Schedule 5 - Investigatory powers etc.

Part of Consumer Rights Bill – in a Public Bill Committee at 10:30 am on 11 March 2014.

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Photo of Stella Creasy Stella Creasy Shadow Minister (Business, Innovation and Skills) 10:30, 11 March 2014

That is very good to hear. We have “rate my trader” websites and a number of informal mechanisms for hearing about good traders. The amendment would create a framework for bringing together consumers who have real concerns about a trader so that they could take action together. If in a year’s time what the hon. Gentleman thought had been fantastic work was leaking because the roof had not been laid properly, he could work with fellow consumers to bring a case.

Such a provision seems to be a way to bridge the gap. Although no one wants to see an American-style litigation culture in the UK, we want to give consumers a stronger ability to exercise their rights. If they have a right under common law to seek redress against an individual, they could do so collectively. If the trader was consistently behaving in such a fashion, it would strengthen their case. It could provide a format for providing information to ombudsmen and regulators. If a number of consumers were clubbing together to complain about a particular person or a particular trader, they could be flagged up as higher-risk.

We recognise that the disclosure system would need some safeguards against vexatious complainants. I am sure we have all dealt with constituents who have complained about a trader when it has not been merited. We would also want to prevent traders from using the system in an anti-competitive way to complain about their competitors. We therefore think that Trading Standards could act as that filter. Indeed, Citizens Advice is already piloting a scheme like that to try to bring together consumers so they can seek private redress. That is a very welcome development. We think it would have been appropriate to put provisions in the Bill to give consumers the right to act in that way and a mechanism to facilitate it.

The amendment simply seeks a report into how such a system could be put into place. It would not commit the Government to anything but is intended to explore how we might learn from that best practice from Citizens Advice and how we might link with Trading Standards to provide a disclosure mechanism in a way that would provide protection from litigation, because it would be without disclosure. How does the Minister see the potential for such localised action—micro private action, to coin a phrase—to help consumers exercise their rights where individually legal redress would be prohibitive? Someone who has just spent their life savings of £15,000 having their loft converted probably does not have the money to chase the trader if the work has not been satisfactory. Finding a way to share the burden with others who have been affected by that trader seems a fair and reasonable thing to do. I hope that the Minister will accept the amendment in the spirit in which it was intended, which is a suggestion for a policy that could be developed further. Does she see any merit in bringing consumers together? If not, can she tell us why she does not feel we have a role to play in helping people seek individual redress in that way?