on businesses and relevant bodies. This showed there is likely to be a negligible impact on business. These amendments do not bring about a wider policy change or impose any new liabilities or obligations on any relevant business, organisations or persons.

Although consumer protection is devolved in Northern Ireland, following consultation, the Department for the Economy, Northern Ireland, has agreed for the SI to include Northern Ireland provisions which relate to areas that are devolved to Northern Ireland. Consumer protection is reserved for Scotland and Wales, although officials in both the Scottish and Welsh Governments have also been advised of these regulations and they have raised no objection.

This instrument is a sensible and necessary use of the powers of the withdrawal Act which will ensure that the law in this area continues to function effectively after the end of the transition period. I therefore commend the regulations to the Committee. 

I hope the Government will confirm that, in all their future dealings with the EU Commission, co-operating and liaising with our European friends will remain the highest priority, because this cross-border crime requires parallel and aligned legal frameworks and within-day co-operation. For that to happen, the CMA needs more powers from the Government on consumer protection. The CMA is more powerful when it comes to competition laws but does not have the same powers for consumer protection.

Does my noble friend agree that the time is overdue for the CMA to receive powers to impose fines? We need to change the powers of the CMA. It needs powers similar to those of National Trading Standards, or the police, to investigate cases with criminal powers. Consumer rights in this context are there to be protected, and wherever possible to be strengthened. There are still too many inadequacies in consumer protection law. It is not just consumers who suffer from modern-day ticket touts. Reputationally, sport, the music industry and the arts suffer as well.

In many respects these are framework regulations for the future, so I should like to set down one marker in particular. The noble Baroness, Lady Hayter, will recall that I have long believed that the only way we can address the worst excesses of corruption on the secondary market platforms is to have an individual booking reference on each ticket, and to enforce that requirement. That would enable an individual to check with event organisers whether a specific ticket was valid. Yet too often, enforcement is absent.

We have made progress with the details on tickets—the row, the seat, the face value, the age restrictions and the original seller—although those legal requirements are all too frequently flouted, again through lack of adequate enforcement. The regulations are limited and welcome in their objectives, and they are very specific. We now need parliamentary time and government commitment to address and update consumer protection in this country. The regulations are a welcome and necessary start, and I hope the Minister will be able to signal that the Government take these issues seriously, and intend to act once the transition period is over, while always working exceptionally closely with the European Union to ensure that, as far as possible, we take a harmonised and unified approach to this cross-border problem.

It is so good to see that there, and well done to those involved in that process.

I have another small point, which is that I am never too sure what the definition is of a small business. It keeps coming up, and I would be grateful if somebody would write to me and tell me what the definition is within the department.

Finally, it is nice to see my colleague here, my noble friend Lord Moynihan. I suspect that he and I and perhaps one or two others are particularly involved in the world of sport. We know that industry extremely well. He is so right to raise the problems of ticket touting and resales. It is a growing problem and really needs tackling. If we are talking about increasing the powers of the CMA, that has to be done. I hope that my noble friend, who may not be able to give us a strong answer on that today, will recognise that this is a big and a growing problem. Given the size and importance of sport to British citizens, it really needs tackling.

“disputes in family and consumer matters) will continue to have effect between the UK and EU member states during the Implementation Period.”

There is no surprise about that. He went on to say:

“The position after 11pm on 31 December 2020 will depend on the outcome of negotiations”.

But where are we on that matter, apart from running out of time? I hope that my noble friend will be able to confirm that these are all matters that have been discussed and, although we may say that nothing is agreed until everything is agreed, there is an agreement in principle to maintain these important areas.

I have put down Written Questions about a very important consumer right relating to air travel—namely, EU Regulation 261/2004, which deals with passenger rights in the event of flight delays and cancellations. I have been told by my noble friend Lady Vere of Norbiton, speaking from the Department for Transport, that the rules apply until 31 December. I think we have all got that message. She said that, after that date, the rules are

“retained in domestic law and will therefore continue to apply.”

I have great doubts as to whether this, being a regulation, can be retained without amendment and requiring some domestic legislation. I have asked about this but have not yet had a reply.

I understand that, as of 31 December, the EU law on passenger rights no longer applies to passengers departing from a UK airport to an airport in the EU 27, unless—and this is important—the airline is a union carrier. Yet again I ask, in a different forum, what is the position on that regulation, and how do the Government intend to replicate in full the rights currently enjoyed?

With reference to the Northern Ireland protocol, and with particular reference to crystal glass, footwear and textiles, these regulations have been redrafted to ensure that they do not affect the operation of the Northern Ireland protocol, according to the Explanatory Memorandum. I understand that that is important for ensuring that business can be pursued without being hindered or hampered.

There is also a need to ensure that flexibilities are inbuilt to ensure that Northern Ireland retailers and consumers are protected, are not subject to undue prohibitions or severe tariffs as a result of the protocol and do not end up in prohibitive lists. Can the Minister assure me that this not will be the case and that business activity and transactions can take place unhindered, that consumers would still have access to high-quality goods and that their rights will be protected at all times?

Finally, with regard to the views of the Joint Committee on Statutory Instruments on defective drafting, with special reference to the Enterprise Act 2002, to allow lower and superior courts in all UK jurisdictions to make interim and final online interface orders as part of that enforcement, is the Minister confident that these are now adequately drafted and will be resistant to legal challenge?

Secondly, I want to take up the points made by the noble Lords, Lord Bowness and Lord Randall, and others about how consumers have benefited enormously from a swathe of measures introduced in the EU, affecting trade across the borders between us and other EU countries and raising standards, protections and rights within each country. The consultative way of producing directives may have taken time across the EU, but it meant that consumer representatives were able to engage with the process both here in the UK, by working with our Government, and through pan-European consumer groups in relation to both the Commission and the European Parliament. I am sure that the Minister was often lobbied by consumer interests when he was there. Those representatives were also able to work with UKRep. Can the Minister detail what discussions have been held with Which? and other consumer organisations in relation to this instrument? Can he also outline the Government’s plan to involve them in future preparation of regulations relating to their area?

I want briefly to touch on two other things. The first is redress, which has been mentioned. We have a bit of a hotchpotch in this country at the moment. Some bits of redress come under the Minister’s department—a number of different departments, actually. Plans for a public sector ombudsman were with the Cabinet Office, I think, but have gone nowhere. I understand that the Government are rather busy at the moment, but it would be useful if this could be looked at at some point because it is an important part of consumer protection. Specifically, there was a directive that consumers should be informed of the relevant redress system for their industry, even where a provider was not part of it. It would be interesting to know what will happen to that.

Finally, I want to add my name to the points made by the noble Lords, Lord Moynihan and Lord Naseby. Things like the ripping off of consumers through ticket touts and bots is bad for consumers and involves a lot of criminality. I hope that the Minister has heard those pleas for action on this matter and a strengthening of the CMA’s powers to deal with this and other issues.