Key Facts

• Clause 225 confers a power on the Secretary of State to make regulations providing consumers with rights of redress.
• Clause 226 sets out how consumers can enforce their right to redress through civil court action within time limits specified by the Limitation Act 1980.
• Clause 227 avoids double compensation for prohibited practices such as misleading actions and aggressive practices.
• Clause 228 protects consumers against inertia selling, where traders send unsolicited products demanding payment or return.
• Clause 229 makes it a criminal offence for traders to engage in unfair commercial practices.
• Amendments 72 and 73 preserve current consumer law regarding professional diligence requirements.
• Clause 230 provides defences of due diligence and innocent publication for defendants.
• Clause 231 ensures that both an officer and body corporate can be prosecuted if the officer consents to or is neglectful about an offence.
• Amendments 74 to 77 replicate the current position under the Consumer Protection from Unfair Trading Regulations 2008 regarding liability on another person.
• Clause 232 sets penalties for offences, including fines or imprisonment up to two years.
• Clause 233 outlines a three-year time limit for prosecution of an offence.
• Amendments ensure that defence provisions do not apply in relation to offences under clause 229(4).
• Amendment 77 is consequential on Amendment 74.
• Clause 234 provides powers for future banned practices and fake review enforcement.
• Clause 234 gives powers to amend the chapter after consultation.
• The Crown is not criminally liable for any infringement of regulations under clause 235.
• Clause 240 defines a product as goods, services, or digital content.
• Government amendment 78 includes part 4 of the Bill in the Communications Act 2003 to enable collaboration between Ofcom and CMA.
• Clause 234 allows for amendments to the list of banned practices.
• Clause 240 defines 'product' as goods, service or digital content.
• Crown exemption is mentioned in Clause 235.
• Clause 236 ensures contracts remain enforceable despite breaches under this chapter.
• Clause 237 introduces a broad definition of transactional decision.
• The average consumer is defined as reasonably well-informed and observant in Clause 238.
• Subsection (4) of Clause 239 includes age, physical or mental health, and circumstances in defining vulnerable consumers.
• Clause 245 provides an overview of duties on traders regarding subscription contracts.
• Clause 246 defines a subscription contract as one that automatically renews or continues unless terminated, including those with free or reduced-cost trials.
• Clause 247 excludes certain sectors like childcare and utilities from the chapter's scope due to existing regulations or public policy grounds.
• Clause 248 proposes a new requirement for subscription contracts.
• The clause allows consumers to opt-out of automatic renewal every six months or at each payment due if longer than six months.
• Consumers who do not opt-in must notify the trader manually of their intention to renew.
• Clause 248 places duties on traders to provide pre-contract information.
• Clause 249 sets out obligations for concluding a contract online.
• Clause 250 requires traders to send reminder notices when subscriptions renew, including at the end of free or low-cost trials.
• Clause 251 sets out required timescales for serving reminder notices.
• Parts 1 and 2 of schedule 20 set out pre-contract information traders must give consumers before entering a contract.
• Part 3 of schedule 20 outlines information that must be included in a reminder notice.
• Clause 248 requires traders to provide consumer information before entering subscription contracts.
• Clause 250 covers reminder notices for renewals sent every six months.
• New clauses 5 and 6 would make opt-out the default at the end of a trial period or annual subscription, unless the consumer opts in.
• UK consumers spend an estimated £1.6 billion annually on unwanted subscriptions.
• Clause 254 sets out implied terms in every subscription contract.
• Clause 255 gives consumers the right to cancel contracts without penalty under certain breaches.
• The economic impact assessment for businesses states a figure of £179 million.
• Maria Miller is proposing Amendment 128 to Clause 263.
• The amendment would change the penalty level from 'level 5 on the standard scale' to a statutory maximum, including imprisonment for up to two years or a fine (or both).
• This aligns subscription traps offences with similar offences in the Bill.
• Clause 260 creates an offence where a trader fails to provide cancellation rights before entering into off-premises subscription contracts.
• Amendment 128 would make such offences triable either way, but the minister argues consistency with current regulations and requests its withdrawal.
• Clauses 264 to 273 are discussed for standing part of the Bill.
• Clauses 264 to 273 set out how to determine when information or notices are deemed given and where the burden of proof lies.
• Government amendment 79 is a drafting amendment to ensure consistency in treating consumers as having given notice for contract cancellation.
• Clause 265 ensures conflicting subscription contract terms have no legal effect.
• Clause 266 allows consumers to seek additional legal remedies beyond those set out in the chapter.
• Clause 267 applies protections to UK consumers even if contracts are governed by foreign law and targeted at them from overseas.
• Clause 268 sets out that this chapter applies to the Crown.
• Clause 269 gives powers for the Secretary of State to make regulations on information, exit arrangements, overpayments, refunds, notice periods.
• Clause 270 amends the Consumer Rights Act 2015 to treat pre-contract information as a binding term of subscription contracts.
• Government amendments 80, 81 and 82 remove 'pre-contract information' from the definition of 'durable medium'.
• Clause 264 specifies timing and burden of proof for information notices.
• Subsection (7) places the burden of proof on the consumer regarding cancellation notices.
• Amendment 79 corrects a drafting error and is supported by the opposition.
• Clauses 265 to 271 are ordered to stand part of the Bill.
• Clauses 275 and 276 stand part.
• Schedule 21 is to be the Twenty-first schedule to the Bill.
• Clause 274 defines consumer savings scheme contracts.
• Clause 277 sets out refunding consumer payments in case of trader insolvency.
• Clause 280 places a legal duty on traders to inform consumers about protection mechanisms.
• New clause 7 would make FCA responsible for regulating consumer savings schemes within six months of the Act being passed.
• Chartered Trading Standards Institute (CTSI) believes local authorities lack skillset and resources to oversee financial services.
• There has been a 50% cut in trading standards capacity over 13 years due to budget cuts.
• New clause 7 proposed making the FCA the relevant body for savings schemes instead of local authorities.
• Clause 274 defines a consumer savings scheme contract.
• Clause 276 sets exclusions including contracts with trader turnover less than £1 million per year.
• Clause 280 requires traders to provide information about protections within 30 working days of the consumer's first payment.
• Clauses 275 and 276 ordered to stand part of the Bill.
• Schedule 21 agreed to.
• Clauses 277 to 282 ordered to stand part of the Bill.
• Further consideration adjourned till Tuesday 11 July at twenty-five past Nine o’clock.