📜 Delegated Legislation Committee

General Committees

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The UK Parliament’s committee discussed and approved regulations to update consumer protection laws as part of the Digital Markets, Competition and Consumers Act 2024. These updates enhance information sharing among regulators and strengthen enforcement against unfair trading practices. A Conservative MP raised concerns about data security and political subscription traps, but the Minister clarified that existing safeguards remain intact and distinguished between consumer and worker rights. The session concluded with the regulations being unanimously supported by the committee.

Summary

  • The session discussed the Draft Digital Markets, Competition and Consumers Act 2024 (Consequential Amendments) Regulations 2025, which makes updates to existing laws to align with the new Act passed in May 2024.

  • Justin Madders, the Parliamentary Under-Secretary of State for Business and Trade, explained that the regulations are necessary to ensure the smooth functioning of consumer protection laws by making minor but essential changes to legislation.

  • The regulations cover amendments in three main areas:
    • Extending information sharing among public authorities to help enforce new consumer protections introduced by the Act.
    • Updating the investigatory powers of the Competition and Markets Authority (CMA) to monitor compliance with new enforcement notices.
    • Updating references in the law to reflect the new provisions introduced by the Act, ensuring the legal framework remains current.
  • Greg Smith from Mid Buckinghamshire, who supported the changes, sought clarification on:
    • Data protection and security when sharing information under the new regulations.
    • The government’s stance on subscription traps, especially in comparison to trade union subscriptions.
  • In response, Madders clarified that:
    • Existing data protection safeguards will continue to apply, and these regulations simply update the legislative framework.
    • The government distinguishes between consumer subscriptions (like Netflix) and trade union memberships, arguing that they serve different purposes and should not be compared directly.
  • The committee agreed to the regulations, indicating support for the updates to enhance consumer protection and enforcement.

Divisiveness

The session exhibited a low level of disagreement, which was more in the form of seeking clarification and raising a political point rather than outright opposition. The key points of disagreement were centered around Greg Smith’s request for further clarity on data protection measures and his probing of the government’s stance on subscription traps, particularly in comparison to trade union subscriptions. These points were addressed by Justin Madders in a manner that showed minimal contention.

  • Data Protection Measures: Greg Smith asked about the protections for handling information securely. Justin Madders responded by affirming that the existing safeguards remain in place and are not altered by the regulations, thus swiftly addressing the concern.

  • Subscription Traps vs. Trade Union Subscriptions: Greg Smith used this as an opportunity to draw a political parallel between consumer subscription traps and trade union subscriptions, questioning potential double standards. Justin Madders responded by clearly distinguishing between the two, stating that trade union membership involves more than a simple subscription and is tied to collective rights at work, which is distinct from consumer rights addressed in the regulations. This was more of a political debate rather than a disagreement on the content of the regulations themselves.

Overall, while there was some political debate, the disagreements were minor and did not hinder the overall support for the regulations. The session concluded with the regulations being agreed upon unanimously, indicating low levels of opposition.