Contribution
My Lords, this instrument was laid before the House on 18 December 2024 and relates to the Digital Markets, Competition and Consumers Act 2024—the DMCC Act—which received Royal Assent in May 2024. The instrument makes amendments to legislation in consequence of Parts 3 and 4, and Chapter 2 of Part 5, of the Act.
Part 3 updates and strengthens enforcement of consumer protection law. Part 4 updates the legislative framework of consumer protections against unfair trading, introduces substantive new consumer rights in relation to subscriptions contracts and consumer savings schemes, and introduces reforms to alternative dispute resolution. Chapter 2 of Part 5 allows UK regulators to provide investigative assistance to overseas regulators in relation to competition, consumer protection and digital markets.
Many noble Lords contributed to this legislation through their scrutiny of it during its parliamentary passage, but I particularly thank the noble Lord, Lord Tyrie, who made the recommendations that led to the granting of the CMA’s new enforcement powers, and the noble Lord, Lord Offord of Garvel, who took the Bill, as it was then, through this House.
To ensure the provisions of the Act take effect as Parliament intended, it is necessary to make consequential amendments to the enactments listed in the Schedule to the regulations. These are relatively minor changes that do not materially alter policy but are needed to ensure the seamless functioning of consumer protection law and enforcement.
The amendments within the instrument fall into three broad categories. The first extends the application of legislative provisions that permit public authorities to share certain information with consumer enforcers. At present, persons or bodies that gather information using powers under certain statutes may share that information to facilitate consumer enforcement, consumer protection or overseas investigatory assistance, in certain circumstances.
This sharing is permitted by sections of the relevant statutes, which I will refer to as information gateways. These information gateways list the consumer protection legislation in relation to which information may be shared. For example, where Ofcom gathers information using powers in the Telecommunications Act 1984, the information gateway in Section 101 of that Act permits it to share that information with the Competition and Markets Authority for the purpose of enforcement of, among other things, the Consumer Protection from Unfair Trading Regulations 2008.
As I have already said, the DMCC Act introduces a new consumer enforcement framework, new and updated consumer protections, and new provisions on investigative assistance to overseas regulators. It is therefore necessary to add references to these provisions to the information gateways in various statutes. Were these provisions not to be updated, the current approach, whereby public authorities may share information gathered under statutory powers to facilitate consumer enforcement, consumer protection or overseas investigatory assistance, would be unavailable. This would compromise consumer protection, which could lead to consumer harm.
The second group of amendments is to Schedule 5 to the Consumer Rights Act 2015. These amendments ensure the CMA can use relevant investigatory powers in respect of its new direct enforcement powers. This will enable the CMA to monitor compliance with its direct enforcement notices as it currently can in relation to court enforcement orders. For example, at present, the CMA can require a person to provide information for the purposes of ascertaining whether a person is complying with a court enforcement order against them. This enables the CMA to ensure the enforcement orders are being complied with, and therefore that enforcement proceedings are having the desired effect. Under the DMCC Act, the CMA will also be able to use investigatory powers to monitor compliance with certain of its direct enforcement functions.
The DMCC Act introduces a new power for the CMA to give final enforcement notices for failing to respond to an information notice alongside its other direct enforcement powers. The amendments in these regulations are necessary to ensure that the CMA is empowered to monitor compliance with this new power in the same way as in relation to the rest of the court-based and direct enforcement regime.
Finally, this instrument updates references to consumer laws that have been repealed and replaced by the Act with references to the relevant new provisions introduced. These amendments do not materially change the policy or effect of the underlying law; they simply keep the statute book up to date in the usual way. As I hope is clear from my remarks, the intention of these regulations is to update and maintain the frameworks that underpin consumer law and its enforcement to ensure that the DMCC’s consumer reforms can be introduced seamlessly, with no inadvertent detriment to consumers.
I invite noble Lords to support the passage of this instrument. I commend these regulations to the Committee.