Explanatory note

This Order provides for a temporary exemption from section 57(3) of the Consumer Rights Act 2015 (“the Act”) in respect of liability for delays or cancellations of certain railway passenger services operated under a European rail operator licence, and makes amendments concerned with the enforcement arrangements under the Act.

Section 57(3) of the Act renders non-binding a term of a contract to supply services that would restrict a trader’s liability for breach of certain statutory rights of a consumer arising under Chapter 4 of Part 1 of the Act, if this would prevent the consumer in an appropriate case from recovering the price paid for the service.

The Order also makes various amendments to specified primary legislation.

Article 2 defines certain expressions used in this instrument. A “European rail operator” licence is defined as a licence granted pursuant to UK legislation or action taken by an EEA state for the purpose of implementing Council Directive 95/18/EC of 19th June 1995 on the licensing of railway undertakings (OJ No L 143, 27.6.95, p70, now repealed by Directive 2012/34/EU) or Chapter III of Directive 2012/34/EU of the European Parliament and of the Council of 21^st November 2012 establishing a single European railway area (recast) (OJ No L343, 14.12.2012, p32, as corrected by Corrigendum, OJ No 67, 12.3.2015, p32).

Article 3 provides that section 57(3) does not apply to any liability which a railway undertaking may have to a consumer of a railway passenger service operated by it under a European rail operator licence, where this is due to delay or cancellation.

Article 4 provides that the exemption from section 57(3) provided for by article 3 will apply only in relation to the delay or cancellation of a railway passenger service timetabled to depart before the end of 30th September 2017.

Article 5 gives effect to the Schedule to the Order which specifies amendments to primary legislation.

In the Schedule, paragraph 1 specifies amendments made in consequence of the conferring of Schedule 5 investigatory and enforcement powers (which replace existing powers) on the Department of Enterprise, Trade and Investment in Northern Ireland.

Paragraph 2 specifies amendments to Schedule 5 to the Act. Paragraph 2(2) amends paragraph 10 so as to include two sets of regulations on tobacco to the list of legislation to which the investigatory powers in Schedule 5 apply. Paragraph 2(3) amends paragraph 11 in order to specify legislation as enforcer’s legislation.

The impact of the Act on the costs of business, charities, voluntary bodies and the public sector was assessed before its introduction and is available on the website www.legislation.gov.uk. A validation stage impact assessment of the effect that the exemption from the application of s.57(3) of the Act in this instrument will have on the costs of business, charities, voluntary bodies and the public sector is available from the Department for Transport, Great Minster House, 33 Horseferry Road, London SW1P 4DR and is published alongside the instrument and the Explanatory Memorandum on the website www.legislation.gov.uk.