Question proposed, That the clause stand part of the Bill.

With this it will be convenient to discuss that clause 226 and 227 stand part.

It is a pleasure to serve with you in the Chair, Dame Maria. Clause 225 enables the Secretary of State to make new regulations for consumers to have a right to unwind, a right to discount and a right to damages. The regulations may cover, among other things, how such rights are to be exercised and when damages are to be payable. Before these regulations are made, the existing private redress provisions set out in the Consumer Protection from Unfair Trading Regulations 2008 will continue to apply. The first use of the power will be subject to the affirmative procedure, ensuring appropriate parliamentary scrutiny.

Clause 226 sets out how consumers can exercise their right to redress and allows consumers to undertake civil court action. Any legal claim must be brought within the time limit for simple contracts that applies under the Limitation Act 1980. If successful, a consumer will then have the right to unwind, the right to a discount, or the right to damages.

Clause 227 outlines the relationship between consumers’ private redress rights and other claims that are related to the prohibited practices of misleading actions and aggressive practices. It states that a consumer is not prevented from pursuing a claim under a rule of law, equity, or other legislation, but they cannot recover compensation twice for the same conduct.

It is a pleasure to serve under your chairship today, Dame Maria. I thank the Minister for his opening remarks. He covered how clause 225 confers a power on the Secretary of State to make regulations providing rights of redress to consumers, including the right to unwind relevant contracts, receive a discount, receive damages and so on.

The Opposition support the clause and recognise the need for further provisions for rights of redress, but why is that being left to secondary legislation? Does the Minister know when the Secretary of State may exercise this power? There is a danger of further delay. Why is this a power, rather than a duty? Perhaps the Minister can come back on why it was decided that the legislation be set out in this way. I can understand that there may be some reason to allow for further provision, but one would have thought that some measures would be brought in earlier.

Clause 226 sets out how a consumer can enforce their rights to redress, and I thank the Minister for his comments on it. Specifically, it sets out how a consumer with the right to redress by virtue of the regulations would be able to enforce their rights through making a claim in the civil courts. In Scotland, proceedings could be brought before the sheriff or the Court of Session. We welcome this clause in ensuring consumers have swift access to means of redress.

We also support clause 227, which would have the effect of avoiding double compensation, which is a common-sense and welcome provision.

For the avoidance of doubt, if anybody wants to remove their jacket, please feel free to do so. It is a little muggy in here.

I am very grateful. I have just a couple of points. Obviously, no gap will occur because of this, because the existing provisions are still effective until the provisions are replaced by any provisions made by the regulations. The reason for doing it like that is to create more flexibility around different measures that might need to be introduced. The world of consumers, consumer behaviour and activity providing services for consumers and goods is changing rapidly, so it makes sense to take a more flexible approach.

Question put and agreed to.

Clause 225 accordingly ordered to stand part of the Bill.

Clauses 226 and 227 ordered to stand part of the Bill.