Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what information his Department collects on product recalls and corresponding safety actions.
Answered by Paul Scully
Businesses have a legal duty to notify their market surveillance authority where they have identified a safety issue with a product they have placed on the market and taken an action. In 2019, the Office for Product Safety and Standards (OPSS) launched the UK’s Product Safety Database which allows national and local authorities to notify unsafe products identified by businesses, in addition to other enforcement actions they have taken. Notifications include information on the product, its supply chain, the risks presented by the technical fault and the corrective action taken to reduce the risk to consumers. The database allows authorities to access and exchange data securely and effectively to ensure swift and appropriate action can be taken to protect consumers. In addition, OPSS publishes alerts on GOV.UK about unsafe products and recalls using information from the database.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with his Cabinet colleagues on the circular economy and the safety of products.
Answered by Paul Scully
In order to fully realise the significant benefits of a shift to a more circular economy, it is important that consumers can continue to have confidence in the safety of products as both supply chains and product design evolve. The Office for Product Safety and Standards (OPSS) is currently reviewing the UK’s product safety framework and its recent Call for Evidence requested information from stakeholders on changes to product lifecycles, the circular economy and the impact on product safety. The review will seek to ensure that the product safety framework can adapt to any emerging risks and a Government Response to the Call for Evidence will be published in due course.
Alongside its Call for Evidence, OPSS has commissioned research to further build our evidence base, including on second-life batteries and on the use of recycled materials in consumer products. The OPSS research programme will continue to address issues related to the transition to a circular economy.
OPSS and Defra officials are in regular contact to ensure a coordinated approach to the development of a circular economy and consumer safety.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential merits of a common mobile phone charger.
Answered by Paul Scully
The forthcoming Energy-related Products Policy Frameworkis due to be published by the Government shortly.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what repercussions overseas third-party toy sellers face when they sell unsafe toys to children in the UK.
Answered by Paul Scully
The Government is committed to ensuring that only safe consumer products can be sold in the UK. Product safety legislation places obligations on manufacturers, importers and distributors and this includes overseas online retailers selling goods via marketplaces.
Where products are identified online that do not meet the UK’s product safety requirements, the Office for Product Safety and Standards (OPSS) works with colleagues in local Trading Standards to take action and expects online platforms to act quickly to remove them from sale. This has recently included action to ensure that a number of non-compliant products, including toys, being sold by third-party sellers have been removed from sale, delisted, recalled or destroyed.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that third-party toy sellers are traceable and accountable for products sold via online marketplaces to children in the UK.
Answered by Paul Scully
The Government is committed to ensuring that only safe consumer products can be sold in the UK. Product safety legislation places obligations on manufacturers, importers and distributors and this includes overseas online retailers selling goods via marketplaces.
Under the UK Toys (Safety) Regulations 2011, a toy must be marked with the name of the UK-based manufacturer or UK-based importer, and the address at which they can be contacted. Where this is not possible on the toy, the relevant information must be present on the toy’s packaging or in an accompanying document.
The Office for Product Safety and Standards (OPSS) is taking forward a programme of work to ensure that major online marketplaces are playing their part to protect UK consumers from unsafe goods sold via third parties. OPSS works with colleagues in local Trading Standards to take action where products are identified online that do not meet the UK’s product safety requirements and expects online platforms to act quickly to remove them from sale. This has recently included action taken to ensure that a number of non-compliant products, including toys, being sold by third-party sellers have been removed from sale, delisted, recalled or destroyed. In addition, we are developing a new voluntary commitment for online marketplaces to agree further actions they will take to reduce the risks from unsafe products being sold online.
OPSS is also currently conducting a review of the UK’s product safety framework, including in relation to e-commerce, to ensure it remains fit for purpose, protects consumers, and enables businesses to innovate and grow. The Government issued a public Call for Evidence to support the review which closed on 17 June. Officials are currently reviewing the evidence received and we will publish a response in due course.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the adequacy of legislation on ensuring that toys manufactured overseas carry the address of a UK entity responsible for product safety compliance.
Answered by Paul Scully
Where toys manufactured overseas are placed on the UK market, a UK-based importer must ensure that their name or trade name and address are marked on the product.
However, the Government recognises the challenge of third-party sales, where the retailer is based overseas. OPSS is currently conducting a review of the UK’s product safety framework, including in relation to e-commerce and supply chain responsibility, to ensure it remains fit for purpose, protects consumers, and enables businesses to innovate and grow. The Government issued a public Call for Evidence to support the review which closed on 17 June. Officials are currently reviewing the evidence received and we will publish a response in due course.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent steps (a) his Department and (b) Ofgem has taken to avoid the risk of mutualisation of the cost of customer credit balances in the event of energy supplier failure.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
Ofgem have strengthened checks at market entry to ensure that suppliers understand their obligations and have the appropriate arrangements in place to operate in the retail energy market (introduced from July 2019).
In January this year Ofgem introduced a suite of new rules to ensure that suppliers act in a financially responsible manner and do not take actions that may result in their competitors and consumers facing increased costs should they fail. Ofgem are currently consulting on further measures that would require suppliers to automatically refund customers’ credit balances every year, and protect any amounts they hold above a certain threshold.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment (a) his Department and (b) Ofgem has made of the potential disproportionate effect on (i) vulnerable and (ii) less-able-to-pay consumers of the mutualisation of costs from energy supplier failures.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
Keeping down bills and protecting vulnerable consumers remains a key focus for Government and Ofgem. For example, the Government’s Warm Home Discount and Energy Company Obligation schemes are focussed on reducing bills for vulnerable households.
When a supplier fails and Ofgem appoints A Supplier of Last Resort (SoLR), they carefully consider the ability of the incoming supplier to effectively serve the new customers, including those in vulnerable circumstances. Very rarely does the appointment of a SoLR involve mutualisation of the costs of onboarding the customers.
Mutualisation of unpaid supplier bills under the Renewables Obligations support scheme, is now less likely to occur. The Government recently restored the link between the threshold at which mutualisation occurs and the annual cost of the scheme, making the threshold much higher. We will also be consulting soon on the wider matter of supplier payment default under the Renewables Obligation, which will consider both regulatory and legislative approaches.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, how many energy suppliers have been investigated by Ofgem for the purpose of Ofgem undertaking its financial responsibility to protect customers against mutualisation of costs in the event of energy supplier failure.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
Ofgem closely monitors suppliers’ ability to meet their customer service and financial obligations. Ofgem are actively implementing the new rules in relation to financial responsibility, and will take action where there is a risk of consumer detriment. A range of tools is available to tackle poor behaviour, including enforcement action.
Mutualisation mechanisms play an important role in supporting the effective functioning of the energy market. Ofgem aims to ensure that suppliers do not behave in a manner that increases the likelihood or scale of costs to be mutualised across their competitors, and ultimately consumers, if and when they fail.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential effect of energy suppliers using customer credit balances to fund low-cost acquisition tariffs.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
Deliberately collecting more credit than is required to service customers, in order to fund acquisition tariffs, would be unreasonable and unsustainable.
In January this year, Ofgem introduced a suite of new rules to ensure that suppliers act in a financially responsible manner and do not take actions that may result in their competitors and consumers facing increased costs should they fail.
We await the outcome of Ofgem’s recent consultation on further measures that would require suppliers to automatically refund customers’ credit balances every year, and protect any amounts they hold above a certain threshold.