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Digital Markets, Competition and Consumers Bill - Sitting 12

04 July 2023

Proposing MP
Birmingham, Selly Oak
Type
Public Bill Committee

At a Glance

Issue Summary

The statement discusses clauses in the Digital Markets, Competition and Consumers Bill related to unfair commercial practices, including misleading actions, omissions, aggressive practices, and requirements of professional diligence. The statement discusses amendments to clause 217 and related provisions in the Digital Markets, Competition and Consumers Bill to address unfair commercial practices. Steve McCabe is discussing amendments to the Digital Markets, Competition and Consumers Bill that aim to address online marketplace safety standards and consumer protection. Steve McCabe discusses amendments to the Digital Markets, Competition and Consumers Bill regarding online marketplace safety and the removal of dangerous or counterfeit goods. Steve McCabe criticises the government's approach to regulating online marketplaces for non-compliant products. Steve McCabe discusses amendments aimed at regulating products sold in online marketplaces. The statement addresses the issue of 'greenwashing' by proposing measures to ban unsubstantiated environmental claims about products and services. The statement addresses concerns about greenwashing practices by companies and proposes amendments to tackle misleading environmental claims. Steve McCabe discusses the issue of greenwashing in relation to consumer protection and sustainable claims. The statement discusses an amendment proposing to add drip pricing as an unfair commercial practice under the Digital Markets, Competition and Consumers Bill. The statement discusses amendments aimed at banning fake reviews and ensuring the accuracy of consumer endorsements. Steve McCabe supports the amendment to add fake reviews to the list of unfair practices defined in the Digital Markets, Competition and Consumers Bill. Steve McCabe is discussing amendments related to digital markets and competition, specifically focusing on expanding the definition of an invitation to purchase. The statement addresses amendments related to consumer protection in online marketplaces and invitations to purchase without a price. Steve McCabe discusses amendments related to consumer rights and redress under the Digital Markets, Competition and Consumers Bill. The statement addresses amendments to ensure robust consumer rights to redress and protect against inadvertent reduction in baseline protections.

Action Requested

Steve McCabe calls for discussion on clause 217 and subsequent clauses standing part of the bill. He also moves the discussion forward despite some initial confusion about the sequence of speakers.

Key Facts

  • Clause 217 sets out unfair commercial practices prohibited by the Bill.
  • Government amendment 71 ensures acts or omissions by traders are covered under current law.
  • Clauses 218 to 222 define and prohibit various types of misleading, aggressive, and negligent commercial practices.
  • Clause 217 sets out a general prohibition on unfair commercial practices.
  • Amendment 71 ensures that rogue traders' actions fall under the definition of commercial practice.
  • Clause 220 defines aggressive practice, including coercion and undue influence.
  • Amendment 119 inserts a clause requiring compliance with the General Product Safety Regulations 2005.
  • Amendment 123 introduces marketing restrictions on counterfeit or dangerous products online.
  • Amendment 124 empowers authorities to remove unfair commercial practices from the internet if found under Schedule 18 paragraph 32.
  • Amendment 121 requires regulations defining 'reasonable steps' for sections 217 and 218 of the Act.
  • Amendment 120 makes it a misleading action to sell goods online without taking reasonable steps to ensure they have not been subject to recall.
  • Amendment 124 creates the takedown power for dangerous or counterfeit goods from online sales.
  • In 2021, 60% of toys tested were unsafe and 86% were illegal to sell in the UK due to lack of compliance with safety standards.
  • Amazon's US annual report acknowledged inability to prevent sellers from selling unlawful products.
  • BTHA reported a crocodile toy as dangerous but faced delays in removal by Amazon over two years.
  • Which? found 90 products still for sale on Amazon and 20 on eBay despite recalls due to safety risks.
  • Platforms have failed to adequately address issues related to non-compliant products.
  • The OPSS chief exec stated there is too much evidence of non-compliant products sold by third-party sellers on online marketplaces.
  • Amendment 124 would 'require the removal' rather than merely request it, giving regulators a stronger power.
  • Electrical Safety First found 60 unsafe e-bike and e-scooter chargers across four online marketplaces.
  • The product safety review was first promised over a year ago during the Report stage of the Building Safety Bill.
  • The Office for Product Safety and Standards (OPSS) reports that between 60% to 80% of sampled products are unsafe.
  • Amendment 68 aims to ban greenwashing by prohibiting unsubstantiated environmental and sustainability claims.
  • Amendment 69 proposes a Government-led consultation on defining 'sustainability' for labelling products and services, requiring compliance with international standards.
  • Amendments aim to prevent misleading commercial practices regarding the environmental benefits of products.
  • Amendments 68 and 69 aim to tackle greenwashing practices.
  • A ClientEarth survey found that 66% of consumers are willing to pay more for environmentally friendly products, rising to 72% for those under 20.
  • A European Commission study in 2020 showed that over 50% of environmental claims were vague, misleading, or unfounded.
  • Amendments 68 and 69 would ban greenwashing practices.
  • The amendments require the Government to define sustainable products and services according to international standards.
  • Research shows that consumers under 35 make purchasing decisions based on trust in sustainability claims.
  • Drip pricing involves advertising only part of a product’s price and revealing other obligatory charges later in the purchase process.
  • The Competition and Markets Authority (CMA) has found enforcement against drip pricing to be inhibited by the absence of an explicit ban.
  • Research on the prevalence and harm caused by drip pricing will be published shortly.
  • Amendment 116 adds the practice of commissioning fake reviews, offering services to write fake reviews, and displaying consumer reviews without verifying their accuracy to unfair commercial practices.
  • Amendment 125 would add practices such as stating false origins of reviews or misrepresenting consumer reviews to banned practices.
  • Which? research from 2020 found that consumers are more than twice as likely to buy poor-quality products influenced by fake reviews.
  • The average UK household spends £900 a year due to online review influence, according to the CMA.
  • Department for Business and Trade's April 2023 research shows that 11% to 15% of reviews in assessed categories were fake.
  • The amendment comes from consumer group Which?.
  • ESF found that 93% of products bought from online marketplaces were unsafe.
  • The Government plans to consult on fake reviews in the autumn.
  • Amendment 126 aims to leave out “and its price” from clause 222.
  • The amendment seeks to cover characteristics of a product even if the price is not provided.
  • Amendment 127 aims to make it mandatory for consumers to be informed about the status of a seller when purchasing products online.
  • Amendment 126 would expand the definition of 'invitation to purchase' to cases where information about product characteristics is provided but not its price.
  • Which? conducted tests in February this year and found that all 10 plug-in mini-heaters bought from online marketplaces such as Amazon and eBay failed safety requirements.
  • Amendment 114 proposes a report on the merits of individual and collective consumer rights through secondary legislation.
  • The report must be laid before Parliament within 12 months after the Act is passed.
  • Amendment 67 seeks to ensure that consumer rights under the new regulations are not lesser than those available under the Consumer Protection from Unfair Trading Regulations 2008.
  • Amendment 67 aims to maintain existing levels of protection in future secondary legislation.
  • Amendment 114 requires a report on the introduction of individual and collective redress rights.
  • The Consumer Protection from Unfair Trading Regulations 2008 provide baseline protections for consumers.
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