My Lords, as was said when we discussed point-of-sale information for goods last Monday, the Government believe that it is really important that consumers should feel confident about exercising
their statutory rights and that businesses should know and fulfil their statutory responsibilities. That is why, a year ago, we set up an implementation group for the Bill. This is helping us to decide how to increase consumer and business knowledge about consumer rights. The group has consumer, business and enforcer representatives working with us on a co-ordinated approach to content, channels and timing of guidance, advice and publicity for the Bill.
As part of their work, members of the implementation group have been developing a high-level summary of consumers’ rights when they buy goods, services and digital content. The summary will also signpost consumers to the Citizens Advice helpline and website—both sources of more detailed guidance on specific issues. We are in the process of testing this model with businesses and on consumers. The response from business has been positive, provided that use of the wording is on a voluntary basis.
Turning to Amendments 48A, 50E and 51, for the reasons explained when we discussed Amendments 9, 13 and 25 last week, we do not believe that requiring this information to be given to all consumers before they purchase or receive any goods or services, or after they purchase services, would achieve the best outcome for them or for businesses. First, we do not think there is any evidence to support the argument that the point of sale is the best place to inform consumers of their rights or that it is an important part of the purchasing decision. Consumers are more likely to focus on their rights when they need to enforce them. Secondly, it is difficult to see that consumers would see the benefit of being reminded that services must be delivered with reasonable care and skill whenever they visited the hairdressers or the carwash. Are we really suggesting that a local window-cleaner should provide his customers with a written notice setting out their relevant statutory rights? That seems pretty burdensome for both the trader and the consumer.
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Thirdly, the requirement to provide information both pre-contractually and post-contractually in written form seems really burdensome for small traders. Fourthly, some service sectors have specific regulatory requirements on consumer compensation. In these cases, it could be confusing to consumers if traders had to set out the general consumer law protections alongside the specific consumer rights required under sectoral regulation.
For these reasons, we do not think that it is right to require every business to provide information on consumer rights for goods and services. Our approach, which is supported by Which?, is to make available a trusted high-level summary that traders can adapt to their business needs. We have produced different forms of wording, depending on whether the purchase is made in a shop or online. The shop version makes it clear that consumers do not have a statutory right to change their mind, which is a common misconception. Businesses will be able to use the wording in full or incorporate only the elements relevant to their business. It will also help avoid shop floor staff causing unnecessary disputes by making mistakes and giving inaccurate information. For all those reasons, we expect businesses to see this
as a really helpful tool to comply with the new legislation. The business groups have told us that they will promote the model wording to their members, as will the consumer groups.
We believe that this flexible approach will be far more effective—and far less burdensome—than the mandatory approach proposed by these amendments. I note that the noble Baroness, Lady Oppenheim-Barnes, is not here to speak to her Amendment 51, but I ask the noble Baroness, Lady King, to withdraw her amendment.