My Lords, we are circulating around the issues that come with the new trading activity of intangible goods. This amendment deals with the unique qualities of digital content which
are, as we have heard, often updated and upgraded, in some cases almost hourly and certainly on a regular basis, once someone has bought into the arrangement. Indeed, it may well be that some of these updates are a requirement to keep the program going. As we heard earlier, antivirus software has to be updated and changed simply to cope with the developments of hackers.
Our Amendment 40 would require a trader to take reasonable steps to inform a consumer if the trader becomes aware of faulty digital content. Many digital products containing complex software are released on the understanding that the item will not be 100% perfect, and certainly not when it is released. The details of coding and the size of the programs mean that it is not always possible to spot problems. Furthermore, the product often has to run on different operating systems and, as I have said, antivirus software has to be constantly updated. This clause would simply require providers to inform those who have downloaded a defective product about the problem as soon as they become aware of it so as to allow consumers to make an informed choice about their rights to repair or refund or, indeed, as we would argue, to return.
I think that the Government accept that the software industry needs the flexibility to be able to publish and sell programs that contain minor problems. This is a good thing, as anything other than that would be unworkable, as we have heard. This flexibility is, as we have heard, not properly written into the Bill. The software industry has concerns, which the BIS Select Committee has reinforced, about requiring digital content to be free from minor defects. Our amendments would go some way towards resolving that. I beg to move.
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