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Digital Markets, Competition and Consumers Bill - Sitting 14

11 July 2023

Proposing MP
Basingstoke
Type
Public Bill Committee

At a Glance

Issue Summary

The statement addresses amendments to clauses related to alternative dispute resolution (ADR) for consumer contracts, focusing on accreditation requirements and fee restrictions. The statement discusses amendments to clauses and schedules related to digital markets, competition, and consumer rights, specifically addressing exemptions for certain bodies from ADR regulation. The statement discusses amendments to Schedule 22 of the Digital Markets, Competition and Consumers Bill regarding exempt Alternative Dispute Resolution (ADR) providers. The statement discusses several government amendments and clauses related to accreditation processes for Alternative Dispute Resolution (ADR) providers, including application requirements, fee provisions, and enforcement measures. The statement discusses concerns about the clarity and detail in clauses related to accreditation procedures for Alternative Dispute Resolution (ADR) providers under the Digital Markets, Competition and Consumers Bill. The statement discusses the criteria and process for accrediting Alternative Dispute Resolution (ADR) providers under the Digital Markets, Competition and Consumers Bill. The statement discusses several clauses and amendments related to accreditation conditions, ADR information regulations, and provision of investigative assistance to overseas regulators. The statement discusses enhancements to international cooperation on competition and consumer matters under Chapter 1 of Part 5 of the Bill. Clause 302 outlines provisions for UK regulators to assist overseas regulators, enabling international cooperation on consumer protection and competition issues. Clause 310 introduces a statutory duty of expedition for the CMA and sectoral regulators in their competition and consumer law functions. The statement addresses concerns regarding the implementation period for subscription contract provisions in the Digital Markets, Competition and Consumers Bill. Maria Miller discusses new clauses related to decision not to make a final offer order by the Competition and Markets Authority (CMA) and limits on secondary ticketing. Maria Miller is discussing new clauses aimed at regulating secondary ticketing platforms to ensure fairness and transparency for consumers. Seema Malhotra discusses new clauses aimed at regulating the secondary ticketing market to protect consumers from scams and inflated prices. The statement discusses a new clause that would require an annual report from the Competition and Markets Authority (CMA) on the effectiveness of its functions under Parts 2 and 3 of the Digital Markets, Competition and Consumers Bill. The statement discusses the reporting requirements for the Competition and Markets Authority (CMA) under the Digital Markets, Competition and Consumers Bill.

Action Requested

Maria Miller moves several government amendments that define ADR terms, specify exemptions, and limit fees charged by accredited ADR providers. She also discusses stand part motions for specific clauses and amendments.

Key Facts

  • Clause 283 defines ADR and related terms.
  • Amendments 84 to 89 add references to Scottish and Northern Irish legislation for utility supply contracts.
  • Clause 285 prohibits unaccredited providers from carrying out ADR unless exempted or acting under special arrangements.
  • Clause 286 restricts fees charged by accredited ADR providers to those approved by the Secretary of State.
  • Government amendments 93 to 96 and 108 to 111 are proposed.
  • Clause 287 allows for the review and updating of exemptions from ADR regulation.
  • Specific bodies like the local government and social care ombudsman, Independent Adjudicator for Higher Education, Parliamentary Commissioner for Administration, and redress schemes for social housing, lettings agencies, and property management are exempted.
  • Clause 287 introduces schedule 22 setting out exempt ADR providers.
  • Amendments alter the list of persons in Part 1 of Schedule 22 to include new entries and revise existing ones.
  • The amendments aim to avoid duplication or conflict between different statutory regimes.
  • The use of negative procedure is justified as technical changes to maintain clarity and prevent unnecessary parliamentary time.
  • Amendments 97 to 107 and 112 are proposed by the government.
  • Clause 288 covers the application process for ADR providers.
  • Clause 290 sets out sanctions for non-compliant ADR providers, including suspension or revocation of accreditation.
  • Clause 293 empowers the Secretary of State to issue enforcement notices against unaccredited ADR providers.
  • Clause 298 allows regulations to confer functions on persons other than the Secretary of State.
  • Clause 288 sets out how persons or companies wishing to become accredited ADR providers should apply.
  • The Bill lacks clarity on the procedure for accreditation and scrutiny process.
  • Amendment 97 clarifies new conditions imposed when extending an accreditation.
  • Government amendment 100 will make it clear that accreditation conditions can be worded to hold providers directly responsible for acts of other ADR providers under special arrangements.
  • Clause 292 allows criteria for ADR accreditation to be reviewed and modified as necessary.
  • Providers must meet high-level principles including accessibility, expertise, fairness, independence, impartiality, and transparency.
  • Current fees under the existing accreditation regime are charged at a pro rata daily rate of £750 by the Department for Business and Trade.
  • Amendments 97 to 112 are drafting amendments aimed at clarifying accreditation conditions, ADR information regulations, and other related provisions.
  • Clause 302 is about the provision of investigative assistance to overseas regulators.
  • Clauses 303 to 308 stand part and Schedule 25 is proposed as the Twenty-fifth schedule to the Bill.
  • Clause 302 introduces a power for UK regulators to assist overseas regulators in civil investigations or proceedings.
  • Three core requirements must be met before providing investigative assistance: function correspondence, appropriateness assessment, and Secretary of State authorization.
  • Clause 304 sets out conditions for assessing the appropriateness of assistance requests.
  • Clause 305 outlines factors the Secretary of State considers in deciding to approve a request for assistance.
  • Clause 302 enables UK regulators to assist overseas regulators.
  • The Secretary of State must publish general authorisations for requests from overseas regulators.
  • CMA will prepare and publish guidance on making and considering requests for investigative assistance.
  • Clause 310 introduces a statutory duty of expedition in relation to specified CMA competition, consumer law, and digital markets functions.
  • The new duty applies to casework functions and decision making but excludes auxiliary functions such as the publication of guidance.
  • Sectoral regulators will also be under an equivalent duty when exercising concurrent competition powers.
  • The Federation of Small Businesses (FSB) has raised concerns about the provisions in the Bill.
  • Sky, with 12,000 jobs focused on this issue, expressed concern over unexpected changes in requirements.
  • The Government's impact assessment suggests costs of £400 million to set up and £1.2 billion in the first year for businesses.
  • New Clause 1 allows the CMA to decide not to make a final offer order if there is a material change in circumstances.
  • The clause requires the CMA to give notice and publish a summary of reasons for such decisions.
  • New Clause 8 sets a limit on secondary ticketing.
  • New clause amends Consumer Rights Act 2015.
  • Duty to verify seller’s details includes proof of ticket ownership and accuracy of specified information.
  • Reporting requirement for Secretary of State within 12 months after Act is passed.
  • New clause 8 would ban sellers on secondary sites from selling more tickets than available on the primary market.
  • New clause 9 would require verification of seller details by secondary ticketing platforms.
  • New clause 10 requires a report on introducing a new regulatory function in the sector, recommended by CMA.
  • The new clause requires the CMA to prepare an annual report.
  • The report must cover the effectiveness of the CMA’s functions under Parts 2 and 3 of the Bill.
  • It must assess the impact on maintaining competition in digital markets and enforcing consumer protection law.
  • New clause 11 would introduce an annual reporting requirement for the CMA.
  • Clause 193 gives the Secretary of State the power to request reports from the CMA on consumer direct enforcement functions.
  • The CMA appears before relevant committees and meets with MPs regularly.
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