HC Deb 09 July 1973 vol 859 cc998-1002
6. Mrs. Sally Oppenheim

asked the Secretary of State for Trade and Industry what plans he has to introduce measures to comply with the Consumer Protection Charter adopted by the Council of Europe on 28th May 1973.

Sir G. Howe

The Government are in general accord with the spirit of this charter, which is being considered by the Committee of Ministers of the Council. In many respects the principles of the charter are already embodied in United Kingdom legislation.

Mrs. Oppenheim

Will my right hon. and learned Friend pay special attention to that article of the charter which refers to the minimum standards of safety in consumer products? In view of the startling rise in the number of children who have been treated in hospital in England and Wales for injuries from ordinary household products, will he consider bringing forward labelling regulations? I have been requesting this for some time. Will he say how much longer the talks on the EEC draft directive are likely to continue?

Sir G. Howe

I had anticipated that this would have been the provision with which my hon. Friend was particularly concerned, because I know of her close and persistent interest in the subject. She appreciates, of course, that this is the subject of the EEC directive, and the implications of that and the way in which it can be fitted into the United Kingdom scene are being studied not merely by the Government but by consumer and trade organisations too.

Mr. Heffer

Will the Minister urge that detailed information such as antecedent characteristics should be provided to the consumer under Article B(6) of the charter? This means, or should mean, that the origin of a product such as the shoes now produced for Dunlop in Taiwan, Spain and Pakistan—where cheap labour is used—should be taken into consideration. Is not the right hon. and learned Gentleman aware that this sort of thing is causing redundancy among the Dunlop workers in this country? While waiting for the charter, is he prepared to take steps to deal with the situation now?

Sir G. Howe

The point about origin marking of goods is outside the scope of the charter, which is concerned with information which is of guidance to the consumer for the consumption of the product. There are already many regulations dealing with this matter.

Mr. Heffer

Read the charter.

Sir G. Howe

I have read the charter. I have it here. I have taken account of the hon. Member's point, which is not covered by the original Question.

Mr. Alan Williams

The Minister said that the Government were in general agreement with the charter. Will he specify where they are in disagreement with it?

Sir G. Howe

There are no identifiable areas which I should like to mention. The Government agree with the spirit of the charter, but it covers a wide range of detailed matters which must be looked at on their merits.

10. Mr. Greville Janner

asked the Secretary of State for Trade and Industry whether he will institute a publicity campaign to advise buyers of their rights under the sale of goods legislation and of the fact that certain so-called guarantees and warranties in consumer contracts made on or after, but not before, 18th May 1973 are void.

Sir G. Howe

Frequent references to these matters have been made in all the media of publicity and a pamphlet has recently been published on the rights given to consumers by the Supply of Goods (Implied Terms) Act 1973. We have sought to make it clear that exclusion clauses in consumer contracts of sales of goods or in misleading "warranties" or "guarantees" are void.

Mr. Janner

Is the Minister aware that most people do not read his pamphlets and have no idea whether or not a clause is void. Is he also aware that the majority of manufacturers of radios, televisions, electrical goods and other products have not changed their guarantees or warranties? Will he make it illegal to foist these misleading and void documents upon the unsuspecting public?

Sir G. Howe

I am aware that we must use every possible means of making such matters known and understood. I have taken part in a number of broadcasts about the legislation, as has the hon. and learned Gentleman on at least one occasion. I am prepared to use every method, including this Question Time, to acquaint people with the effects of the legislation. My Department is in consultation with a number of trade associations, which are successfully advising their members to change their documents to eliminate misleading exclusion clauses. I have also made it clear in speeches on a number of occasions that, if exclusion clauses that are made void by the statute continue to be included, it will be a matter for the Director General of Fair Trading to consider at an early stage whether additional provision should be made to ban the use of such exclusion clauses.

Mrs. Sally Oppenheim

Does my right hon. and learned Friend agree that the excellent exposition which appeared in Which? magazine telling consumers of their new rights under the Supply of Goods (Implied Terms) Act should be blown up to poster size and exhibited in citizens' advice bureaux and town halls pending the enactment of the Fair Trading Bill, when the Director General himself will be able to publicise such things?

Sir G. Howe

I shall certainly consider my hon. Friend's suggestion. Copies of the pamphlet produced to explain the Act have already been supplied to citizens' advice bureaux.

Mr. Raphael Tuck

Has the Minister considered the advisability of making illegal the insertion of exclusion clauses, under heavy penalties?

Sir G. Howe

I have already considered that, as did the Law Commission when it prepared its report. It concluded that to make them illegal in general terms would not be acceptable, because some contracts deal with business contracts and consumer contracts in the same form. For that reason, it did not recommend what the hon. Gentleman suggests. But, as I have already made clear, it will be for the Director General of Fair Trading to consider proposing regulations to outlaw and prohibit the use of invalid exclusion clauses if traders and manufacturers do not respond to the provisions of the present legislation.

Mr. Alan Williams

Is not the Minister aware that too many manufacturers are still issuing "phoney" guarantees in the hope that they can mislead the public into thinking that their rights are less than they are? Does he accept that the best publicity would be a series of test cases? The Press could ensure that adequate publicity was given to them. How soon does the right hon. and learned Gentleman hope to introduce parallel legislation to extend protection from exclusion clauses to the service sector?

Sir G. Howe

I am not in control of whether and when test cases can be brought on the matter. I have made clear—and I am grateful to hon. Members for giving me a further opportunity to make clear this afternoon—that it will be for the Director General to consider whether the continued inclusion of such clauses should be proscribed by regulations under the Fair Trading Bill. Comparable provisions in respect of the supply of services are being considered by the Law Commission, and I know how urgently the House wants that matter to be completed. I have said that its recommendations are not likely to be available before the end of the year. I have also said that when they are available the Government will give them the most urgent consideration.