Delivery Surcharges (Transparency for Consumers) Bill

Andrew Selous Excerpts

Friday 13th September 2013 Commons Chamber

[Mr Christopher Chope (Christchurch) (Con)]

This is an example of a private Member’s Bill that is well suited to raising the issue, having a proper discussion and getting a response from a Minister. I note that the Minister offered to have a delivery charges summit under her chairmanship. I hope that the promoter of the Bill thinks that that will be a sufficient reward for having been successful in the private Member’s Bill ballot.

I do not think that introducing new regulations with criminal sanctions against those who break the regulations is the way to improve matters. Of course, by shopping online one probably undermines the viability of many of one’s own local retailers, and if we want to campaign for small shops in rural areas we do not necessarily want to encourage people to engage in online retail. However, I do not think that there is anywhere in the retail world that is more competitive than online. I recently visited a shop in Christchurch that supplements direct retail with online retail. The proprietor told me about a product called “Bananarama”. Unless the shop is the cheapest online retailer of that product, they will not make any sales. The proprietor showed me at least 20 or 30 examples of where the product was available for sale, and the cut-throat way in which it was being sold. That shows the benefits of healthy competition. If an online retailer is alienating his customers by not providing clear information about delivery charges, then he is unlikely to stay in business for very long.

[Andrew Selous (South West Bedfordshire) (Con)]

Will my hon. Friend enlighten the House as to what “Bananarama” is?

[Mr Chope]

“Bananarama” is a sophisticated form of Scrabble, which comes in a small package. I think the pieces are yellow, but that is enough publicity for that product.

The Bill is an example of where people come forward and say, “There is a problem, therefore we must have more legislation”, but are we really going to start penalising online retailers by saying that if they do not provide all the information upfront as soon as the customer clicks on to their website, they will be subject to a criminal assessment? Apart from anything else, common sense dictates that it is only at the end of a transaction that one knows the bulk and scale of the products ordered. The retailer may offer a range of different products, some of which can be delivered by Royal Mail and some that might need to be transported by an elephant. It is only at the end of the transaction that the online retailer will be in a position to say what will be a reasonable charge.

The Bill, therefore, is completely over the top. It states that the Government would have to introduce regulations, thereby transferring responsibility for drafting from my hon. Friend the Member for West Aberdeenshire and Kincardine (Sir Robert Smith) to the Government. I just wonder how the Government would ever be able to introduce regulations requiring online retailers to include a clear statement of, for example, “a reasonable indication” of the total cost. What do we mean by “a reasonable indication”? Do we mean an approximate indication or a reasonable guess?

The Bill is riddled with anomalies and problems. I have always been a great believer in putting bad legislation out of its misery at the earliest possible stage, so I have no compunction in saying that I will be doing the House a great service if I ensure that the Bill does not have its Second Reading. It is ill-conceived and the wrong way to address the problem. I do not represent a rural constituency, but there are a lot of online retailers and they do not want to be burdened with the excessive regulations proposed in the Bill. Apart from anything else, and as so often happens with such proposed legislation, it would be counter-productive. Clause 1 requires that the online retailer sets out what the charges will be. An outline retailer would be able to avoid all the burden of this Bill by saying at the beginning that it did not sell goods to islands in Scotland or England, such as the Isles of Scilly or the highlands and islands, or the Isle of Man. That could be counter-productive, because people who live in those more remote areas want to have access to goods, but they recognise that the other side of the coin of living in a remote rural area is that delivery charges are higher. I do not think that anyone has suggested yet in this debate, and perhaps in due course they will, that there should be cross-subsidy of those—