Legalize / United Kingdom / Public General Act

Digital Markets, Competition and Consumers Act 2024

Type Public General Act

Publication 2024-05-24

Last updated 2026-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(4) The amount of the penalty must be a fixed amount not exceeding £30,000 or, if higher, 1% of the total value of the turnover (if any) of the respondent.

(5) A final false information enforcement notice must—

(a) set out the grounds on which it is given;

(b) state any further factors (in addition to those provided under paragraph (a)) which the CMA considers justify the giving of the notice;

(6) The CMA may publish a final false information enforcement notice in such manner, and to such extent, as the CMA considers appropriate.

Miscellaneous and appeals

Statement of policy in relation to monetary penalties

199

(1) The CMA must prepare and publish a statement of policy in relation to the exercise of powers to impose a monetary penalty under this Chapter.

(2) The statement must include a statement about the considerations relevant to the determination of—

(a) whether to impose a penalty under this Chapter, and

(b) the nature and amount of any such penalty.

(3) The CMA may revise its statement of policy and, where it does so, must publish the revised statement.

(4) In preparing or revising its statement of policy the CMA must consult—

(a) the Secretary of State, and

(b) such other persons as the CMA considers appropriate.

(5) A statement of policy, or revised statement, may not be published under this section without the approval of the Secretary of State.

(6) Subsection (7) applies where the CMA proposes to impose under this Chapter a monetary penalty on a person.

(7) The CMA must have regard to the statement of policy most recently published under this section at the time of the act or omission giving rise to the penalty in deciding—

(a) whether to impose the penalty, and

(b) if so, the nature and amount of the penalty.

Interconnected bodies corporate

200

(1) This section applies where—

(a) the CMA gives to a body corporate (“the respondent”) a final notice, and

(b) the interconnection condition applies in relation to the respondent.

(2) The interconnection condition applies in relation to the respondent if—

(a) at the time the final notice is given, the respondent is a member of a group of interconnected bodies corporate,

(b) at any time when requirements imposed by the final notice remain in force, the respondent becomes a member of a group of interconnected bodies corporate, or

(c) at any time when requirements imposed by the final notice remain in force, a group of interconnected bodies corporate of which the respondent is a member is increased by the addition of one or more further members.

(3) The notice may include provision for the requirements (or any particular requirements) imposed by the final notice on the respondent also to be binding upon all other members of the group (in addition to the respondent), as if each of them were the respondent.

(4) Provision may be included in a notice under subsection (3) only if the CMA considers it just, reasonable and proportionate to include that provision.

(5) A group of interconnected bodies corporate is a group consisting of two or more bodies corporate all of whom are interconnected with each other.

(6) Any two bodies corporate are interconnected—

(a) if one of them is a subsidiary of the other, or

(b) if both of them are subsidiaries of the same body corporate.

(7) Where a final notice includes provision under subsection (3), the notice must also be given to any other member of the respondent’s group in relation to which the requirements imposed by the notice are to be binding.

(8) In this section “final notice” means—

(a) a final infringement notice,

(b) an online interface notice, or

Record-keeping and reporting requirements

201

(1) The CMA must keep a record of—

(a) undertakings it has accepted and enforcement directions it has given, and

(b) reviews it has carried out in relation to the effectiveness of such undertakings and directions.

(2) If requested to do so by the Secretary of State, the CMA must prepare a report on—

(a) the effectiveness of undertakings and enforcement directions, and

(b) the number and outcome of appeals brought under section 202.

(3) The CMA must—

(a) provide to the Secretary of State a report prepared under this section, and

(b) publish the report in such manner as the CMA considers appropriate.

(4) In this section—

(a) “undertakings” means undertakings given under section 185;

(b) “enforcement directions” includes directions given in a notice under section 192 (5)(b).

Appeals

202

(1) A person to whom a relevant notice is given may appeal to the appropriate appeal court against—

(a) a decision to impose a monetary penalty by virtue of the notice,

(b) the nature or amount of any such penalty, or

(2) The grounds for an appeal under subsection (1)(a) or (b) are that—

(a) the decision to impose a monetary penalty was based on an error of fact,

(b) the decision was wrong in law,

(d) the decision was unreasonable or wrong for any other reason.

(3) The grounds for an appeal under subsection (1)(c) are that—

(a) the decision to give the directions was based on an error of fact,

(b) the decision was wrong in law,

(d) the decision was unreasonable or wrong for any other reason.

(4) On an appeal under this section the appropriate appeal court may quash, confirm or vary the relevant notice.

(5) Except in the case of an appeal relating to a final false information enforcement notice, in addition to the powers conferred by subsection (4) the appropriate appeal court may also remit any matter that is the subject of the appeal to the CMA.

(6) An appeal under this section must be brought before the end of the applicable period beginning with the day on which the relevant notice was given to the person seeking to bring the appeal.

(7) The appropriate appeal court may extend the applicable period for bringing an appeal.

(8) Where an appeal is brought in respect of—

(a) a requirement to pay a monetary penalty, or

(b) a requirement to pay compensation under directions imposing enhanced consumer measures,

the penalty or compensation is not required to be paid until after the appeal is determined, withdrawn or otherwise dealt with.

(9) In this section—

“applicable period” means— in relation to a final false information enforcement notice, the period of 28 days; in relation to any other relevant notice, the period of 60 days;

“appropriate appeal court” means— in relation to England and Wales or Northern Ireland, the High Court; in relation to Scotland, the Outer House of the Court of Session;

“relevant notice” means— a final infringement notice, an online interface notice, a final breach of undertakings enforcement notice, a final breach of directions enforcement notice, or a final false information enforcement notice.

Chapter 5 — Monetary penalties: general provisions

Information to accompany orders or notices imposing monetary penalties

203

(1) An order or notice under Chapter 3 or 4 under which a person (“the respondent”) is required to pay a monetary penalty must state the following information (referred to in those Chapters as the “monetary penalty information”)—

(a) the amount of the penalty (including whether it is a fixed amount, an amount calculated by reference to a daily rate or both a fixed amount and an amount calculated by reference to a daily rate);

(b) the grounds on which the penalty is imposed together with any other factors that the court (in the case of an order) or the CMA (in the case of a notice) considers justify the giving of the penalty or its amount;

(c) in the case of an amount calculated by reference to a daily rate, the day on which the amount first starts to accumulate and the day or days on which it might cease to accumulate;

(d) how the penalty is to be paid;

(e) the date or dates, no earlier than the end of the applicable period beginning with the date on which the order was served on or the notice was given to the respondent, by which the penalty or (as the case may be) different portions of it are required to be paid;

(f) that the penalty or (as the case may be) different portions of it may be paid earlier than the date or dates by which it or they are required to be paid;

(g) that the respondent has the right to apply under subsection (3) (in the case of an order) or subsection (4) (in the case of a notice);

(h) the rights available to the respondent to appeal in respect of the imposition of the penalty;

(i) the main details of the rights mentioned in paragraphs (g) and (h).

(2) In subsection (1)(e) “the applicable period” means—

(a) in the case of an order or a final false information enforcement notice, the period of 28 days;

(b) in any other case, the period of 60 days.

(3) The respondent may, within 14 days of the date on which an order imposing a monetary penalty is served on the respondent, apply to the court for the court to specify a different date or dates by which the penalty, or different portions of it, are to be paid.

(4) The respondent may, within 14 days of the date on which a notice imposing a monetary penalty is given to the respondent, apply to the CMA to specify a different date or dates by which the penalty, or different portions of it, are required to be paid.

(5) References in subsections (1) and (2) to an order include references to a notice accompanying such an order given under section 158 (4).

(6) In the application of this section to Scotland, the references in subsections (1)(e) and (3) to an order being served include service of an extract order in execution of or diligence on the order.

Determination of turnover

204

(1) In this Part references to “turnover” of a person include—

(a) turnover both in and outside the United Kingdom;

(b) where the person controls another person, the turnover of that other person;

(2) The Secretary of State may by regulations—

(a) make provision for determining when a person is to be treated as controlled by another person for the purposes of subsection (1)(b) and (c);

(b) make provision for determining the turnover of a person for the purposes of this Part.

(3) Regulations under this section may, in particular, make provision as to—

(a) the amounts which are, or which are not, to be treated as comprising a person’s turnover or daily turnover;

(b) the date or dates by reference to which a person’s turnover or daily turnover is to be determined.

(4) Regulations under this section may include provision enabling the court or the CMA to determine matters of a description specified in the regulations (including any of the matters mentioned in paragraphs (a) and (b) of subsection (3)).

(5) Regulations under this section are subject to the negative procedure.

Power to amend amounts

205

(1) The Secretary of State may by regulations amend any of the following provisions for the purpose of substituting a different monetary amount for an amount of fixed or daily penalty for the time being specified—

(a) section 158 (5);

(b) section 168 (3)(a) and (b);

(d) section 190 (3)(a) and (b);

(e) section 193 (3)(a) and (b);

(f) section 198 (4).

(2) Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.

(3) Regulations under this section are subject to the affirmative procedure.

Recovery of monetary penalties

206

(1) This section applies where a monetary penalty imposed under Chapter 4, or any part of such a penalty, has not been paid by the date on which it is required to be paid and—

(a) an appeal to a court against the imposition of the penalty has not been brought before the end of the period within which it is required to be brought, or

(b) any such appeal that was brought has been determined, withdrawn or otherwise disposed of.

(2) The CMA may recover from the person on whom the penalty was imposed any of the penalty and any interest which has not been paid.

(3) Any such penalty and interest may be recovered summarily (or, in Scotland, recovered) as a civil debt by the CMA.

(4) Subsection (5) applies where—

(a) a penalty is payable by a person by virtue of a final infringement notice,

(b) the notice also includes directions imposing a requirement on the person to take enhanced consumer measures, and

(c) the enhanced consumer measures that the person is required to take are or include redress measures (see section 221 (2)).

(5) In deciding whether to recover the penalty from the person under subsection (2), the CMA must have regard to—

(a) whether any compensation required to be paid to consumers under the redress measures has been, or is likely to be, paid, and

(b) where any such payments have not yet been paid (in full or in part), the effect that recovery of the penalty from the person may have on the person’s ability to make those compensatory payments.

Monetary penalties: further provision

207

(1) If the whole or any portion of a monetary penalty imposed is not paid by the date by which it is required to be paid, the unpaid balance from time to time carries interest at the statutory rate.

(2) Where an application has been made under section 203 (3) or (4), the penalty is not required to be paid until the application has been determined, withdrawn or otherwise disposed of.

(3) Where an application has been made to appeal to a court in respect of a monetary penalty, the penalty is not required to be paid until the application has been determined, withdrawn or otherwise disposed of.

(4) If a portion of a monetary penalty imposed by an order of the court has not been paid by the date required for it, the court may, where it considers it appropriate to do so, by order require so much of the penalty as has not already been paid (and is capable of being paid immediately) to be paid immediately.

(5) If a portion of a monetary penalty imposed by virtue of a notice given by the CMA has not been paid by the date required for it, the CMA may, where it considers it appropriate to do so, by notice require so much of the penalty as has not already been paid (and is capable of being paid immediately) to be paid immediately.

(6) Where on an appeal under section 202 the court substitutes a penalty of a different nature or of a lesser amount, the court may require the payment of interest at the statutory rate on the substituted penalty from whatever date it considers appropriate (which may include a date before the determination of the appeal).

(7) In the case of a monetary penalty imposed on a firm that is not a body corporate, the penalty is to be paid out of the assets or funds of the firm.

(8) Sums received from a person towards payment of a monetary penalty must be paid—

(a) in the case of a penalty imposed by an order of the Court of Session or the Sheriff, into the Scottish Consolidated Fund;

(b) in the case of a penalty imposed by an order of a court in Northern Ireland, into the Consolidated Fund of Northern Ireland;

(9) In this section—

“monetary penalty” means a monetary penalty imposed under Chapter 3 or 4;

“the statutory rate” means the rate for the time being specified in section 17 of the Judgments Act 1838.

Chapter 6 — Investigatory powers

Investigatory powers of enforcers

208

(1) Schedule 17 contains amendments to Schedule 5 to CRA 2015 (investigatory powers), including amendments about—

(a) the giving of monetary penalties in connection with a failure to comply with an information notice;

(b) the giving of information notices to persons outside the United Kingdom;

(d) entry to premises where documents are accessible from the premises.

(2) In subsection (1) “information notice” means a notice given under paragraph 14 of Schedule 5 to CRA 2015.

Chapter 7 — Miscellaneous

Powers to amend Schedule 15 and Schedule 16

209

(1) The Secretary of State may by regulations amend—

(a) the first column of the Table in Part 1 of Schedule 15 so as to add, remove or vary an entry for an enactment;

(b) the second column of that Table so as to add, remove or vary an entry providing for the authorised enforcers in respect of an enactment;

(d) the second column of the Table in Part 2 of Schedule 15 so as to add, remove or vary an entry providing for the authorised enforcers in respect of an obligation or rule of law;

(e) Schedule 16 so as to add, remove or vary an entry for an enactment.

(2) The power under subsection (1)(a) or (e) is exercisable so as to add or vary an entry in respect of an enactment only if, and to the extent that, one or more of the following is provided for under or by virtue of the enactment so added or varied—

(a) a duty, prohibition or restriction enforceable by criminal proceedings;

(b) a duty owed to a person that is enforceable by civil proceedings;

(d) an agreement or security relating to a supply of goods, services or digital content to be void or unenforceable to any extent;

(e) a right or remedy exercisable by a person supplying goods, services or digital content to be restricted or excluded;

(f) the avoidance (to any extent) of liability relating to the supply of goods, services or digital content to be restricted or prevented.

(3) It is immaterial for the purposes of subsection (2) whether or not—

(a) a duty, prohibition or restriction exists in relation to consumers as such;

(b) a remedy or sanction is provided for the benefit of consumers as such;

(d) a person has been convicted of an offence in relation to the act or omission concerned.

(4) Regulations under this section are subject to the affirmative procedure.

Rules

210

(1) The CMA may make rules about procedural and other matters in connection with the carrying out of its direct enforcement functions.

(2) Rules may provide for any of the CMA’s direct enforcement functions to be carried out on its behalf—

(a) by one or more members of the CMA Board (see Part 2 of Schedule 4 to the Enterprise and Regulatory Reform Act 2013);

(b) by one or more members of the CMA Panel (see Part 3 of Schedule 4 to that Act);

(d) jointly by one or more of the persons mentioned in paragraphs (a) to (c).

(3) Rules may (among other things) include provision as to the following matters so far as relating to the carrying out of direct enforcement functions—

(a) the form and manner in which a notice given by the CMA under a direct enforcement function is to be given (subject to section 332);

(b) the person (or persons) to whom the notice is to be given;

(d) arrangements to ensure the protection of confidential information;

(e) the disclosure of information to persons under investigation;

(f) the form and manner in which representations may or must be made to the CMA;

(g) the procedure to be followed in relation to the holding of oral hearings as part of an investigation;

(h) the procedure to be followed in cases where a person under investigation accepts that there has been a relevant infringement of a kind to which the investigation relates;

(i) arrangements for the making of, and dealing with, complaints.

(4) In this section and section 211 “rules” means rules made under this section.

Procedural requirements for making of rules

211

(1) In preparing rules the CMA must consult such persons as the CMA considers appropriate.

(2) The CMA may not bring a rule into operation until the rule has been approved by regulations made by the Secretary of State.

(3) The Secretary of State may approve a rule—

(a) in the form in which it is submitted, or

(b) subject to whatever modifications the Secretary of State considers appropriate.

(4) Where the Secretary of State proposes to approve a rule subject to modifications, the Secretary of State must—

(a) inform the CMA of the proposed modifications, and

(b) take into account any comments made by the CMA about the proposed modifications.

(5) The Secretary of State may by regulations—

(a) vary or revoke rules, or

(b) direct the CMA to vary or revoke rules in accordance with the direction.

(6) Subsections (2) to (4) apply to any variation of rules made by the CMA, except where acting under a direction given under subsection (5)(b).

(7) Regulations under this section are subject to the negative procedure.

Guidance

212

(1) The CMA must prepare and publish guidance about its general approach to the carrying out of its direct enforcement functions.

(2) Guidance under subsection (1) must provide information about the factors that the CMA will take into account in determining—

(a) whether it will exercise a power under Chapter 4 to accept, vary or release an undertaking;

(b) in cases where the exercise of any such power is exercisable only if the CMA considers a person has acted (or failed to act) without a reasonable excuse, whether a reasonable excuse exists;

(c) in a case where a monetary penalty has not been paid (or paid in full), whether to start proceedings for recovery of the penalty.

(3) Guidance under subsection (1) may include information about any other matters in connection with the carrying out of direct enforcement functions, including the factors that the CMA will take into account in determining whether to give a notice to a person in the carrying out of those functions.

(4) The CMA—

(a) must keep the guidance under review, and

(b) may from time to time revise or replace the guidance.

(5) Before issuing the first guidance under this section the CMA must consult—

(a) the Secretary of State, and

(b) such other persons as the CMA considers appropriate.

(6) The CMA must—

(a) before publishing the first guidance under this section, obtain the approval of the Secretary of State in respect of the proposed guidance;

(b) before revising or replacing any guidance published under this section, inform the Secretary of State of the proposed revision or replacement.

Defamation

213

For the purposes of the law relating to defamation, absolute privilege attaches to anything done by the CMA in exercise of its functions under this Part.

Minor and consequential amendments relating to this Part

214

Schedule 18 contains minor and consequential amendments relating to this Part.

Transitional and saving provision relating to this Part

215

Schedule 19 contains transitional and saving provision relating to this Part.

Enforcement of requirements relating to secondary ticketing

216

(1) CRA 2015 is amended as set out in subsections (2) to (4).

(2) In section 93 (enforcement of secondary ticketing provisions in Chapter 5 of Part 3)—

(a) after subsection (2) insert—

(2A) The Competition and Markets Authority may also enforce the provisions of this Chapter.

;

(b) in subsection (3) for “and (2)” substitute “, (2) and (2A)”.

(3) In paragraph 11 of Schedule 5 (investigatory powers etc: enforcer’s legislation), in the table, at the appropriate place insert—

The Competition and Markets Authority	The Breaching of Limits on Ticket Sales Regulations 2018 (S.I. 2018/735)

(4) In paragraph 6 of Schedule 10 (procedure for and appeals against financial penalties imposed under section 93: recovery)—

(a) in sub-paragraph (2) for “local weights and measures” substitute “enforcement”;

(b) in sub-paragraph (4) for “the Department of Enterprise, Trade and Investment” substitute “the enforcement authority which imposed the financial penalty”;

(d) after sub-paragraph (7) insert—

(7A) The Competition and Markets Authority may use the proceeds of a financial penalty for the purposes of any of its functions (whether or not the function is expressed to be a function of the Authority).

(5) In the Breaching of Limits on Ticket Sales Regulations 2018 (S.I. 2018/735), in regulation 5 (offences: prosecution and penalties), after paragraph (2) insert—

(3) The Competition and Markets Authority may enforce these Regulations.

Chapter 8 — Interpretation of Part

Supply of goods or digital content

217

(1) This section provides for how references to the supply of goods or digital content are to be read for the purposes of this Part.

(2) References to a person who supplies goods or digital content are to be read as including references to a person who seeks to supply goods or digital content (and references to a person who receives goods or digital content are to be read in a corresponding way).

(3) The supply of goods includes, in relation to buildings and other structures, construction of them by one person for another.

(4) References to a person supplying goods under—

(a) a hire-purchase agreement,

(b) a credit-sale agreement, or

are to be read as including references to a person who conducts any antecedent negotiations relating to the agreement.

(5) The following terms have the meanings given by section 189(1) of the Consumer Credit Act 1974—

“antecedent negotiations”;

“conditional sale agreement”;

“credit sale agreement”;

“hire-purchase agreement”.

Supply of services

218

(1) This section provides for how references to the supply of services are to be read for the purposes of this Part.

(2) References to a person who supplies services are to be read as including references to a person who seeks to supply services (and references to a person who receives services are to be read in a corresponding way).

(3) The supply of services does not include the provision of services under a contract of service or of apprenticeship.

(4) It is immaterial whether the contract mentioned in subsection (3)—

(a) is express or implied, or

(b) if express, is oral or in writing.

(5) The supply of services includes—

(a) performing for gain or reward any activity other than the supply of goods or digital content;

(b) rendering services to order;

(d) making arrangements for sharing the use of electronic communications apparatus by means of a relevant agreement, within the meaning of paragraph 18 of Schedule 3A to the Communications Act 2003 (the electronic communications code);

(e) agreeing to the full or partial settlement of a consumer’s liabilities or purported liabilities in return for the consumer meeting a demand for payment.

Accessories

219

(1) This section applies for the purposes of this Part.

(2) A person (“A”) is an accessory to a commercial practice of another person (“B”) if—

(a) B is a body corporate,

(b) A has a special relationship with B,

(d) the commercial practice takes place with the consent or connivance of A.

Special relationships

220

(1) This section applies for the purposes of this Part.

(2) A person has a special relationship with a body corporate if the person is—

(a) a controller of the body corporate, or

(b) a director, manager, secretary or other similar officer of the body corporate or a person purporting to act in such a capacity.

(3) A person is a controller of a body corporate if—

(a) the directors of the body corporate, or of another body corporate which is its controller, are accustomed to act in accordance with the person’s directions or instructions, or

(b) either alone or with one or more associates, the person is entitled to exercise or control the exercise of one third or more of the voting power at any general meeting of the body corporate or of another body corporate which is its controller.

(4) A person (“P”) is an associate of an individual if—

(a) P is the spouse or civil partner of the individual;

(b) P is a relative of the individual;

(d) P is the spouse or civil partner of a relative of the individual;

(e) P is a spouse or civil partner of a relative of the individual’s spouse or civil partner;

(f) P lives in the same household as the individual otherwise than merely because P, or the individual, is the other’s employer, tenant, lodger or boarder;

(g) P is the relative of a person who is an associate of the individual by virtue of paragraph (f);

(h) P has at some time in the past fallen within any of paragraphs (a) to (g);

(i) P is in partnership with the individual;

(j) the individual is an associate of an individual with whom P is in partnership.

(5) A person (“P”) is an associate of a body corporate if—

(a) P is a controller of the body corporate, or

(b) P is an associate of a person who is a controller of the body corporate.

(6) A body corporate is an associate of another body corporate if—

(a) the same person is a controller of both;

(b) a person (“P”) is a controller of one and persons who are P’s associates are controllers of the other;

(d) a group of two or more persons is a controller of each company and the groups consist of the same persons;

(e) a group of two or more persons is a controller of each company and the groups may be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person of whom that person is an associate.

(7) In this section “relative” means a brother, sister, uncle, aunt, nephew, niece, lineal ancestor or lineal descendant.

Enhanced consumer measures

221

(1) References in this Part to “enhanced consumer measures” are references to—

(a) redress measures (see subsection (2)),

(b) compliance measures (see subsection (3)), or

(2) Redress measures are—

(a) measures offering compensation or other redress to affected consumers;

(b) in cases where the commercial practice constituting a relevant infringement relates to a contract, measures enabling affected consumers the option to terminate (but not vary) the contract;

(c) in cases where the affected consumers cannot be identified, or cannot be identified without disproportionate cost to the person giving the undertaking in question or against whom the order in question is made, measures intended to be in the collective interests of consumers.

(3) Compliance measures are measures intended to prevent, or reduce the risk of the occurrence or repetition of, the infringing conduct (which may include measures imposed for the purpose of improving compliance with consumer law more generally).

(4) Choice measures are measures intended to enable consumers to choose more effectively between persons supplying goods, services or digital content.

(5) In this section—

(a) references to affected consumers are references to consumers who have suffered loss as a result of the infringing conduct or who have otherwise been affected in any other way by the conduct;

(b) references to the “infringing conduct” are to the conduct that has given rise to the enforcement order or undertaking concerned.

Other interpretative provisions

222

In this Part—

“business” includes— a trade, craft or profession, any other undertaking carried on for gain or reward, and the activities of any government department or local or public authority;

“enforcement order” means an order made under section 156;

“enforcer” means a public designated enforcer or a private designated enforcer;

“goods” includes— immoveable property, and rights and obligations;

“interim enforcement order” means an order made under section 159;

“interim online interface order” means an order made under section 162;

“online interface order” means an order made under section 161;

“subsidiary” has the meaning given by section 1159 of the Companies Act 2006;

“supply” includes supply by means of sale, lease, hire or hire purchase.

Index of defined expressions

223

In this Part, the expressions listed in the left-hand column have the meaning given by, or are to be interpreted in accordance with, the provisions listed in the right-hand column.

*Expression*	*Provision*
Accessory	Section 219
Appropriate court	Section 173
Business	Section 222
Commercial practice	Section 148 (2)
Consumer	Section 148 (2)
Consumer protection order	Section 166 (2)
Digital content	Section 330
Direct enforcement function	Section 197 (5)
Enactment	Section 330
Enforcement direction	Section 191 (6)
Enforcement order	Section 222
Enforcer	Section 222
Enhanced consumer measures	Section 221
Final breach of directions enforcement notice	Section 192 (2)
Final breach of undertakings enforcement notice	Section 189 (2)
Final false information enforcement notice	Section 198 (2)
Final infringement notice	Section 182 (2)
Goods	Section 222
Interim enforcement order	Section 222
Interim online interface order	Section 222
Online interface notice	Section 184 (2)
Online interface order	Section 222
Private designated enforcer	Section 151 (2)
Provisional breach of directions enforcement notice	Section 191 (2)
Provisional breach of undertakings enforcement notice	Section 188 (2)
Provisional false information enforcement notice	Section 197 (2)
Provisional infringement notice	Section 181 (3)
Public designated enforcer	Section 151 (1)
Relevant infringement	Section 148
Special relationship	Section 220
Subsidiary	Section 222
Supply of goods	Section 217
Supply of services	Section 218
Trader	Section 148 (2)
Turnover	Section 204
United Kingdom national	Section 330

Part 4 — Consumer rights and disputes

Chapter 1 — Protection from unfair trading

Introduction

Overview

224

(1) This Chapter confers protections on consumers from unfair commercial practices.

(2) Section 225 sets out what are unfair commercial practices and prohibits the use and promotion of them.

(3) Sections 226 to 230 provide more detail about commercial practices which are unfair because they are misleading, aggressive or omit material information, or because they contravene the requirements of professional diligence.

(4) Section 231 requires, or confers power on, specified public bodies to enforce the prohibitions in section 225.

(5) Sections 232 to 235 confer rights on consumers in relation to unfair commercial practices and make related provision.

(6) Section 236 sets out what happens when a trader supplies a product to a consumer that the consumer has not requested.

(7) Sections 237 to 241 create criminal offences in relation to unfair commercial practices and make related provision.

(8) Sections 242 to 252 contain miscellaneous and interpretative provisions in relation to this Chapter.

Prohibition of unfair commercial practices

225

(1) Unfair commercial practices are prohibited.

(2) The promotion of unfair commercial practices in, or in connection with, a code of conduct by—

(a) a person responsible for the content of a code of conduct, or

(b) a person responsible for monitoring compliance with a code of conduct,

is prohibited.

(3) In this Chapter—

“commercial practice” means an act or omission by a trader relating to the promotion or supply of— the trader’s product to a consumer, another trader’s product to a consumer, or a consumer’s product to the trader or another person;

“consumer” means an individual acting for purposes that are wholly or mainly outside the individual’s business;

“trader” means— a person (“P”) acting for purposes relating to P’s business, or a person acting in the name of, or on behalf of, P for purposes relating to P’s business.

(4) A commercial practice is unfair if—

(a) it is likely to cause the average consumer to take a transactional decision that the consumer would not have taken otherwise as a result of the practice involving one or more of the following—

(i) a misleading action (see section 226);

(ii) a misleading omission (see section 227);

(iii) an aggressive practice (see section 228);

(iv) a contravention of the requirements of professional diligence (see section 229),

(b) it omits material information from an invitation to purchase (see section 230), or

(5) It is immaterial for the purposes of the definition of “commercial practice” in subsection (3) whether the act or omission takes place—

(a) at the time of the promotion or supply in question, or

(b) before or after that time.

(6) It is immaterial for the purposes of the definition of “trader” in subsection (3)—

(a) in relation to paragraph (a) of that definition, whether P is acting personally or through another person acting in P’s name or on P’s behalf;

(b) in relation to paragraph (b) of that definition, whether or not the purposes relating to P’s business are the only or main purposes for which the person is acting.

Misleading actions

226

(1) For the purposes of this Chapter, a commercial practice involves a misleading action if the practice involves—

(a) the provision of false or misleading information relating to a product, a trader or any other matter relevant to a transactional decision,

(b) an overall presentation which is likely to deceive the average consumer about a matter relating to a product, a trader or any other matter relevant to a transactional decision,

(c) any marketing of a product which creates confusion, or is likely to create confusion, with any product, trade mark, trade name or other distinguishing mark of another trader, or

(d) a failure to comply with a requirement in a code of conduct to which subsection (5) applies in circumstances where the trader asserts that the trader acts in compliance with that code.

(2) In subsection (1)(a), the reference to misleading information includes a reference to information which, although true, is presented in a misleading way.

(3) For the purposes of subsection (1)(b), an overall presentation may be deceiving even if the information it contains is true.

(4) In subsection (1)(c), the reference to another trader is a reference to a trader other than the trader supplying the product that is being marketed.

(5) This subsection applies to a requirement in a code of conduct if—

(a) there is no discretion afforded to the trader in relation to the requirement, and

(b) compliance with the requirement is capable of being verified.

Misleading omissions

227

(1) For the purposes of this Chapter, a commercial practice involves a misleading omission if, considering the matters mentioned in subsection (3), the practice—

(a) omits material information,

(b) omits information which the trader is required under any other enactment to give to a consumer as part of the practice, or

(2) In subsection (1)(a), “material information” means information that the average consumer needs to take an informed transactional decision.

(3) The matters referred to in subsection (1) are—

(a) any limitations resulting from the means of communication used in the commercial practice (including limitations of space or time), and

(b) any steps taken by the trader to overcome those limitations by providing information by other means.

(4) In this section, references to omitting information include providing information—

(a) in a way that is unclear or untimely, or

(b) in such a way that the consumer is unlikely to see it.

Aggressive practices

228

(1) For the purposes of this Chapter, a commercial practice involves an aggressive practice if it uses harassment, coercion or undue influence.

(2) In determining whether a commercial practice uses harassment, coercion or undue influence, account must be taken of—

(a) the nature of the practice;

(b) the timing and location of the practice;

(d) whether the practice exploits any vulnerability of a consumer (including any vulnerability of a kind mentioned in section 247 (4));

(e) whether the practice involves a threat to take action which cannot legally be taken;

(f) whether the practice requires a consumer to take onerous or disproportionate action in order to exercise rights that the consumer has in relation to a product.

(3) In this section—

(a) “coercion” includes the use or threat of physical force;

(b) “undue influence” means exploiting a position of power in relation to a consumer so as to apply pressure in a way which significantly limits the consumer’s ability to make an informed decision.

Contravention of the requirements of professional diligence

229

For the purposes of this Chapter, a commercial practice involves a contravention of the requirements of professional diligence if the practice falls short of the standard of skill and care which a trader may reasonably be expected to exercise towards consumers which is commensurate with either—

(a) honest market practice in the trader’s field of activity, or

(b) the general principle of good faith in the trader’s field of activity.

Omission of material information from invitation to purchase

230

(1) For the purposes of this Chapter, a commercial practice which is an invitation to purchase omits material information if, considering the matters mentioned in subsection (8), it omits any of the information which is—

(a) set out in subsection (2), and

(b) not already apparent from the context.

(2) The information referred to in subsection (1) is—

(a) the main characteristics of the product (to the extent appropriate considering the means used to communicate the invitation to purchase and the nature of the product);

(b) the total price of the product (so far as paragraph (c) does not apply);

(c) if, owing to the nature of the product, the whole or any part of the total price cannot reasonably be calculated in advance, how the price (or that part of it) will be calculated;

(d) the identity of the trader and the identity of any other person on whose behalf the trader is acting;

(e) the business address and, if different, the service address of the trader and any business email address of the trader;

(f) in relation to any other person on whose behalf the trader is acting—

(i) the person’s business address and business email address (if the person has such addresses), and

(ii) if different to the person’s business address, the person’s service address;

(g) any freight, delivery or postal charges, including any taxes, not included in the total price of the product but which the consumer may choose to incur (or where those additional charges or taxes cannot reasonably be calculated in advance, the fact that they may be payable);

(h) for products involving a right of withdrawal or cancellation, the existence of such a right;

(i) to the extent that the trader’s practice in relation to any of the arrangements mentioned in subsection (3) departs from the trader’s published practice in relation to those arrangements, the practice which the trader is currently operating;

(j) any information which the trader is required under any other enactment to give to a consumer as part of an invitation to purchase.

(3) The arrangements referred to in subsection (2)(i) are—

(a) the arrangements for payment;

(b) the arrangements for delivery of the product;

(d) the arrangements for handling complaints.

(4) For the purposes of subsection (2)(b) the total price of a product includes any fees, taxes, charges or other payments that the consumer will necessarily incur if the consumer purchases the product.

(5) For the purposes of subsection (2)(c) (and subject to the matters mentioned in subsection (8)) the information given must—

(a) be such that it enables the consumer to calculate the total price, and

(b) be set out with as much prominence as any information that is set out in compliance with subsection (2)(b).

(6) For the purposes of subsection (2)(d) “identity”, in relation to a trader, means—

(a) the name of the trader, and

(b) if different, the name under which the trader trades.

(7) For the purposes of subsection (2)(e)—

“business address”, in relation to a person, means— where the person is a body corporate, the address of its registered or principal office, where the person is a firm that is not a body corporate, the address of the principal office of the firm, or in a case where neither paragraph (a) or (b) applies, the address of the person’s principal place of business;

“business email address”, in relation to a person, means any email address used by the person for conducting business;

“service address”, in relation to a person, means the address at which the person will accept service of documents.

(8) The matters referred to in subsection (1) are—

(a) any limitations resulting from the means of communication used in the commercial practice (including limitations of space or time), and

(b) any steps taken by the trader to overcome those limitations by providing information by other means.

(9) In this section, references to omitting information include providing information—

(a) in a way that is unclear or untimely, or

(b) in such a way that the consumer is unlikely to see it.

(10) In this Chapter, “invitation to purchase” means a commercial practice involving the provision of information to a consumer—

(a) which indicates the characteristics of a product and its price, and

(b) which enables, or purports to enable, the consumer to decide whether to purchase the product or take another transactional decision in relation to the product.

Public enforcement

231

(1) It is the duty of every local weights and measures authority in Great Britain to enforce in its area the prohibitions in section 225.

(2) It is the duty of the Department for the Economy in Northern Ireland to enforce the prohibitions in section 225 in Northern Ireland.

(3) The CMA may also enforce the provisions of this Chapter.

(4) In exercising functions under this section, every local weights and measures authority in Great Britain, the Department for the Economy in Northern Ireland and the CMA must have regard to the desirability of encouraging control of unfair commercial practices by such established means as it considers appropriate having regard to all the circumstances of the particular case.

(5) Nothing in this section authorises a local weights and measures authority in Great Britain to bring proceedings in Scotland for an offence.

Consumers’ rights of redress relating to unfair commercial practices

Rights of redress

232

(1) A consumer has rights of redress under this Chapter if each of the following four conditions is met.

(2) The first condition is that—

(a) the consumer enters into a contract with a trader under which the trader supplies a product to the consumer (a “business-to-consumer contract”),

(b) the consumer enters into a contract with a trader under which—

(i) the consumer supplies a product to the trader, and

(ii) the trader does not supply a product to the consumer (a “consumer-to-business contract”), or

(3) The second condition is that—

(a) the trader engages in a prohibited practice in relation to the product, or

(b) in a case where a consumer enters into a business-to-consumer contract for goods or digital content—

(i) a producer engages in a prohibited practice in relation to the goods or digital content, and

(ii) when the contract is entered into, the trader is aware of the commercial practice that constitutes the prohibited practice or could reasonably be expected to be aware of it.

(4) The third condition is that the prohibited practice is a significant factor in the consumer’s decision—

(a) to enter into the contract mentioned in subsection (2)(a) or (b), or

(b) to make the payment mentioned in subsection (2)(c).

(5) The fourth condition is that the product concerned is not a product excluded from the application of rights of redress by regulations under section 233.

(6) In subsection (3), “producer” means—

(a) a manufacturer of the goods or digital content,

(b) an importer of the goods or digital content into the United Kingdom, or

(c) a person purporting to be such a manufacturer or importer by placing the person’s name, trade mark or other distinctive sign on the goods or by using it in connection with the digital content,

and includes a producer acting personally or through another person acting in the producer’s name or on the producer’s behalf.

(7) In this Chapter, “prohibited practice” means an unfair commercial practice involving—

(a) a misleading action, or

(b) an aggressive practice.

(8) For the purposes of subsection (7), section 225 (4)(a) applies as if the reference to a transactional decision were a reference to any decision taken by a consumer to—

(a) enter into a business-to-consumer contract,

(b) enter into a consumer-to-business contract, or

Rights of redress: further provision

233

(1) The Secretary of State may by regulations provide for any of the following descriptions of rights to be exercisable by a consumer who has rights of redress under this Chapter—

(a) a right to unwind in respect of a relevant contract or consumer payment;

(b) a right to a discount in respect of a supply of a product under a relevant contract;

(2) Regulations under this section may include provision—

(a) about how a right is to be exercised by the consumer;

(b) for an amount of discount mentioned in subsection (1)(b) to be determined in accordance with the regulations;

(d) imposing conditions or restrictions on the exercise of a right;

(e) about the consequences of the exercise of a right;

(f) excluding products of a description specified in the regulations from the application of the rights of redress available under this Chapter.

(3) Provision under subsection (2)(e) about the consequences of the exercise of a right may (among other things)—

(a) provide for the termination of a relevant contract;

(b) require the trader to make a refund of an amount determined in accordance with the regulations;

(4) In this section, “relevant contract” means—

(a) a business-to-consumer contract;

(b) a consumer-to-business contract.

(5) Regulations under this section are subject to the affirmative procedure.

Enforcement of rights of redress

234

(1) A consumer with a right to unwind, a right to a discount or a right to damages by virtue of regulations under section 233 may bring a claim in civil proceedings to enforce that right.

(2) In Scotland, proceedings to enforce a right to unwind may be brought before the Sheriff or the Court of Session.

(3) If in proceedings under this section the consumer establishes that the consumer has one of the rights mentioned in subsection (1), the court must make an order that gives effect to—

(a) that right, and

(b) any associated obligations of the consumer imposed by regulations under section 233.

(4) The Limitation Act 1980 applies to a claim under this section in England and Wales as if it were an action founded on simple contract.

(5) The Limitation (Northern Ireland) Order 1989 (S.I. 1989/1339 (N.I. 11)) applies to a claim under this section in Northern Ireland as if it were an action founded on simple contract.

Relationship between rights of redress and other claims relating to prohibited practices

235

(1) Nothing in this Chapter affects the ability of a consumer to make a claim under a rule of law or equity, or under an enactment, in respect of conduct constituting a prohibited practice.

(2) But a consumer may not—

(a) make a claim to be compensated under a rule of law or equity, or under an enactment, in respect of such conduct if the consumer has been compensated in respect of the conduct by virtue of regulations under section 233, or

(b) make a claim to be compensated under this Chapter in respect of such conduct if the consumer has been compensated under a rule of law or equity, or under an enactment, in respect of the conduct.

Inertia selling

236

(1) This section applies where a trader engages in the unfair commercial practice described at paragraph 31 of Schedule 20.

(2) The consumer is exempted from any obligation to pay for (or provide any other consideration for) the products supplied by the trader.

(3) In the case of a supply of goods that has not been requested, the consumer may, as between the consumer and the trader, use, deal with or dispose of the goods as if they were an unconditional gift to the consumer.

(4) The absence of a response from a consumer following the supply of the product does not constitute consent from the consumer to comply with the trader’s demand for the consumer to—

(a) pay for the product;

(b) return the product;

Offences relating to unfair commercial practices

Offences

237

(1) A trader commits an offence if, in breach of section 225 (1), the trader engages in an unfair commercial practice which involves a misleading action within section 226 (1)(a), (b) or (c) (see section 225 (4)(a)(i)).

(2) A trader commits an offence if, in breach of section 225 (1), the trader engages in an unfair commercial practice which involves a misleading omission (see section 225 (4)(a)(ii)).

(3) A trader commits an offence if, in breach of section 225 (1), the trader engages in an unfair commercial practice which involves an aggressive practice (see section 225 (4)(a)(iii)).

(4) A trader commits an offence if, in breach of section 225 (1)—

(a) the trader engages in an unfair commercial practice which involves a contravention of the requirements of professional diligence (see section 225 (4)(a)(iv)), and

(b) the trader knows, or is reckless as to whether, the commercial practice involves a contravention of the requirements of professional diligence.

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