Recommendations & Conclusions
16 items
2
Recommendation
Nineteenth Report - Protecting consumer…
Accepted
The OPSS has struggled to reach some businesses and consumers to prevent harm being caused by unsafe products. Businesses are responsible for ensuring that the products they make and sell are safe. The OPSS and local regulators therefore rely on influencing businesses to ensure they comply with the rules. Despite …
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The OPSS has struggled to reach some businesses and consumers to prevent harm being caused by unsafe products. Businesses are responsible for ensuring that the products they make and sell are safe. The OPSS and local regulators therefore rely on influencing businesses to ensure they comply with the rules. Despite issuing guidance and advice, the OPSS has found that 24% of businesses remain unaware of their product safety responsibilities. The OPSS struggles to reach smaller firms, such as home sellers, and to influence or support them to follow the relevant product safety regulations. The OPSS also aims to communicate directly and indirectly with consumers and make them aware of product safety risks, for example to encourage them to avoid buying unsafe goods, respond to recalls or use products correctly. However, only 17% of surveyed consumers consider product safety when making purchases. People from lower socio-economic groups may be at greater risk from unsafe products if they are more likely to purchase cheap or fake goods. The OPSS does not know which consumer groups are most at risk from unsafe products or how to reach these groups to make them aware of the potential dangers. Recommendation: The OPSS should develop a detailed plan for proactively communicating with and influencing industry and consumers. This should set out how different industry and consumer groups, including vulnerable and hard to reach demographics, will be targeted using different approaches.
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Government response AI summary
The government agrees with the recommendation that OPSS should develop a detailed plan for communicating with industry and consumers, including vulnerable groups, with a target implementation date of Spring 2022.
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HM Treasury
3
Recommendation
Nineteenth Report - Protecting consumer…
Accepted
There is insufficient coordination between the OPSS, local authorities and other parts of government. The OPSS works with a range of organisations to protect consumers from unsafe products, but the regulatory system is not well coordinated. The OPSS does not have a full picture of investigation and enforcement activity 6 …
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There is insufficient coordination between the OPSS, local authorities and other parts of government. The OPSS works with a range of organisations to protect consumers from unsafe products, but the regulatory system is not well coordinated. The OPSS does not have a full picture of investigation and enforcement activity 6 Protecting consumers from unsafe products by local Trading Standards services and is therefore unable to align its work with local intervention. The OPSS has introduced some welcome new forms of support to local authorities, such as providing training and ensuring that all services had free access to product standards from the British Standards Institution. However, there is more the OPSS can do to work with local regulators to improve the data it collects and the coordination of enforcement activities. The OPSS, the Department and other parts of government are also not sufficiently joined up in tackling cross- government issues such as staffing and capacity challenges in Trading Standards services. Looking ahead, there is also scope for the OPSS to improve its influence and effectiveness by working with international partners to take a leading role on product safety standards, and by learning from more established regulators on areas such as understanding vulnerable consumers and measuring impact. Recommendation: The OPSS should work with the Department and other parts of government to ensure the regulatory system is better coordinated. In particular, it should engage with MHCLG and other relevant departments to address concerns around the long-term sustainability of the Trading Standards workforce. In their update to this Committee, they should explain how they intend to resolve this issue.
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Government response AI summary
The government agrees to work towards better coordination of the regulatory system, outlining OPSS's support for Trading Standards through national capabilities, funding, and the development of a new apprenticeship, while continuing to inform central government discussions on workforce sustainability.
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HM Treasury
4
Recommendation
Nineteenth Report - Protecting consumer…
Accepted
Gaps in the regulatory framework make it harder to protect consumers from new risks presented by online marketplaces and emerging technologies. People increasingly purchase goods online, including through online marketplaces such as Amazon, eBay and Etsy which are now used by nine in ten adults who use the internet. Online …
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Gaps in the regulatory framework make it harder to protect consumers from new risks presented by online marketplaces and emerging technologies. People increasingly purchase goods online, including through online marketplaces such as Amazon, eBay and Etsy which are now used by nine in ten adults who use the internet. Online marketplaces are not responsible for the safety of products sold by third parties on their platforms. As many sellers are small operators working from their homes, or based abroad, regulators struggle to enforce safety regulations to the same extent as on the high street, due in part to gaps and limitations in their powers. These gaps make it harder to protect consumers, and can give online sellers an unfair competitive advantage over high street traders. Changes in product technologies present new risks but also opportunities. For example, an estimated 15% of products bought for the home now include ‘smart’ technology. Software in smart products can identify faults, prompt recalls or use updates to increase safety features, but may also be susceptible to hacking. The government faces a challenge in ensuring that regulations keep up with social and technological changes, and recently consulted on a major review of the regulatory regime that is considering how to respond to changes in product lifecycles and technologies. Recommendation: The Department and OPSS should write to us within six months to update us on the progress of their product safety review, and how and when they will address gaps in the regulatory framework. This should include a clear assessment of the key constraints the regime faces in regulating product safety through online marketplaces and keeping regulations up to date with changes in product technologies.
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Government response AI summary
The government accepts the recommendation and commits that OPSS will write to the Committee within six months to detail progress on its product safety review and how it will address regulatory gaps. It highlights ongoing work including research into emerging technologies and an expanded online …
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HM Treasury
5
Recommendation
Nineteenth Report - Protecting consumer…
Accepted
The regulatory system is lacking capacity and skills to meet the challenges it faces. Regulators need enough resources and the right mix of capabilities to be effective. Local authority Trading Standards services are a key element of the regime, as they still conduct most investigation and enforcement of product safety …
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The regulatory system is lacking capacity and skills to meet the challenges it faces. Regulators need enough resources and the right mix of capabilities to be effective. Local authority Trading Standards services are a key element of the regime, as they still conduct most investigation and enforcement of product safety regulations. But they face significant resourcing challenges. For example, in England they have had Protecting consumers from unsafe products 7 a 39% real-terms reduction in spending between 2010–11 and 2019–20. This has impacted the consistency of local product safety enforcement throughout the UK, as some services struggle to undertake any product safety regulation work which mean some consumers are at more risk of harm from dangerous products. The OPSS is a new and relatively small regulator facing multiple new challenges: EU Exit means new regulatory functions for the OPSS and additional goods to check at the border; UK regulators need to adapt to technological changes and new risks; and in 2022 the OPSS will be taking on new duties for regulating construction products on behalf of the Ministry of Housing, Communities & Local Government. Tackling these issues, and ensuring it will be an effective product safety regulator for the future, will require new capacity and skills, particularly in software, engineering and science. Recommendation: The Department and OPSS should evaluate the regulatory resource needed for the future of the regulatory regime. This should reflect the impacts of product checks at the UK border, the OPSS’s new duties on construction products and the loss of resource at local Trading Standards services.
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Government response AI summary
The government accepts the recommendation, stating that OPSS is currently reviewing the product safety framework with a target implementation date of Spring 2022. It highlights existing funding for border checks and construction product regulation, and commits to continuing to support local authorities.
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HM Treasury
6
Recommendation
Nineteenth Report - Protecting consumer…
Accepted
The government has not yet set out a clear vision and detailed plan for the future of UK product safety regulation. As well as ensuring there are the right skills and resources in place, it is also important for government to have a clear strategy to ensure the regulatory regime …
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The government has not yet set out a clear vision and detailed plan for the future of UK product safety regulation. As well as ensuring there are the right skills and resources in place, it is also important for government to have a clear strategy to ensure the regulatory regime is fit for purpose now and in the future. Developments in product technologies and consumers buying products online have resulted in new and changing risks to consumers. The UK’s exit from the EU also has implications for the wider regulatory framework—as well as repatriated regulatory functions previously carried out at EU level, the UK will no longer recognise the EU’s CE mark signifying compliance with standards, and there will be an expected increase in goods checking at the border. There are serious concerns over the sustainability of local Trading Standards services, the OPSS will need to contend with all of these issues while also taking on responsibility for regulating the safety of construction products. The government has consulted on a review of the product safety regime but has not yet set out its vision for how the OPSS, and wider regulatory system, will address these challenges, including whether and when the OPSS should become independent of the Department with its own statutory duties and powers. Recommendation: In their update to the Committee on the product safety review, the Department and OPSS should set out a timetable for the next UK product safety regulatory strategy. This strategy should set out clearly what type of regulatory system the UK will adopt to best combat the challenges it faces, and consider at what point the OPSS would be most effective as an independent regulator. 8 Protecting consumers from unsafe products 1 The OPSS’s regulatory operations
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Government response AI summary
The government agrees, stating that OPSS is creating a detailed regulatory strategy for UK product safety and standards, due for publication in Spring 2022, and will update the Committee on its progress by 30 March 2022.
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HM Treasury
7
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
However, data and intelligence are essential resources for regulators to identify emerging risks more quickly and decide what action to take in response. The OPSS described to us some useful data sources, such as its cosmetics database and fire and accident data. However, the OPSS acknowledged it needs to collect …
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However, data and intelligence are essential resources for regulators to identify emerging risks more quickly and decide what action to take in response. The OPSS described to us some useful data sources, such as its cosmetics database and fire and accident data. However, the OPSS acknowledged it needs to collect better data and insight to identify safety problems more effectively.8 This concern was echoed by the consumer body Which?, who stressed to us that the OPSS needs systems to collect, analyse and share data across the product safety regime to ensure a more proactive and intelligence- led approach.9 Similarly, the London Fire Brigade told us that better data on fires exists through insurance bodies and forensic investigators, but there are no formal reporting mechanisms and the regulatory regime relies on manufactures and other stakeholders to self-identify safety problems.10
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Government response AI summary
The government agrees and commits the OPSS to writing to the Committee within six months to detail progress made on its data strategy and the NHS data-sharing pilot, which is expected to be completed by Spring 2022.
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HM Treasury
8
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
The OPSS’s lack of data has slowed its response to some serious areas of harm, such as small, high-powered magnets that led to 40 paediatric admissions in the UK in 2020 alone. Issues with these magnets have been reported for a number of years, but the OPSS did not initiate …
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The OPSS’s lack of data has slowed its response to some serious areas of harm, such as small, high-powered magnets that led to 40 paediatric admissions in the UK in 2020 alone. Issues with these magnets have been reported for a number of years, but the OPSS did not initiate a response until 2021.11 It explained to us that it was first alerted to the issue by NHS paediatricians who had observed an increase in the number of operations to treat internal damage to children’s bowels. The OPSS is working to improve its intelligence base. For example, it is undertaking a pilot with five NHS hospitals to gather data on product-related injuries directly at the point of A&E. The OPSS noted the challenges in delivering this initiative, including building a consistent reporting mechanism which specifies important details on the causes of harm.12 The OPSS is also developing an overall data strategy, which the National Audit Office assessed as being a good start but less mature than in other parts of government.13 Influencing businesses and consumers
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Government response AI summary
The government agrees and commits the OPSS to writing to the Committee within six months to detail progress on its data strategy and the NHS data-sharing pilot, which is expected to be completed by Spring 2022.
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HM Treasury
10
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
The OPSS also aims to communicate with consumers, directly and indirectly through other organisations, to encourage them to avoid buying unsafe goods and use products correctly. It has produced consumer safety campaigns on specific products, such as fireworks and Halloween costumes, and works with consumer groups to raise awareness on …
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The OPSS also aims to communicate with consumers, directly and indirectly through other organisations, to encourage them to avoid buying unsafe goods and use products correctly. It has produced consumer safety campaigns on specific products, such as fireworks and Halloween costumes, and works with consumer groups to raise awareness on how to report product safety issues.17 Despite this, only 17% of consumers consider safety when purchasing a product, behind factors such as price and ease of purchase.18 The OPSS acknowledged that part of the challenge, particularly with goods sold online, is that consumers assume that if a product is on sale it must be safe, which is not always the case. It told us it is looking to make sure consumers that are buying products online have the relevant information, such as on where the product comes from and who has produced it, to make an informed choice.19
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Government response AI summary
The government agrees, highlighting successful past and ongoing consumer safety campaigns and a comprehensive consumer survey, and states it is planning to enhance understanding of consumers and businesses for a more proactive approach.
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HM Treasury
11
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
The London Fire Brigade told us that low-income households may face higher product safety risks, as they are more likely to purchase cheaper or counterfeit products.20 The OPSS said it aims to ensure that all products sold in the UK are safe, regardless of what price they are sold at …
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The London Fire Brigade told us that low-income households may face higher product safety risks, as they are more likely to purchase cheaper or counterfeit products.20 The OPSS said it aims to ensure that all products sold in the UK are safe, regardless of what price they are sold at and who they are being used by. It has undertaken limited research into how particular groups, such as older people, interact with products. However, it recognised that it has not yet articulated more generally which consumer groups are more vulnerable to product safety risks, when they are vulnerable, and how it can work to inform people of these risks. The OPSS and the Department accepted that they had more work to do to develop a strategy in this area and will learn from other regulators where possible.21 OPSS coordination with regulatory partners
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Government response AI summary
The government agrees with the committee's conclusion and plans to enhance its understanding of consumers and businesses by Spring 2022. This includes developing a more proactive approach to better protect vulnerable consumers from product safety risks.
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HM Treasury
12
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
The OPSS works with a range of organisations to protect consumers from unsafe products. For example, it provides expertise and support to local Trading Standards services and works with the British Standards Institution to help develop internationally- recognised product standards.22
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The OPSS works with a range of organisations to protect consumers from unsafe products. For example, it provides expertise and support to local Trading Standards services and works with the British Standards Institution to help develop internationally- recognised product standards.22
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Government response AI summary
The government details that OPSS runs a Business Reference Panel composed of over 200 trade organisations and individual businesses, as an example of its collaborative work to protect consumers.
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HM Treasury
13
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
There is a gap in the coordination between local and national regulation. The OPSS does not have a full picture of investigation and enforcement activity undertaken by local Trading Standards services, and is therefore unable to align its work with local intervention.23 The OPSS recognised it has more work to …
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There is a gap in the coordination between local and national regulation. The OPSS does not have a full picture of investigation and enforcement activity undertaken by local Trading Standards services, and is therefore unable to align its work with local intervention.23 The OPSS recognised it has more work to do to improve coordination with local regulators, and described some of the recent work it has done in this area. It introduced a new Product Safety Database to better share data within the regulatory system and told us this has led to a 600% increase in the number of data entries from local authorities, compared with the previous system. The OPSS has also introduced new forms of support to local authorities. This includes funding to ensure all services have free access to product standards from the British Standards Institution, and providing 4,000 officer days of training across 200 local authorities in the last three years.24 17 Qq 26, 37 18 Q 34; C&AG’s Report, para 2.9 19 Q 19 20 London Fire Brigade submission, page 1 21 Q 35 22 Q 23, 25 23 C&AG’s Report, para 3.13 24 Q 23 Protecting consumers from unsafe products 11
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Government response AI summary
The government agrees with the committee's conclusion that there is insufficient coordination and commits to addressing this by Spring 2022. OPSS is clarifying its offer to Trading Standards and provides funding and support to local authorities for product safety regulation.
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HM Treasury
14
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
Responding to the key challenges the regulatory system faces requires collaboration with other government departments. For example, the Department told us of its engagement with the Department for Digital, Culture, Media and Sport regarding cyber- security threats in products that contain software. It also noted that it is working with …
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Responding to the key challenges the regulatory system faces requires collaboration with other government departments. For example, the Department told us of its engagement with the Department for Digital, Culture, Media and Sport regarding cyber- security threats in products that contain software. It also noted that it is working with the Ministry of Housing, Communities and Local Government to mitigate resource constraints experienced by local Trading Standards services. It hopes this work will help government to better prioritise local regulatory services’ time and resource.25
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Government response AI summary
The government agrees, detailing its existing funding and support for National Trading Standards and Trading Standards Scotland, as well as OPSS's support for local services, and commits to continuing to inform central government discussions on their effectiveness.
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HM Treasury
17
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
The OPSS explained that, under current legislation, online marketplaces are not responsible for the safety of products sold by third parties on their platforms. This responsibility remains with the individual product sellers, who may be small home sellers or businesses based overseas that are harder to reach to ensure compliance.31 …
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The OPSS explained that, under current legislation, online marketplaces are not responsible for the safety of products sold by third parties on their platforms. This responsibility remains with the individual product sellers, who may be small home sellers or businesses based overseas that are harder to reach to ensure compliance.31 The OPSS told us that it has a dedicated team examining the safety of products sold online and has removed 5,000 unsafe product listings in the first three months of this year. Despite this, there is concern around gaps in regulatory powers to tackle the issue. Regulatory powers are limited over sellers based overseas if no UK business is involved in the supply chain, and local regulators experience legislative challenges in enforcing regulations on home sellers.32 The Department noted that regulation is also a challenge simply due to the large number of small sellers in operation. It recognised that these issues may have resulted in an unlevel regulatory playing field between online sellers and high street retailers, with the latter being subject to greater levels of regulatory enforcement.33
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Government response AI summary
The government agrees with the committee's conclusion regarding gaps in the regulatory framework for online marketplaces and states that OPSS is expanding its online investigation capabilities and establishing more robust approaches for third-party sellers outside the UK, with a target implementation date of Spring 2022.
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HM Treasury
20
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
The OPSS is still quite a new regulator with only a £14 million budget for product safety operations. The Department told us that it is providing additional funding for goods checking at the border, while the OPSS noted that additional resources and tools would be needed to effectively regulate the …
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The OPSS is still quite a new regulator with only a £14 million budget for product safety operations. The Department told us that it is providing additional funding for goods checking at the border, while the OPSS noted that additional resources and tools would be needed to effectively regulate the scale of products now sold online.36 The OPSS also stressed the importance of having adequate competences to regulate product safety into the future, particularly in areas such as science, engineering and emerging technologies. It pointed to recent work it has undertaken to build its capabilities in these areas, including recently appointing a scientific advisory group and working with academic institutions.37
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Government response AI summary
The government agrees that the regulatory system lacks capacity and skills, outlining its ongoing review of the product safety framework, provision of £1.45 million for border checks, dedicated funding for construction product activity, and efforts to develop internal capacity and support local authorities.
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HM Treasury
22
Recommendation
Nineteenth Report - Protecting consumer…
Accepted
As well as having the right skills and resources to address current and future challenges, it is important for government to have a clear strategy to ensure the overall regulatory regime is and remains fit for purpose. The OPSS will undertake a range of new regulatory functions following EU exit, …
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As well as having the right skills and resources to address current and future challenges, it is important for government to have a clear strategy to ensure the overall regulatory regime is and remains fit for purpose. The OPSS will undertake a range of new regulatory functions following EU exit, such as providing technical product safety input in UK trade negotiations, and there will be an expected increase in goods checking at the border. The Department also told us that it would have to respond to wider implications, such as the UK no longer recognising the EU’s CE mark signifying compliance with standards.40 Technological developments in products and how we buy them have resulted in new and changing risks to consumers, and there are concerns about the sustainability of local regulators.41 The OPSS recognised the importance of assessing its regulatory approach and current legislation, to examine whether the regime is fit for purpose.42
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Government response AI summary
The government agrees and states that OPSS is creating a detailed regulatory strategy for UK product safety and standards, due for publication in Spring 2022, and will update the Committee on progress by 30 March 2022.
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HM Treasury
23
Conclusion
Nineteenth Report - Protecting consumer…
Accepted
The OPSS’s review of the product safety regime, which it recently consulted on, is an opportunity for it and the Department to set a clear vision and strategy for the future of the regulatory regime. The recent call for evidence sought views on the current regulatory approach and whether it …
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The OPSS’s review of the product safety regime, which it recently consulted on, is an opportunity for it and the Department to set a clear vision and strategy for the future of the regulatory regime. The recent call for evidence sought views on the current regulatory approach and whether it is fit for the future. It covered several broad issues, including: product design, manufacture and placing on the market; new models of supply (including 35 Qq 22, 38–39, 49 36 Qq 38, 48 37 Qq 63 - 66 38 Qq 23, 54 39 Qq 14, 20, 23 40 Qq 21, 38–39; C&AG’s Report, para 4.5 41 Qq 19, 22–23, 54–55 42 Qq 19 14 Protecting consumers from unsafe products online); and new products and product lifecycles.43 The OPSS told us it has received over 100 responses and has spoken with stakeholders, including consumer groups and online platforms, to inform its future approach.44
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Government response AI summary
The government agrees and states that OPSS will detail progress on its plan for UK product safety regulation within six months of the PAC report, aiming for Spring 2022 implementation. It describes ongoing work including a regulatory strategy and expanded online investigation capabilities.
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HM Treasury