Consumers, Estate Agents and Redress Bill [HL]

This clause relates to contracts concluded away from business premises—namely, doorstep selling. The amendment would give the Secretary of State the power to provide for exceptions when he makes regulations giving consumers the right to cancel a contract entered into during a solicited visit to a consumer’s home or workplace. I do not believe there is a need for this clause to be amended to enable exemptions to be made in doorstep-selling regulations, because Clause 59(3) already does this. It includes provision for any regulations made under the Bill to apply generally or to be subject to exemptions and to make different provisions for different cases. In addition, as noble Lords will be aware, we will consult on the draft doorstep-selling regulations, including any exemptions—and including the ones mentioned by the noble Baroness, Lady Wilcox—this year. The existing doorstep-selling regulations already make different provisions for the effect of cancellation in some cases, such as the supply of perishable goods, goods to meet an emergency, or those already incorporated into the land when the consumer is obliged to pay for the goods and services in connection with their supply. Although I cannot say what exemptions or exceptions there might be at this time, I assure the noble Baroness that we will consult on the possible exemptions. On the opposition of the noble Baroness, Lady Wilcox, to Clause 58 standing part of the Bill, consumers have from 1987 been able to cancel a contract they have agreed with a trader in their home, on their doorstep or at their place of work within seven days, but only when the trader’s visit was not at their request. That is where the trader has knocked on their door unexpectedly or arrived following an unsolicited phone call. Consumers were given this right after all EU countries agreed the doorstep selling directive in 1985, because traders can catch consumers unawares and unprepared for a sales pitch. A surprise visit can also mean that the consumer is unable to shop around to compare the quality and price of the offer. It was therefore thought necessary to provide consumers with the safeguard of a cooling-off period to give them an opportunity to consider the offer carefully. However, it became clear over time that not providing cancellation rights for contracts agreed during a solicited visit to a consumer’s home is not a satisfactory situation. Many consumers find it difficult to say no to a trader in their home. Even when a consumer has invited the trader to visit them in their home, they can feel unduly pressured into signing a contract. Following the OFT report last September, this clause takes forward one of the recommended measures: extending cancellation rights to solicited sales visits to the consumer’s home or workplace. The measure was greatly supported by consumer and regulatory bodies, individual consumers and by most businesses which responded to the public consultation in 2004. It was also widely welcomed following the Government’s announcement in September of last year. Clause 58 allows the Government to make regulations providing cancellation rights for contracts that consumers sign with traders in their home or workplace, where the consumer has asked the trader to visit. This will provide the safety net of a cooling-off period for sales concluded with a trader in a consumer’s home or workplace, whether the trader’s visit is solicited or unsolicited. The powers in this clause can be used together with those under the European Communities Act 1972 to make a single set of regulations covering unsolicited visits, as required by the EU directive on doorstep selling, and solicited visits, as allowed under this clause. That will make the system simpler for consumers, businesses and enforcement bodies. For example, businesses will be able to use a single contract for all sales concluded in a consumer’s home or workplace.