i e CONSUMER PROTECTION (AMENDMENT) BILL 2015
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- Lenard Wilkerson
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1 i e CONSUMER PROTECTION (AMENDMENT) BILL 0
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3 CONSUMER PROTECTION (AMENDMENT) BILL 0 Explanatory Memorandum. This Bill is promoted by Mr Quirk on behalf of the Counil of Ministers.. Clauses, and deal with introdutory matters. Clause gives the short title of the resulting At, lause deals with the ommenement of the At, and lause with the At s expiry one it has been promulgated and all of the amendments to the Consumer Protetion At ( the At ) have taken effet.. Part ontains a series of amendments to the At, whih are introdued by lause. In the following paragraphs of this Memorandum a referene to a setion is to that setion of the At.. Clause repeals setion whih is of no pratial utility.. Clauses and amend referenes to offiers as a onsequene of the hanges made to the interpretation provision by lause 0()(b).. Clause amends setion to redefine the sope of Part VII. It makes it lear that the Part will not apply to an exepted ontrat (as defined in Shedule B to the At, added by lause ) or to ontrats, persons or irumstanes presribed by an order under the new subsetion (C).. Clause inserts a new setion A whih makes it an offene for a trader to enter into a relevant ontrat (as defined in the substituted setion ()).. Clause 0 amends setion dealing with the anellation of a ontrat. The prinipal hange is the extension of the time within whih a onsumer may give notie of anellation from to days. The lause also alters the point from whih time runs to reflet the possibility that the notie informing the onsumer of the right to anel may not be given at the time the ontrat is onluded in ases where the onsumer and trader onlude the ontrat over the telephone or using other eletroni means.. Clause amends setion A to reflet other hanges made by the Bill, but also re-ategorising the offene under setion A() to an either way offene and inreasing the penalty on summary onvition to months ustody and a fine of 0, Clauses and onsequentially amend setions B and C to reflet the introdution of lause A.. Clause inserts a new provision enabling an offier of OFT to make test purhases for the purposes of enforing Part VII inluding the new provisions.. Clause amends setion D, partly to reflet other hanges made by the Bill but also to make it lear that the power to require douments for the purposes of an investigation inludes the power to require the provision of information
4 Explanatory Memorandum Consumer Protetion (Amendment) Bill 0 whih is not in doumentary form and where information is reorded in a form whih is not legible, the person produing it may be required to make it available in legible form.. Clause makes amendments to lause E onsequent on other hanges in the Bill.. Clause extends the restrition on ontrating-out of the terms of Part VII, or seeking to make the proper law of a relevant ontrat the law of a plae outside the Island.. Clause amends the interpretation provisions in setion : the provisions apply for the purposes of Part VII.. Clause amends setion A to larify that Part VIIIA (distane selling) of the At does not apply to a relevant ontrat (as defined in the substituted setion ()) made as the result of a telephone all by or on behalf of the trader to the onsumer whih the onsumer neither initiated nor requested.. Clause 0 amends the general interpretation provision in setion 0 to adjust the definition of offier and to replae the definition of Board with a definition of OFT as the Offie of Fair Trading.. Clause amends the marginal note in respet of setion to make it somewhat more transparent as to its purposes, whih are to preserve the rights of a person being investigated so far as they relate to legal professional privilege and the right not to inriminate oneself or one s spouse or ivil partner.. Clause inserts a new setion A whih will enable the OFT to amend the At to reflet future hanges in legislation in the United Kingdom and to apply, as part of the law of the Island and subjet to any neessary modifiations any relevant UK subordinate legislation. 0. The Bill has no finanial or manpower impliations.. In the opinion of the member moving the Bill its provisions are ompatible with the Convention rights within the meaning of the Human Rights At 00. Page iv
5 Consumer Protetion (Amendment) Bill 0 Index e CONSUMER PROTECTION (AMENDMENT) BILL 0 Index Setion Page PART INTRODUCTORY Short title... Commenement... Expiry... PART AMENDMENT OF THE CONSUMER PROTECTION ACT Amendment of the Consumer Protetion At... Setion repealed enforement (Parts II and III of the Consumer Protetion At )... Setion amended... Setion amended... Setion amended ontrats to whih Part VII applies (anellation of ertain ontrats)... Setion A inserted offene to enter into ertain ontrats... 0 Setion amended anellation of ontrat... Setion A amended failure to provide notie of anellation rights... 0 Setion B amended defene of due diligene... 0 Setion C amended liability of persons other than the prinipal offender... 0 New setion CA test purhases... 0 Setion D amended enforement powers... Setion E amended obstrution of OFT s offiers... Setion substituted no ontrating-out... Setion amended interpretation of Part VII of the Consumer Protetion At... Setion A amended ontrats to whih this Part applies... 0 Setion 0 amended and assoiated onsequential amendment interpretation: general... Setion amended self-inrimination and legal professional privilege... New setion A appliation to the Island of ertain subordinate legislation and power to amend the Consumer Protetion At... Page
6 Index Consumer Protetion (Amendment) Bill 0 New Shedule B inserted meaning of exepted ontrat for the purposes of setion... Page
7 Consumer Protetion (Amendment) Bill 0 Setion e CONSUMER PROTECTION (AMENDMENT) BILL 0 A BILL to amend the Consumer Protetion At in respet of old alling and the anellation of ertain ontrats; and for onneted purposes. BE IT ENACTED by the Queen s Most Exellent Majesty, by and with the advie and onsent of the Counil and Keys in Tynwald assembled, and by the authority of the same, as follows: 0 0 PART INTRODUCTORY Short title The short title of this At is the Consumer Protetion (Amendment) At 0. Commenement () This At (other than this setion and setion ) omes into operation on suh day or days as the Isle of Man Offie of Fair Trading by order appoints and different days may be appointed for different provisions and for different purposes. () An order under subsetion () may make suh onsequential, inidental, transitional and saving provisions as the Isle of Man Offie of Fair Trading onsiders neessary or expedient. Expiry () This At expires (a) on the day after its promulgation if all of its provisions are in operation on its promulgation; or (b) otherwise, on the day after the last provision is brought into operation. () The expiry does not (a) revive any enatment amended by this At as the enatment operated before the amendment ommened; (b) revive anything not in operation or existing when the amendment took effet; or Page
8 Setion Consumer Protetion (Amendment) Bill 0 () affet the ontinuing operation of the amendment PART AMENDMENT OF THE CONSUMER PROTECTION ACT Amendment of the Consumer Protetion At The Consumer Protetion At is amended in aordane with setions to. Setion repealed enforement (Parts II and III of the Consumer Protetion At ) Setion is repealed. Setion amended In setion () for a duly authorised offier substitute «an offier». Setion amended In the heading to setion for authorised offier substitute «offier of OFT». Setion amended ontrats to whih Part VII applies (anellation of ertain ontrats) () Setion is amended as follows. () For subsetion () substitute «() This Part applies to a ontrat (a relevant ontrat ) between a onsumer and a trader whih is for the supply of goods or servies to the onsumer by a trader and whih is made (a) during an unsoliited visit by the trader to the onsumer s home or plae of work, or to the home of another individual; (b) during an exursion organised by the trader away from the trader s permanent or temporary business premises; () as the result of a telephone all by or on behalf of the trader to the onsumer whih the onsumer neither initiated nor requested; or (d) after an offer made by the onsumer during suh a visit, exursion or telephone all. (A) Subsetion () is subjet to the qualifiations in subsetions (B) and (C). Page
9 Consumer Protetion (Amendment) Bill 0 Setion 0 (B) This Part does not apply to an exepted ontrat. (C) OFT may by order presribe (a) ontrats to whih this Part does not apply; (b) persons or lasses of persons to whose ontrats this Part does not apply; () other irumstanes where this Part is not to apply. An order under this subsetion may amend or repeal any provision of this Part (inluding a provision ontained in Shedule B) if it appears to OFT to be neessary or expedient to do so in onsequene of or in onnetion with the provision made by the order.». () For subsetions () and () substitute «() Shedule B has effet to define exepted ontrat». 0 0 Setion A inserted offene to enter into ertain ontrats After setion insert «A Offene to enter into ertain ontrats () A person ommits an offene if, as a trader, he or she enters into a relevant ontrat. () A person guilty of an offene under subsetion () is liable (a) on onvition on information, to ustody for not more than years, a fine or both; (b) on summary onvition, to ustody for a term not exeeding months, a fine not exeeding 0,000, or both.». 0 Setion amended anellation of ontrat () Setion is amended as follows. () In subsetion () (a) for No ontrat to whih this Part applies shall be substitute «A relevant ontrat is not»; and (b) for days substitute «days». () For subsetion () substitute «() The notie must be dated and delivered to the onsumer (a) if the onsumer and the trader are in the same plae when the ontrat is made, at the time the ontrat is made; and (b) in any other ase within hours of the time at whih the ontrat is made.» Page
10 Setion Consumer Protetion (Amendment) Bill 0 () In subsetion () for the words preeding a notie in writing substitute «If within the period of days (a) following the making of the ontrat in a ase falling within subsetion ()(a); or (b) following the delivery of a notie under subsetion () in a ase falling within subsetion ()(b), the onsumer serves» Setion A amended failure to provide notie of anellation rights () Setion A is amended as follows. () In subsetion () (a) for a ontrat to whih this Part applies substitute «a relevant ontrat»; and (b) omit (or, in the ase mentioned in subsetion ()(), has failed). () In subsetion () (a) after paragraph (a) «and» is inserted; and (b) paragraph () and the and immediately preeding it are repealed. () For subsetion () substitute «() A person guilty of an offene under subsetion () is liable (a) on onvition on information to ustody for a term not exeeding years, a fine or both; (b) on summary onvition, to ustody for a term not exeeding months, a fine not exeeding 0,000 or both.». () Subsetion () is repealed Setion B amended defene of due diligene In setion B() for setion A substitute «setion A or A». Setion C amended liability of persons other than the prinipal offender In setion C() and () for setion A substitute «setion A or A». New setion CA test purhases After setion C insert Page 0
11 Consumer Protetion (Amendment) Bill 0 Setion «CA Test purhases OFT may make suh purhases of goods, and seure the provision of suh servies, as may appear expedient for the purpose of determining whether or not the provisions of this Part are being omplied with.». Setion D amended enforement powers () Setion D is amended as follows () In subsetion () (a) for a duly authorised offier substitute «an offier»; and (b) for setion A substitute «setion A or A». () After subsetion () insert «() In this setion doument inludes information reorded in any form. () The referene in subsetion () to prodution of douments is, in the ase of a doument whih ontains information reorded otherwise than in a legible form, a referene to the prodution of a opy of the information in a legible form.». Setion E amended obstrution of OFT s offiers () Setion E is amended as follows () In subsetion ()() omit authorised. () For the setion heading substitute «Obstrution of OFT s offiers». Setion substituted no ontrating-out For setion substitute «No ontrating-out () A term ontained in a ontrat is void if, and to the extent that, it purports to disapply this Part (or any of its provisions) if this Part would otherwise apply. () A term ontained in a relevant ontrat is void if, and to the extent that, it would (a) make the proper law of the ontrat the law of a plae outside the Island; or (b) require any matter to be determined otherwise than by arbitration or by the Manx ourts. () For the purposes of subsetion ()(b) Page
12 Setion Consumer Protetion (Amendment) Bill 0 arbitration is to be onstrued in aordane with the Arbitration At ; and the Manx ourts means (a) the High Court; (b) the Judiial Committee of the Privy Counil; and () the Court of Justie of the European Communities.» Setion amended interpretation of Part VII of the Consumer Protetion At () Setion is amended as follows. () In subsetion () (a) at the beginning of the alphabetial list of definitions insert «arbitration means arbitration in aordane with the Arbitration At ;» (b) omit the definition of harge on land ; () for the definition of onsumer substitute «onsumer means an individual who in making a relevant ontrat is ating for purposes whih an be regarded as outside his or her business;»; (d) for the definition of trader substitute «trader means a person who, in making a relevant ontrat, is ating in his or her business apaity and inludes anyone ating in the name or on behalf of the trader;»; (e) at the appropriate points in the alphabetial list insert the following definitions «relevant ontrat has the meaning given in setion ();»; «soliited visit has the meaning given in subsetion (A) (and unsoliited visit shall be onstrued aordingly);» «telephone all inludes (a) any form of voie ommuniation by means of a teleommuniation system; (b) any form of ommuniation omprising or inluding the transmission of sound by means of the internet;»; and «unsoliited visit see the definition of soliited visit above.». () After subsetion () insert «(A) A soliited visit is a visit by a trader, whether or not he or she is the trader who supplies the goods or servies, to a onsumer s Page
13 Consumer Protetion (Amendment) Bill 0 Setion home or plae of work or to the home of another individual, whih is made at the express request of the onsumer. But neither of the following is a soliited visit (a) a visit by a trader whih is made after he or she, or a person ating in his or her name or on his or her behalf (i) ontats the onsumer (otherwise than at the onsumer s express request) and indiates during the ourse of the ontat (either expressly or by impliation) that he or she, or the trader in whose name or on whose behalf he or she is ating, is willing to visit the onsumer; or (ii) visits the onsumer (otherwise than at the onsumer s express request) and indiates during the ourse of that visit (either expressly or by impliation) that he or she, or the trader in whose name or on whose behalf he or she is ating, is willing to make a subsequent visit to the onsumer; (b) a visit during whih a ontrat is made whih relates to goods or servies whih are materially different, either in nature or quantity, from those originally requested by the onsumer. (B) For the purposes of subsetion (A)(a) a visit is not soliited by virtue of the ontat or visit being preeded by advertising material whih the trader has delivered, or has aused to be delivered to the (a) onsumer s home; (b) onsumer s plae of work; or () home of another individual. (C) For the purposes of this setion advertising means any form of representation whih is made in onnetion with a business in order to promote the supply or transfer of a produt or servie; and ontat inludes (without limiting the breadth of that word) ontating by telephone or by means of an eletroni ommuniation within the meaning of setion of the Eletroni Transations At 000.». Setion A amended ontrats to whih this Part applies After setion A() insert «() This Part does not apply to a relevant ontrat made in the irumstanes set out in setion ()().» Page
14 Setion 0 Consumer Protetion (Amendment) Bill Setion 0 amended and assoiated onsequential amendment interpretation: general () Setion 0() is amended as follows (a) omit the definition of the Board. (b) for the definition of offier substitute «offier means a person authorised in writing to assist OFT in disharging its funtions under this At;» and () after that definition insert «OFT means the Isle of Man Offie of Fair Trading;». () Consequent upon subsetion ()(a) and (), for the Board in every other plae where that phrase ours in the Consumer Protetion At substitute «OFT». Setion amended self-inrimination and legal professional privilege For the marginal note immediately preeding setion substitute «Self-inrimination and legal professional privilege». New setion A appliation to the Island of ertain subordinate legislation and power to amend the Consumer Protetion At After setion insert «A Power to amend At and apply ertain subordinate legislation of the United Kingdom () OFT may by order (a) modify this At in suh manner as appears to it expedient for the purpose of making this At orrespond (subjet to suh modifiations as it onsiders appropriate) with the orresponding legislation of the United Kingdom; (b) apply to the Island as part of the law of the Island, subjet to suh modifiations as may be speified in the order, any subordinate legislation of the United Kingdom onerning matters relating to onsumer protetion. () An order under subsetion () may inlude provision repealing or amending any provision of an enatment whih is inonsistent with, or is unneessary or requires modifiation in onsequene of, the order or any subordinate legislation of the United Kingdom applied to the Island by the order. Page
15 Consumer Protetion (Amendment) Bill 0 Setion 0 () An order under subsetion ()(b) may do all or any of the following (a) speify the modifiations subjet to whih the subordinate legislation of the United Kingdom applies to the Island; (b) set out the subordinate legislation of the United Kingdom applied by the order, inorporating the modifiations subjet to whih it applies to the Island; () in the ase of an order applying subordinate legislation of the United Kingdom whih amends previous subordinate legislation of the United Kingdom applied to the Island, set out the previous legislation so applied as amended, inorporating the modifiations subjet to whih that legislation applies to the Island. () In this setion referenes to legislation of the United Kingdom inludes referenes to legislation applying in any part of the United Kingdom.». 0 New Shedule B inserted meaning of exepted ontrat for the purposes of setion After Shedule A (list of terms whih may be regarded as unfair) insert «Shedule B MEANING OF EXCEPTED CONTRACT FOR THE PURPOSES OF SECTION [SECTION ()] 0 Meaning of exepted ontrat A ontrat is an exepted ontrat if it is within any of the following paragraphs. Land transations () A ontrat is within this paragraph if it is one (a) for the sale or other disposition of land, or any estate or interest in land (inluding a harge on land); (b) to finane the purhase of land; () for a bridging loan in onnetion with the purhase of land; or (d) for the onstrution or extension of a building or other eretion on land. Page
16 Setion Consumer Protetion (Amendment) Bill 0 In paragraph (a), harge on land inludes any seurity harged on land. () But a ontrat is not within this paragraph if it is a ontrat for the supply of goods and their inorporation in any land or a ontrat for the repair or improvement of a building or other eretion on land, where the ontrat is not finaned by a loan seured by a land mortgage Deliveries by roundsmen A ontrat is within this paragraph if it one for the supply of food, drink or other goods intended for urrent onsumption by use in the onsumer s household and supplied by regular roundsmen. Routine atalogue sales () A ontrat is within this paragraph if it is one for the supply of goods or servies whih satisfies all the onditions in subparagraphs () to (). () The ondition is that the terms of the ontrat are ontained in a trader s atalogue whih is readily available to the onsumer to read in the absene of the trader or his representative before the onlusion of the ontrat. () The ondition is that the parties to the ontrat intend that ontinuity of ontat will be maintained between the trader or his representative and the onsumer in relation to the transation in question or any subsequent transation. () The ondition is that both the atalogue and the ontrat ontain or are aompanied by a prominent notie indiating that the onsumer has a right (a) to return to the trader or the trader s representative goods supplied to the onsumer within the period of not less than days from the day on whih the goods are reeived by the onsumer; and (b) otherwise to anel the ontrat within that period without inurring any liability, other than any liability whih may arise from the failure of the onsumer to take reasonable are of the goods while they are in the onsumer s possession. Insurane ontrats A ontrat is within this paragraph if it is a ontrat of insurane. Page
17 Consumer Protetion (Amendment) Bill 0 Setion Low value ontrats A ontrat is within this paragraph if it is one under whih the total payments to be made by the onsumer do not exeed suh amount as may be presribed.». Page
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