My Lords, this clause aims to address a specific concern of consumer groups who have told us that, as a minimum, we should give some protection in legislation against free digital content that causes damage, as we discussed earlier. The clause aims to clarify that consumers have a right to a remedy for damage to their device or other digital content even in relation to free digital content, if it has been supplied under a contract. It addresses a concern that there may not be a clear course of action because free digital content is not covered by the quality rights.
We are all aware that digital content sometimes contains malware, such as computer viruses, that can damage the consumer’s device. Often this is as a result of the actions of rogue traders, but malware can also be introduced accidentally from legitimate sources. For example, in January, an American personal computer manufacturer notified its dealers that it had accidentally shipped at least 500 computers that contained the Michelangelo virus, which erases the computer’s hard disk, on 6 March, Michelangelo’s birthday. The virus had infected the computers from a third-party supplier whose software was bundled in the computers. The intention of this clause is to engage negligence principles. It gives consumers rights to a remedy for all contractually provided digital content which causes damage. The remedy would be a repair or an appropriate payment.
The noble Lord, Lord Stevenson, asked about freemium apps. I have already promised to write to him so I will ensure that this aspect is also covered in that letter. He also asked how one would calculate an appropriate payment for free digital content that causes damage. The payment is not a reduction in price of the original content. The financial remedy is to provide
compensation of an appropriate amount. We would expect this amount to be proportionate to the damage caused. If the damage has simply stopped the spellchecker within the word processor from working, the financial compensation would be very minor.