(1) For the purposes of stamp duty land tax, a land transaction effected by, or for the purposes of, or for purposes connected with, a transfer scheme is exempt from charge.

(2) Relief under this paragraph must be claimed in a land transaction return or an amendment of such a return.

(3) In this paragraph—

“land transaction” has the meaning given by section 43(1) of the Finance Act 2003;

“land transaction return” has the meaning given by section 76(1) of that Act.

Membership of the Service

News and current affairs programmes

Proposals for arrangements

Code of practice

Confirmation decisions: general

Information to be included in a notice under section 362AZ7

Penalty for failure to comply with confirmation decision

Notices

TV licence fee concessions by reference to age

Consultation for directions, approvals and consents

Broadband download speeds: duty to give direction under section 72A

EU consultation for directions, approvals and consents

Obligation to notify OFCOM of voluntary separation

Code by OFCOM about obligations to limit internet access

Additional OFCOM reports on infrastructure etc

OFCOM reports on internet domain names

Power to deal with urgent cases

Appeals from the Tribunal

Removal of members of C4C

Grants to providers

Financial terms of licence renewed under s. 216

Delegation of provision of public teletext service

Abolition of separate licences for certain sound services

Must-offer obligations in relation to satellite services

Categorisation of listed events

Securing reception of must-provide services in certain areas

Action following review under s. 355

Penalty for failure to comply with confirmation decisions

Revocation of designation of radio selection service

Information to be included in a notice under section 362BY

Composition of Competition Commission for price control references

Functions of OFCOM in relation to the BBC

Meaning of electronic communications networks and services

Committees and other procedure of the Consumer Panel

Duty to review certain tariffs that are not universal service tariffs

Penalties for contravention of conditions

Requirement to submit to audit

Contents of initial obligations code

Enforcement of notification under section 96A

Approval of code for premium rate services

Obligations to limit internet access: assessment and preparation

Application of the electronic communications code

OFCOM reports on internet domain names

Comparative overviews of quality and prices

Restrictions on imposing information requirements

Confirmation of direction under section 139B

Recovery of CMA's costs in respect of price control references

Rights of third parties to use information without charge

Directions in relation to C4C's media content duties and commissioning duties

Deficits and surpluses of C4C

Other Functions of C4C

Removal of members of C4C

OFCOM’s power to impose arrangements

OFCOM’s standards code

Financial penalties imposable on licence holders

Changes of control of Channel 3 services

Conditions relating to competition matters

Wireless Telegraphy Act 2006

37

A decision relating to the publication of the United Kingdom Plan for Frequency Authorisation.

38

A decision in exercise of the functions conferred on OFCOM by section 1 as to—

(a) the services, records and advice to be provided, maintained or given by them;

(b) the research to be carried out or the arrangements made for carrying it out; or

39

A decision under section 4 or 7.

40

A decision given effect to—

(a) by regulations under section 8(3), 12, 14, 18, 21, 23, 27, 30, 45 , 53A(7), 53D or 54 or paragraph 1 of Schedule 1 or paragraph 1 of Schedule 2;

(b) by an order under section 29 or 62.

41

A decision relating to the recovery of a sum payable to OFCOM under section 15 , 24 or 53D(6) .

42

A decision given effect to by regulations under section 31 and any decision under any such regulations.

43

A decision relating to the making or revision of a statement under—

(a) section 34, ...

(b) section 44, or

44

A decision to impose a penalty under section 42(1) for a relevant multiplex contravention.

45

A decision for the purposes of section 59.

46

A decision relating to an authority under section 62(5).

Meaning of electronic communications networks and services

EU consultation for section 45 conditions

Provision of information to assist in formulation of policy

Delivery of copies of notifications etc. in respect of section 45 conditions

Directions and approvals for the purposes of a s. 45 condition

Delivery of copies of notifications etc. in respect of directions, approvals and consents

Special rules for transnational markets

Penalties for contravention of code restrictions

Functional separation conditions: consultation and notification

Use of reports

Publication of information required for purpose of preparing reports

Penalties for contravention of information requirements

Publication of information required for purpose of preparing reports

Comparative overviews of quality and prices

C4C's functions in relation to media content

Statement of media content policy

The Gaelic Media Service

Licensing of the public teletext service

Renewal of local licences

Local digital television services

Abolition of separate licences for certain sound services

Categorisation of listed events

Changes of control of Channel 3 services

Action following review under s. 353

Variation of local licence following change of control

Interpretation of Part 3

Functions and general powers of OFCOM

Committees and other procedure of the Consumer Panel

Appeals from the Tribunal

Directions and approvals for the purposes of a s. 45 condition

Domestic consultation for directions, approvals and consents

Amount of penalty under s. 96 or 96A

Suspending apparatus supply for contraventions of conditions

Approval of code for premium rate services

Obligations to limit internet access

Co-operation with other Member States and the European Commission

335A

OFCOM may do any of the things that paragraph 3 of Article 19 of the European Convention on Transfrontier Television requires to be done by an authority designated under paragraph 2 of that Article.

Provision of information by OFCOM

PART 4A — ON-DEMAND PROGRAMME SERVICES

Preliminary

368A

(1) For the purposes of this Act, a service (or a dissociable section of a service) is an “on-demand programme service” if—

(a) its principal purpose is the provision of programmes (as described in section 368ZA);

(b) access to it is on-demand;

(d) it is made available by that person for use by members of the public; ...

(e) that person's head office is in the United Kingdom, and

(f) editorial decisions about the service are taken in the United Kingdom.

(2) Access to a service (or dissociable section of a service) is on-demand if—

(a) the service (or dissociable section of the service) enables the user to view, at a time chosen by the user, programmes selected by the user from among the programmes included in the service (or dissociable section of the service); and

(b) the programmes viewed by the user are received by the user by means of an electronic communications network (whether before or after the user has selected which programmes to view).

(3) For the purposes of subsection (2)(a), the fact that a programme may be viewed only within a period specified by the provider of the service (or dissociable section of the service) does not prevent the time at which it is viewed being one chosen by the user.

(4) A person has editorial responsibility for a service (or dissociable section of a service) if that person has general control—

(a) over what programmes are included in the range of programmes offered to users; and

(b) over the manner in which the programmes are organised in that range;

and the person need not have control of the content of individual programmes or of the broadcasting or distribution of the service (or dissociable section of the service) (and see section 368R(6)).

(5) If an on-demand programme service (“the main service”) offers users access to a relevant ancillary service, the relevant ancillary service is to be treated for the purposes of this Part as a part of the main service.

(6) In subsection (5), “relevant ancillary service” means a service or facility that consists of or gives access to assistance for disabled people in relation to some or all of the programmes included in the main service.

(7) In this section “assistance for disabled people” has the same meaning as in Part 3.

368B

(A1) OFCOM is the appropriate regulatory authority for all purposes of this Part in relation to the BBC (and, in relation to the BBC, OFCOM may not designate any other body to be the appropriate regulatory authority for any of those purposes).

(A2) OFCOM is the appropriate regulatory authority for the purposes of sections 368HC, 368HJ and 368HK (and OFCOM may not designate any other body to be the appropriate regulatory authority for those purposes).

(1) OFCOM may designate any body corporate to be, to the extent provided by the designation, the appropriate regulatory authority for the purposes of any provision of this Part, subject to subsections (A1) , (A2) and (9).

(2) To the extent that no body is designated for a purpose, OFCOM is the appropriate regulatory authority for that purpose.

(3) Where a body is designated for a purpose, OFCOM may act as the appropriate regulatory authority for that purpose concurrently with or in place of that body.

(4) OFCOM may provide a designated body with assistance in connection with any of the functions of the body under this Part.

(5) A designation may in particular—

(a) provide for a body to be the appropriate regulatory authority in relation to on-demand programme services , or non-UK on-demand programme services that are Tier 1 services, of a specified description;

(b) provide that a function of the appropriate regulatory authority is exercisable by the designated body—

(i) to such extent as may be specified;

(ii) either generally or in such circumstances as may be specified; and

(iii) either unconditionally or subject to such conditions as may be specified.

(6) The conditions that may be specified pursuant to subsection (5)(b)(iii) include a condition to the effect that a function may, generally or in specified circumstances, be exercised by the body only with the agreement of OFCOM.

(7) A designation has effect for such period as may be specified and may be revoked by OFCOM at any time.

(8) OFCOM must publish any designation in such manner as they consider appropriate for bringing it to the attention of persons who, in their opinion, are likely to be affected by it.

(9) OFCOM may not designate a body unless, as respects that designation, they are satisfied that the body—

(a) is a fit and proper body to be designated;

(b) has consented to being designated;

(c) has access to financial resources that are adequate to ensure the effective performance of its functions as the appropriate regulatory authority;

(d) is sufficiently independent of providers of on-demand programme services or non-UK on-demand programme services; and

(e) will, in performing any function to which the designation relates, have regard in all cases—

(i) to the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed; and

(ii) to such of the matters mentioned in section 3(4) as appear to the body to be relevant in the circumstances.

(10) Subject to any enactment or rule of law restricting the disclosure or use of information by OFCOM or by a designated body—

(a) a designated body may supply information to another designated body for use by that other body in connection with any of its functions as the appropriate regulatory authority;

(b) a designated body may supply information to OFCOM for use by OFCOM in connection with any of their functions under this Part;

(c) OFCOM may supply information to a designated body for use by that body in connection with any of its functions as the appropriate regulatory authority.

(d) OFCOM may supply information to the video works authority, within the meaning of section 368E, for use by the video works authority in connection with functions of OFCOM as the appropriate regulatory authority;

(e) a designated body may supply information to the video works authority, within the meaning of section 368E, for use by the video works authority in connection with functions of the designated body as the appropriate regulatory authority.

(11) In carrying out their functions as the appropriate regulatory authority, a designated body may carry out, commission or support (financially or otherwise) research.

(12) In this section—

“designation” means a designation under this section and cognate expressions are to be construed accordingly;

“specified” means specified in a designation.

Duties of the appropriate regulatory authority

368C

(1) It is the duty of the appropriate regulatory authority to take such steps as appear to them best calculated to secure that every provider of an on-demand programme service complies with the requirements of sections 368CB and 368D.

(2) The appropriate regulatory authority must encourage providers of on-demand programme services to develop accessibility action plans with a view to continuously and progressively making such services more accessible to people with disabilities.

(2A) The appropriate regulatory authority must provide a single, easily accessible (including by people with disabilities), online point of contact for providing information and receiving complaints regarding accessibility of on-demand programme services to people with disabilities.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The appropriate regulatory authority must encourage providers of on-demand programme services to develop codes of conduct regarding standards concerning the appropriate promotion of food or beverages by sponsorship of, or in advertising which accompanies or is included in, children’s programmes.

(5) The appropriate regulatory authority must draw up, and from time to time review and revise, guidance for providers of on-demand programme services concerning measures that may be appropriate for the purposes of section 368E(4) (ensuring specially restricted material is not available to under-18s).

(6) The appropriate regulatory authority must draw up and, from time to time, review and revise, guidance setting out their intentions concerning the exercise of their functions under this Part in relation to the prohibition imposed by section 368FA (advertising: less healthy food and drink).

(7) The appropriate regulatory authority must consult the Secretary of State before drawing up or revising guidance under subsection (6).

Duties of service providers

368D

(1) The provider of an on-demand programme service must ensure that the service complies with the requirements of sections 368E(1) and (2) and 368F to 368H.

(2) The provider of an on-demand programme service (“P”) must supply the following information to users of the service—

(a) P’s name;

(b) P’s address;

(ca) a statement that P is subject to regulation by the appropriate regulatory authority as a result of section 368A(1)(e) and (f);

(d) the name, address and electronic address of any body which is the appropriate regulatory authority for any purpose in relation to P or the on-demand programme service that P provides.

(3) The provider of an on-demand programme service must—

(zza) provide the appropriate regulatory authority with a copy of any accessibility action plan drawn up by the provider as mentioned in section 368C(2);

(za) pay to the appropriate regulatory authority such fee as that authority may require under section 368NA;

(zb) retain a copy of every programme included in the service for at least 60 days after the day on which the programme ceases to be available for viewing;

(a) comply with any requirement under section 368O (provision of information);

(b) co-operate fully with the appropriate authority for any purpose within section 368O(2) or (6).

(3A) A copy of a programme retained for the purposes of subsection (3)(zb) must be of a standard and in a format which allows the programme to be viewed as it was made available for viewing.

(4) In this section “electronic address” means an electronic address to which users may send electronic communications, and includes any number or address used for the purposes of receiving such communications.

368E

(1) An on-demand programme service must not contain any material likely to incite violence or hatred against a group of persons or a member of a group of persons based on any of the grounds referred to in Article 21 of the Charter of Fundamental Rights of the European Union of 7 December 2000, as adopted at Strasbourg on 12 December 2007.

(2) An on-demand programme service must not contain any prohibited material.

(3) “Prohibited material” means—

(zza) material the inclusion of which in an on-demand programme service would be an offence under section 1 of the Terrorism Act 2006 (encouragement of terrorism),

(za) material the inclusion of which in an on-demand programme service is conduct of a kind that, immediately before IP completion day, would have been required by any of the following to be punishable as a criminal offence—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) Article 5(4) of Directive 2011/93/EU of the European Parliament and of the Council of 13 December 2011 on combating the sexual abuse and sexual exploitation of children and child pornography, or

(iii) Article 1 of Council Framework Decision (2008/913/JHA) of 28 November 2008 on combating certain forms and expressions of racism and xenophobia by means of criminal law,

(a) a video work which the video works authority has determined for the purposes of the 1984 Act not to be suitable for a classification certificate to be issued in respect of it, or

(b) material whose nature is such that it is reasonable to expect that, if the material were contained in a video work submitted to the video works authority for a classification certificate, the video works authority would determine for those purposes that the video work was not suitable for a classification certificate to be issued in respect of it.

(4) A person providing an on-demand programme service must take appropriate measures to ensure that any specially restricted material is made available by the service in a manner which secures that persons under the age of 18 will not normally see or hear it.

(4A) The measures are to be proportionate to the potential of the material to harm the physical, mental or moral development of such persons.

(5) “Specially restricted material” means—

(a) a video work in respect of which the video works authority has issued a R18 classification certificate,

(b) material whose nature is such that it is reasonable to expect that, if the material were contained in a video work submitted to the video works authority for a classification certificate, the video works authority would issue a R18 classification certificate, or

(6) In determining whether any material falls within subsection (3)(b) or (5)(b), regard must be had to any guidelines issued by the video works authority as to its policy in relation to the issue of classification certificates.

(7) In this section—

“the 1984 Act” means the Video Recordings Act 1984;

“classification certificate” has the same meaning as in the 1984 Act (see section 7 of that Act);

“R18 classification certificate” means a classification certificate containing the statement mentioned in section 7(2)(c) of the 1984 Act that no video recording containing the video work is to be supplied other than in a licensed sex shop;

“the video works authority” means the person or persons designated under section 4(1) of the 1984 Act as the authority responsible for making arrangements in respect of video works other than video games;

“video work” has the same meaning as in the 1984 Act (see section 1(2) of that Act).

368F

(1) Advertising of the following products is prohibited in on-demand programme services—

(a) cigarettes or other tobacco products;

(aa) electronic cigarettes or electronic cigarette refill containers;

(b) any prescription-only medicine.

(2) Advertising of alcoholic drinks is only permitted in on-demand programme services if—

(a) it is not aimed specifically at persons under the age of eighteen, nor does it, in particular, depict such persons consuming alcoholic drinks;

(b) it does not link the consumption of alcohol to enhanced physical performance or to driving;

(d) it does not claim that alcohol has therapeutic qualities or that it is a stimulant, a sedative or a means of resolving personal conflicts;

(e) it does not encourage immoderate consumption of alcohol or present abstinence or moderation in a negative light; and

(f) it does not place emphasis on high alcoholic content as being a positive quality of alcoholic drinks.

(3) Advertising included in an on-demand programme service—

(a) must be readily recognisable as such, and

(b) must not use techniques which exploit the possibility of conveying a message subliminally or surreptitiously.

(4) Advertising included in an on-demand programme service must not—

(a) prejudice respect for human dignity;

(b) include or promote discrimination based on sex, racial or ethnic origin, nationality, religion or belief, disability, age or sexual orientation;

(d) encourage behaviour grossly prejudicial to the protection of the environment;

(e) cause physical , mental or moral detriment to persons under the age of eighteen;

(f) directly exhort such persons to purchase or rent goods or services in a manner which exploits their inexperience or credulity;

(g) directly encourage such persons to persuade their parents or others to purchase or rent goods or services;

(h) exploit the trust of such persons in parents, teachers or others; or

(i) unreasonably show such persons in dangerous situations.

368G

(1) An on-demand programme service or a programme included in an on-demand programme service must not be sponsored—

(a) for the purpose of promoting cigarettes or other tobacco products, or

(b) by an undertaking whose principal activity is the manufacture or sale of cigarettes or other tobacco products.

(1A) An on-demand programme service or a programme included in an on-demand programme service must not be sponsored—

(a) for the purpose of promoting electronic cigarettes or electronic cigarette refill containers, or

(b) by an undertaking whose principal activity is the manufacture or sale of electronic cigarettes or electronic cigarette refill containers.

(2) An on-demand programme service or a programme included in an on-demand programme service must not be sponsored for the purpose of promoting a prescription-only medicine.

(3) An on-demand programme service may not include a news programme or current affairs programme that is sponsored.

(4) Subsections (5) to (11) apply to an on-demand programme service that is sponsored or that includes any programme that is sponsored.

(5) The sponsoring of a service or programme must not influence the content of that service or programme in a way that affects the editorial independence of the provider of the service.

(6) Where a service or programme is sponsored for the purpose of promoting goods or services, the sponsored service or programme and sponsorship announcements relating to it must not directly encourage the purchase or rental of the goods or services, whether by making promotional reference to them or otherwise.

(7) Where a service or programme is sponsored for the purpose of promoting an alcoholic drink, the service or programme and sponsorship announcements relating to it must not—

(a) be aimed specifically at persons under the age of eighteen; or

(b) encourage the immoderate consumption of such drinks.

(8) A sponsored service must clearly inform users of the existence of a sponsorship agreement.

(9) The name of the sponsor and the logo or other symbol (if any) of the sponsor must be displayed at the beginning or end of a sponsored programme.

(10) Techniques which exploit the possibility of conveying a message subliminally or surreptitiously must not be used in a sponsorship announcement.

(11) A sponsorship announcement must not—

(a) prejudice respect for human dignity;

(b) include or promote discrimination based on sex, racial or ethnic origin, nationality, religion or belief, disability, age or sexual orientation;

(d) encourage behaviour grossly prejudicial to the protection of the environment;

(e) cause physical , mental or moral detriment to persons under the age of eighteen;

(ea) directly exhort such persons to purchase or rent goods or services in a manner which exploits their inexperience or credulity;

(f) directly encourage such persons to persuade their parents or others to purchase or rent goods or services;

(g) exploit the trust of such persons in parents, teachers or others; or

(h) unreasonably show such persons in dangerous situations.

(12) For the purposes of this Part a programme included in an on-demand programme service is “sponsored” if a person (“the sponsor”) other than—

(a) the provider of that service, or

(b) the producer of that programme,

has met some or all of the costs of the programme for the purpose of promoting the name, trademark, image, activities, services or products of the sponsor or of another person.

(13) But a programme is not sponsored if it falls within this section only by virtue of the inclusion of product placement (see section 368H(1)) or prop placement (see section 368H(2)).

(14) For the purposes of subsection (12) a person meets some or all of the costs of a programme included in a service only if that person makes a payment or provides other resources for the purpose of meeting or saving some or all of the costs of—

(a) producing that programme;

(b) transmitting that programme; or

(15) For the purposes of this Part an on-demand programme service is “sponsored” if a person (“the sponsor”) other than the provider of the service has met some or all of the costs of providing the service for the purpose of promoting the name, trademark, image, activities, services or products of the sponsor or another person.

(16) For the purposes of subsection (15) a person is not to be taken to have met some or all of the costs of providing a service only because a programme included in the service is sponsored by that person.

(17) In this section a “sponsorship announcement” means—

(a) anything included for the purpose of complying with subsection (8) or (9), and

(b) anything included at the same time as or otherwise in conjunction with anything within paragraph (a).

368H

(1) “Product placement”, in relation to a programme included in an on-demand programme service, means the inclusion in the programme of, or of a reference to, a product, service or trade mark, where the inclusion—

(a) is for a commercial purpose,

(b) is in return for the making of any payment, or the giving of other valuable consideration, to any relevant provider or any connected person, and

(2) “Prop placement”, in relation to a programme included in an on-demand programme service, means the inclusion in the programme of, or of a reference to, a product, service or trade mark where—

(a) the provision of the product, service or trade mark has no significant value; and

(b) no relevant provider, or person connected with a relevant provider, has received any payment or other valuable consideration in relation to its inclusion in, or the reference to it in, the programme, disregarding the costs saved by including the product, service or trademark, or a reference to it, in the programme.

(3) Product placement is prohibited in any of the following included in on-demand programme services—

(a) children’s programmes;

(b) news and current affairs programmes;

(d) religious programmes.

(4) Product placement is prohibited in on-demand programme services if—

(a) it is of cigarettes or other tobacco products,

(b) it is by or on behalf of an undertaking whose principal activity is the manufacture or sale of cigarettes or other tobacco products, ...

(ba) it is of electronic cigarettes or electronic cigarette refill containers, ...

(bb) it is by or on behalf of an undertaking whose principal activity is the manufacture or sale of electronic cigarettes or electronic cigarette refill containers, or

(5) Product placement of alcoholic drinks must not —

(a) be aimed specifically at persons under the age of eighteen;

(b) encourage immoderate consumption of such drinks.

(6) Product placement is otherwise permitted in programmes included in on-demand programme services provided that—

(a) conditions B to F are met, and

(b) if subsection (14) applies, condition G is also met.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Condition B is that the product placement has not influenced the content of the programme in a way that affects the editorial independence of the provider of the service.

(9) Condition C is that the product placement does not directly encourage the purchase or rental of goods or services, whether by making promotional reference to those goods or services or otherwise.

(10) Condition D is that the programme does not give undue prominence to the products, services or trade marks concerned.

(11) Condition E is that the product placement does not use techniques which exploit the possibility of conveying a message subliminally or surreptitiously.

(12) Condition F is that the way in which the product, service or trade mark, or the reference to it, is included in the programme by way of product placement does not—

(a) prejudice respect for human dignity;

(b) promote discrimination based on sex, racial or ethnic origin, nationality, religion or belief, disability, age or sexual orientation;

(d) encourage behaviour grossly prejudicial to the protection of the environment;

(e) cause physical , mental or moral detriment to persons under the age of eighteen;

(ea) directly exhort such persons to purchase or rent goods or services in a manner which exploits their inexperience or credulity;

(f) directly encourage such persons to persuade their parents or others to purchase or rent goods or services;

(g) exploit the trust of such persons in parents, teachers or others; or

(h) unreasonably show such persons in dangerous situations.

(13) Condition G is that the on-demand programme service in question signals appropriately the fact that product placement is contained in a programme, no less frequently than—

(a) at the start and end of such a programme, and

(b) in the case of an on-demand programme service which includes advertising breaks within it, at the recommencement of the programme after each such advertising break.

(14) This subsection applies where the programme featuring the product placement has been produced or commissioned by the provider of the service or any connected person.

(15) Subject to subsections (15A), (15B) and (15C), this section applies only in relation to programmes the production of which begins after 19th December 2009.

(15A) Subsection (4)(ba) applies only in relation to programmes the production of which begins after 19th May 2016.

(15B) Subsection (4)(bb) applies only in relation to programmes the production of which begins after 31 October 2020.

(15C) This section applies in relation to a programme the production of which began before 1 November 2020 as if—

(a) subsection (3)(b) to (d) were omitted, and

(b) subsection (6)(a) included a reference to a condition that the programme in which the product, service or trademark, or the reference to it, is included is—

(i) a film made for cinema,

(ii) a film or series made for a television programme service or for an on-demand programme service,

(iii) a sports programme, or

(iv) a light entertainment programme.

(16) In this section—

“connected” has the same meaning as it has in the Broadcasting Act 1990 by virtue of section 202 of that Act;

“film made for cinema” means a film made with a view to its being shown to the general public first in a cinema;

“producer”, in relation to a programme, means the person by whom the arrangements necessary for the making of the programme are undertaken;

“programme” does not include an advertisement;

“relevant provider”, in relation to a programme, means—the provider of the on-demand programme service in which the programme is included; andthe producer of the programme;

“residual value” means any monetary or other economic value in the hands of the relevant provider other than the cost saving of including the product, service or trademark, or a reference to it, in a programme;

“significant value” means a residual value that is more than trivial; and

“trade mark”, in relation to a business, includes any image (such as a logo) or sound commonly associated with that business or its products or services.

368I

(1) Where the appropriate regulatory authority determine that a provider of an on-demand programme service is contravening or has contravened section 368CB or section 368D , or that a provider of a non-UK on-demand programme service that is a Tier 1 service is contravening or has contravened section 368D, they may do one or both of the following—

(a) give the provider an enforcement notification under this section;

(b) impose a financial penalty on the provider in accordance with section 368J.

(1A) Where OFCOM (as the appropriate regulatory authority) determine that a provider of a Tier 1 service is contravening or has contravened section 368HC, 368HJ(1), 368HK(2) or 368HP, they may do one or both of the following—

(a) give the provider an enforcement notice under this section;

(b) impose a financial penalty on the provider in accordance with section 368J.

(2) The appropriate regulatory authority must not make a determination as mentioned in subsection (1) or (1A) unless there are reasonable grounds for believing that a contravention of section 368CB or section 368D or (as the case may be) section 368HC, 368HJ (1), 368HK (2) or 368HP is occurring or has occurred and they have allowed the provider an opportunity to make representations about that apparent contravention.

(3) An enforcement notification under this section is a notification which specifies the determination made as mentioned in subsection (1) or (1A) and imposes requirements on the provider to take such steps for complying with section 368CB or section 368D or (as the case may be) section 368HC, 368HJ (1), 368HK (2) or 368HP and for remedying the consequences of the contravention ... as may be specified in the notification.

(4) The requirements specified in an enforcement notification may in particular include requirements to do one or more of the following—

(a) cease providing or restrict access to–

(i) a specified programme, or

(ii) programmes of a specified description;

(b) cease showing or restrict access to–

(i) a specified advertisement, or

(ii) advertisements of a specified description;

(c) provide additional information to users of the service prior to the selection of a specified programme by the user for viewing;

(d) show an advertisement only with specified modifications;

(e) publish a correction in the form and place and at the time specified; or

(f) publish a statement of the findings of the appropriate regulatory authority in the form and place and at the time specified.

(5) An enforcement notification must—

(a) include reasons for the appropriate regulatory authority’s decision to give the enforcement notification, and

(b) fix a reasonable period for the taking of the steps required by the notification.

(6) Where a provider is required by an enforcement notification to publish a correction or a statement of findings, the provider may publish with the correction or statement of findings a statement that it is published in pursuance of the enforcement notification.

(7) It is the duty of a provider to whom an enforcement notification has been given to comply with it.

(8) That duty is enforceable in civil proceedings by the appropriate regulatory authority—

(a) for an injunction;

(b) for specific performance of a statutory duty under section 45 of the Court of Session Act 1988; or

(8A) Subsection (8) applies whether or not the provider is in the United Kingdom.

(9) If a provider to whom an enforcement notification has been given does not comply with it within the period fixed by the appropriate regulatory authority in that enforcement notification the appropriate regulatory authority may impose a financial penalty on that provider in accordance with section 368J.

(10) A financial penalty may not be imposed on a provider of an on-demand programme service , or a non-UK on-demand programme service that is a Tier 1 service, under subsection (1) , (1A) or (9) in respect of an act or omission if the provider has been convicted of a criminal offence in respect of that act or omission.

Financial penalties

368J

(1) The amount of a penalty imposed on a provider under section 368BB ... , 368I or 368IA is to be such amount not exceeding 5 per cent. of the provider’s applicable qualifying revenue or £250,000 whichever is the greater amount, as the appropriate regulatory authority determine to be—

(a) appropriate; and

(b) proportionate to the contravention or failure in respect of which it is imposed.

(1A) Where the provider in question is the BBC, the amount of the penalty is to be such amount not exceeding the amount for the time being specified in an order under section 198(6) or, if no such order is in force, £250,000, as OFCOM determine to be—

(a) appropriate; and

(b) proportionate to the contravention or failure in respect of which it is imposed.

(2) In determining the amount of a penalty under subsection (1) or (1A) the appropriate regulatory authority must have regard to any statement published by OFCOM under section 392 (guidelines to be followed in determining amount of penalties).

(3) The “applicable qualifying revenue”, in relation to a provider, means—

(a) the qualifying revenue for the provider’s last complete accounting period falling within the period during which the provider has been providing the service to which the contravention or failure relates; or

(b) in relation to a person whose first complete accounting period falling within that period has not ended when the penalty is imposed, the amount that the appropriate regulatory authority estimate to be the qualifying revenue for that period.

(4) For the purposes of subsection (3) the “qualifying revenue” for an accounting period consists of the aggregate of all the amounts received or to be received by the provider of the service to which the contravention or failure relates or by any connected person in the accounting period —

(a) for the inclusion in that service of advertisements, product placement and sponsorship; and

(b) in respect of charges made in that period for the provision of programmes included in that service.

(5) For the purposes of subsection (4), “connected” has the same meaning as it has in the Broadcasting Act 1990 by virtue of section 202 of that Act.

(6) A financial penalty imposed under this section—

(a) must be paid into the appropriate Consolidated Fund; and

(b) if not paid within the period fixed by the appropriate regulatory authority, is to be recoverable by the appropriate regulatory authority as a debt due to them from the person obliged to pay it.

(7) For the purposes of subsections (3) and (6)—

(a) the amount of a person’s qualifying revenue for an accounting period, or

(b) the amount of any payment to be made into the appropriate Consolidated Fund by any person in respect of any such revenue,

is, in the event of a disagreement between the appropriate regulatory authority and that person, the amount determined by the appropriate regulatory authority.

(8) The references in this section to the payment of an amount into the appropriate Consolidated Fund—

(a) in the case of an amount received in respect of matters appearing to OFCOM to have no connection with Northern Ireland, is a reference to the payment of the amount into the Consolidated Fund of the United Kingdom;

(b) in the case of an amount received in respect of matters appearing to OFCOM to have a connection with Northern Ireland but no connection with the rest of the United Kingdom, is a reference to the payment of the amount into the Consolidated Fund of Northern Ireland; and

(c) in any other case, is a reference to the payment of the amount, in such proportions as OFCOM consider appropriate, into each of those Funds.

Suspension or restriction of service

368K

(1) The appropriate regulatory authority must serve a notice under subsection (2) on a provider of an on-demand programme service or a non-UK on-demand programme service that is a Tier 1 service if they are satisfied—

(a) that the provider is in contravention of section 368BA , 368CB or 368D ... , or has failed to take a measure which the authority consider to be appropriate in relation to that service for the purpose mentioned in section 368E(4), or has failed to implement such a measure effectively;

(b) that the imposition of one or more financial penalties or enforcement notifications under section 368BB..., 368I or 368IA has not resulted in the remedying of the contravention or failure in question; and

(c) that the giving of a direction under this section would be appropriate and proportionate to the seriousness of the contravention or failure.

(1A) OFCOM (as the appropriate regulatory authority) must serve a notice under subsection (2) on a provider of a Tier 1 service if they are satisfied—

(a) that the provider is in contravention of section 368HC, 368HJ (1), 368HK (2) or 368HP,

(b) that the imposition of one or more financial penalties or enforcement notifications under section 368I has not resulted in the remedying of the contravention, and

(c) that the giving of a direction under this section would be appropriate and proportionate to the seriousness of the contravention.

(2) A notice under this subsection must—

(a) state that the appropriate regulatory authority are satisfied as mentioned in subsection (1) or (1A);

(b) state the reasons why they are satisfied as mentioned in subsection (1) or (1A);

(c) state that the appropriate regulatory authority will give a direction under this section unless the provider takes, within a period specified in the notice, such steps to remedy the contravention or failure within subsection (1)(a) or (1A)(a) as are so specified;

(d) specify any conditions that the appropriate regulatory authority propose to impose in the direction under section 368M(5)(b); and

(e) inform the provider that the provider has the right to make representations to the appropriate regulatory authority about the matters appearing to the authority to provide grounds for giving the proposed direction within the period specified for the purposes of paragraph (c).

(3) If, after considering any representations made to them by the provider within that period, the appropriate regulatory authority are satisfied that the provider has failed to take the steps specified in the notice for remedying the contravention or failure and that it is necessary in the public interest to give a direction under this section, the appropriate regulatory authority must give such of the following as appears to them appropriate and proportionate as mentioned in subsection (1)(c) or (1A)(c)—

(a) a direction that the entitlement of the provider to provide an on-demand programme service or a non-UK on-demand programme service that is a Tier 1 service is suspended (either generally or in relation to a particular service);

(b) a direction that that entitlement is restricted in the respects set out in the direction.

368L

(1) The appropriate regulatory authority must serve a notice under subsection (2) on a provider of an on-demand programme service or a non-UK on-demand programme service that is a Tier 1 service if they are satisfied—

(a) that—

(i) the service has failed to comply with any requirement of section 368E(1) or (2) or sections 368F to 368H and that accordingly the provider has contravened section 368D(1), or

(ii) the provider has failed to take a measure which the authority consider to be appropriate in relation to that service for the purpose mentioned in section 368E(4), or has failed to implement such a measure effectively;

(b) that the failure is due to , or has resulted in, the inclusion in the service of material likely to encourage or to incite the commission of crime, or to lead to disorder; and

(2) A notice under this subsection must—

(a) state that the appropriate regulatory authority are satisfied as mentioned in subsection (1);

(b) give details about the matters which, in their opinion, constitute the contravention or failure in question;

(d) state that the appropriate regulatory authority may give a direction under this section after the end of the period of twenty-one days beginning with the day on which the notice is served on the provider; and

(e) inform the provider of the provider’s right to make representations to the appropriate regulatory authority within that period about the matters appearing to the appropriate regulatory authority to provide grounds for giving a direction under this section.

(3) A notice under subsection (2) has the effect specified under subsection (2)(c), which may be either—

(a) that the entitlement of the provider to provide an on-demand programme service or a non-UK on-demand programme service that is a Tier 1 service is suspended (either generally or in relation to a particular service), or

(b) that that entitlement is restricted in the respects set out in the notice.

(4) The suspension or restriction has effect as from the time when the notice is served on the provider until either—

(a) a direction given under this section takes effect; or

(b) the appropriate regulatory authority decide not to give such a direction.

(5) If, after considering any representations made to them by the provider within the period mentioned in subsection (2)(d), the appropriate regulatory authority are satisfied that it is necessary in the public interest to give a direction under this section, they must give such of the following as appears to them justified as mentioned in subsection (1)(c)—

(a) a direction that the entitlement of the provider to provide an on-demand programme service or a non-UK on-demand programme service that is a Tier 1 service is suspended (either generally or in relation to a particular service);

(b) a direction that that entitlement is restricted in the respects set out in the direction.

368M

(1) This section applies to a direction given to a provider under section 368K or 368L.

(2) A direction must specify the service to which it relates or specify that it relates to any on-demand programme service , or to any non-UK on-demand programme service that is a Tier 1 service, provided or to be provided by the provider.

(2A) A direction has effect in relation to a non-UK on-demand programme service that is a Tier 1 service only so far as the service is made available for use by members of the public in the United Kingdom.

(3) A direction, except so far as it otherwise provides, takes effect for an indefinite period beginning with the time at which it is notified to the provider.

(4) A direction under section 368L must specify a time for it to take effect, and that time must not fall before the end of twenty-eight days beginning with the day on which the direction is notified to the provider.

(5) A direction—

(a) may provide for the effect of a suspension or restriction to be postponed by specifying that it takes effect only at a time determined by or in accordance with the terms of the direction; and

(b) in connection with the suspension or restriction contained in the direction or with the postponement of its effect, may impose such conditions on the provider as appear to the appropriate regulatory authority to be appropriate for the purpose of protecting that provider’s customers.

(6) If the appropriate regulatory authority consider it appropriate to do so (whether or not in consequence of representations or proposals made to them), they may revoke a direction or modify its conditions—

(a) with effect from such time as they may direct;

(b) subject to compliance with such requirements as they may specify; and

368N

(1) A person (“P”) is guilty of an offence if P provides an on-demand programme service or a non-UK on-demand programme service that is a Tier 1 service—

(a) while P’s entitlement to do so is suspended by a direction under section 368K or 368L, or

(b) in contravention of a restriction contained in such a direction.

(2) A person guilty of an offence under this section is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

Information

368O

(1) The appropriate regulatory authority may by notice require a person within subsection (5) to provide them with any information that they require for the purpose of carrying out their functions under this Part.

(2) OFCOM may by notice require a person within subsection (5) to provide them with any information that they require for the purpose of carrying out their functions under Part 5 of the 1996 Act, so far as relating to Tier 1 services.

(3) The power conferred by subsection (1) or (2) includes power to require a person within subsection (5) to obtain or generate information.

(4) The power conferred by subsection (1) or (2) must be exercised in a way that is proportionate to the use to which the information is to be put by OFCOM.

(5) The persons within this subsection are—

(a) a provider of an on-demand programme service or a non-UK on-demand programme service;

(b) a person who was a provider of an on-demand programme service or a non-UK on-demand programme service at a time to which the required information relates;

(c) a person who is not within paragraph (a) or (b) but who appears to the appropriate regulatory authority to have, or to be able to obtain or generate, information required by them as mentioned in subsection (1).

(6) The information that the appropriate regulatory authority may require under subsection (1) includes, in particular, information that they require for any one or more of the following purposes—

(a) the purpose of determining whether a person is a provider of an on-demand programme service or a non-UK on-demand programme service;

(b) the purpose of determining whether a person is a provider of a Tier 1 service;

(c) the purpose of determining whether there has been any change of circumstances that may affect a determination mentioned in paragraph (a) or (b);

(d) the purpose of assessing compliance with any duty imposed on a provider of an on-demand programme service by or by virtue of Chapter 2;

(e) the purpose of assessing compliance with any duty imposed on a provider of a Tier 1 service by or by virtue of Chapter 3;

(f) the purpose of an investigation being carried out by the authority to determine whether a contravention of section 368BA, 368CB or 368D has occurred or is occurring;

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