Recommendations & Conclusions
7 items
1
Conclusion
Nineteenth Report - Protecting consumer…
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Business, Energy and Industrial Strategy (the Department), including its Office for Product Safety and Standards (the OPSS), on product safety regulation in the UK.1
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On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Business, Energy and Industrial Strategy (the Department), including its Office for Product Safety and Standards (the OPSS), on product safety regulation in the UK.1
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Government response AI summary
The Government acknowledges the committee's introductory statement about taking evidence and confirms this document serves as its response to the report.
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HM Treasury
9
Conclusion
Nineteenth Report - Protecting consumer…
Acknowledged
The regulatory regime places responsibility on businesses to ensure the products they make and sell are safe. The OPSS therefore relies on influencing businesses to follow regulations and prevent harm being caused by unsafe products. Despite the OPSS’s work issuing advice and guidance, 24% of businesses are unaware of their …
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The regulatory regime places responsibility on businesses to ensure the products they make and sell are safe. The OPSS therefore relies on influencing businesses to follow regulations and prevent harm being caused by unsafe products. Despite the OPSS’s work issuing advice and guidance, 24% of businesses are unaware of their product safety responsibilities.14 Evidence submitted by Which? indicated that many companies may find it difficult to understand safety regulations.15 The OPSS acknowledged that business awareness needs to improve. It told us it had conducted unpublished research that found the lowest awareness among smaller firms and businesses in low safety risk sectors. The OPSS also emphasised the importance of local regulation in supporting small and home- based business in their local area.16 7 Q 9 8 Qq 58, 33–35 9 Which? submission, page 4 10 London Fire Brigade submission, page 2 11 C&AG’s Report, para 3.8 12 Qq 18, 33 13 C&AG’s Report, paras 3.9–3.10 14 Q 19, C&AG’s Report, para 10 15 Which? submission, page 2 16 Qq 19, 20 10 Protecting consumers from unsafe products
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Government response AI summary
The government agrees, outlining existing consumer safety campaigns, a Business Reference Panel, and plans to enhance understanding of consumers and businesses. It also clarifies the 24% statistic on business awareness.
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HM Treasury
16
Conclusion
Nineteenth Report - Protecting consumer…
Acknowledged
The products consumers buy, and the way they buy them, are changing quickly. For example, internet sales as a proportion of total retail sales in the UK jumped from 27% in 2020 to 36% today—while this jump was likely related to the COVID-19 pandemic the OPSS expects the trend to …
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The products consumers buy, and the way they buy them, are changing quickly. For example, internet sales as a proportion of total retail sales in the UK jumped from 27% in 2020 to 36% today—while this jump was likely related to the COVID-19 pandemic the OPSS expects the trend to continue.29 Online marketplaces, such as Amazon, eBay, and Etsy, are now used by an estimated nine in ten adults who use the internet and are a significant source of potential product safety harm.30
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Government response AI summary
The government agrees with the committee's broader conclusion on regulatory gaps, stating that OPSS has conducted research, initiated a major review of the product safety system, and is developing strategies to address new risks from online marketplaces and emerging technologies.
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HM Treasury
18
Conclusion
Nineteenth Report - Protecting consumer…
Acknowledged
The OPSS estimated that 15% of products bought for the home now include ‘smart’ technology. Products that are connected to the internet create new product safety risks, such as cyber-security risks in the example of a baby monitor which could be subject to hacking. The Department and OPSS recognised such …
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The OPSS estimated that 15% of products bought for the home now include ‘smart’ technology. Products that are connected to the internet create new product safety risks, such as cyber-security risks in the example of a baby monitor which could be subject to hacking. The Department and OPSS recognised such risks, but also noted the opportunities presented by technology to make products safer. In particular, the OPSS described the potential of ‘smart’ technology to identify and alert consumers to product faults, prompt recalls or use updates to increase safety features. The Department and the OPSS recently consulted on a review of the product safety regime. The Department told us that it is considering how to better regulate products with a mix of hardware and software as part of this review.34 Regulatory capacity and skills
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Government response AI summary
The government agrees with the committee's broader conclusion on regulatory gaps, stating that OPSS has conducted research and initiated a major review of the product safety system, and is developing strategies to address new risks from emerging technologies and online marketplaces.
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HM Treasury
19
Conclusion
Nineteenth Report - Protecting consumer…
Acknowledged
The regulatory system for product safety is facing multiple new challenges that it will need the skills and resources to be able to respond to. For example: the OPSS and Trading Standards services will need to give greater consideration to how they regulate safety risks arising from product software and …
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The regulatory system for product safety is facing multiple new challenges that it will need the skills and resources to be able to respond to. For example: the OPSS and Trading Standards services will need to give greater consideration to how they regulate safety risks arising from product software and changing technology; there are new regulatory 29 Q 5 30 C&AG’s Report, para 4.9 31 Qq 44, 19 32 Qq 19–20; C&AG’s Report, para 4.10 33 Q 46 34 Q 22; OPSS, UK Product Safety Review: Call for evidence, March 2021 Protecting consumers from unsafe products 13 functions and an expected increase in goods checking at the border following EU Exit; and the OPSS will be taking on additional responsibilities for the regulation of construction products on behalf of the Ministry of Housing, Communities & Local Government.35
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Government response AI summary
The government agrees with the conclusion that the regulatory system needs to meet new challenges, stating that the OPSS is currently reviewing the product safety framework to ensure it is flexible and fit for the future, particularly regarding new technologies.
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HM Treasury
21
Conclusion
Nineteenth Report - Protecting consumer…
Acknowledged
Local authority Trading Standards services have experienced significant resourcing challenges, including a 39% real-terms reduction in funding in the past 10 years. The OPSS told us that services’ funding varies enormously throughout the UK, as some Trading Standards are very well resourced to tackle product safety risks while others do …
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Local authority Trading Standards services have experienced significant resourcing challenges, including a 39% real-terms reduction in funding in the past 10 years. The OPSS told us that services’ funding varies enormously throughout the UK, as some Trading Standards are very well resourced to tackle product safety risks while others do not have the funding to deal with the most minor product safety issue.38 The OPSS advocated to us the important role played by local Trading Standards services within the regulatory system, particularly with respect to frontline enforcement of product safety regulations. In particular, the OPSS commented on the strengths of Trading Standards services as being part of local communities, which provides useful knowledge and insight of local businesses when investigating different product safety risks and threats in a local area.39 A vision for the future of UK product safety regulation
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Government response AI summary
The government acknowledges the fundamental role of Trading Standards and details existing support including £12 million funding to National Trading Standards and £1.25 million to Trading Standards Scotland, alongside capability building and national coordination efforts, and states OPSS will continue to inform central government discussions …
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HM Treasury
24
Conclusion
Nineteenth Report - Protecting consumer…
Acknowledged
There is also a question over the status and governance of the OPSS, and whether it could be more effective with its own independent duties and powers. It was originally set up as an office within the Department, rather than as a separate arms-length body or independent regulator, as the …
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There is also a question over the status and governance of the OPSS, and whether it could be more effective with its own independent duties and powers. It was originally set up as an office within the Department, rather than as a separate arms-length body or independent regulator, as the best means of getting started quickly given the amount of work it had to undertake immediately. The Department told us that setting the OPSS up as an office within government allowed it to make use of its existing people, structures and processes. The Department recognised that, over time, the OPSS’s governance structure and independence needs to be re-examined. However, it believes that it is currently functioning strongly within its current structures, and noted that Ministers are currently not minded to change its status at present.45 43 OPSS, UK Product Safety Review: Call for evidence, March 2021 44 Q 19 45 Q 1 Protecting consumers from unsafe products 15
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Government response AI summary
The government agrees with the committee's recommendation to re-examine the OPSS's governance and independence, stating that OPSS will detail progress on its future product safety regulation plan within six months and is committed to transparency and accountability.
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HM Treasury