Source · Select Committees · Public Accounts Committee
Nineteenth Report - Protecting consumers from unsafe products
Public Accounts Committee
HC 180
Published 30 September 2021
Recommendations
2
The OPSS has struggled to reach some businesses and consumers to prevent harm being caused...
Recommendation
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 …
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HM Treasury
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6
The government has not yet set out a clear vision and detailed plan for the...
Recommendation
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 …
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HM Treasury
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Conclusions (22)
3
Conclusion
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 …
4
Conclusion
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 …
5
Conclusion
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 …
1
Conclusion
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
7
Conclusion
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 …
8
Conclusion
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 …
9
Conclusion
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 …
10
Conclusion
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 …
11
Conclusion
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 …
12
Conclusion
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
13
Conclusion
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 …
14
Conclusion
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 …
15
Conclusion
Written evidence from Which? highlighted the increasing importance of international cooperation to support product safety in the UK, particularly in relation to information sharing and enforcement cooperation. Which? suggested that this be achieved through trade negotiations and international organisations such as the OECD and the UN Conference on Trade and …
16
Conclusion
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 …
17
Conclusion
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 …
18
Conclusion
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 …
19
Conclusion
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 …
20
Conclusion
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 …
21
Conclusion
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 …
22
Conclusion
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, …
23
Conclusion
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 …
24
Conclusion
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 …