Digital Markets, Competition and Consumers Act 2024

• (4) Subsections (5) and (6) apply where—

• (a) a trader enters into a contract that is an excluded contract,

• (b) but for it being an excluded contract, the contract would have been a subscription contract, and

• (c) on a later day (the “relevant day”), the contract ceases to be an excluded contract and, accordingly, becomes a subscription contract.

• (5) This Chapter applies to the contract with the following modifications—

• (a) sections 256 and 257 (pre-contract information) do not apply;

• (b) section 258 (reminder notices) applies as if—

• (i) in subsection (1), the reference to a trader entering into a subscription contract with a consumer that does not involve a concessionary period were a reference to a trader entering into the contract,

• (ii) the reference in subsection (2)(a) to the day that the contract was entered into were a reference to the relevant day, and

• (iii) subsections (3), (4) and (6) were omitted;

• (c) section 259 (content and timing etc of reminder notices) applies as if, in subsections (3) and (4), references to the period specified by the trader in pre-contract information were references to the period specified by the trader in information given under subsection (6) of this section;

• (d) section 262 (terms implied into contracts) applies as if—

• (i) in paragraph (a), the reference to the duty set out in section 256(1)(a) were a reference to the duty set out in subsection (6) of this section;

• (ii) paragraph (b) was omitted;

• (iii) in paragraph (d), the reference to pre-contract information were a reference to the information given under subsection (6) of this section;

• (e) section 264 (right to cancel during cooling-off periods) applies as if subsection (1)(a) were omitted.

• (6) As soon as reasonably practicable after the relevant day, and in any event before the end of 12 months beginning with that day, the trader must give to the consumer key pre-contract information and full pre-contract information in relation to the contract, other than any such information that is excluded by subsection (7).

• (7) Information is excluded by this subsection if—

• (a) it relates to the initial cooling-off period under the contract;

• (b) it relates to a period mentioned in section 254(3)(a) (initial concessionary period) and the relevant day falls after the end of that period.

• (8) For the purposes of the duty under subsection (6)—

• (a) it is irrelevant whether any of the information required has already been given to the consumer before the relevant day,

• (b) section 256(5) applies as it applies for the purposes of the duty under section 256(1)(b), and

• (c) paragraph 13 of Schedule 23 is to be ignored.

Crown application

276

• (1) Subject to subsection (2), this Chapter binds the Crown.

• (2) The Crown is not criminally liable as a result of anything in this Chapter.

• (3) Subsection (2) does not affect the application of any provision of this Chapter in relation to persons in the public service of the Crown.

Power to make further provision in connection with this Chapter

277

• (1) The Secretary of State may by regulations make provision—

• (a) about how and when information or a notice that a trader is required to give to a consumer under this Chapter may or must be given;

• (b) about the information that is to be contained in a notice given under this Chapter;

• (c) about the arrangements that a trader must make under section 260 to enable a consumer to exercise a right to bring a subscription contract to an end, and about when a consumer may exercise such a right;

• (d) specifying the period of time within which the refund of an overpayment must be made under section 261(2)(b);

• (e) specifying descriptions of cases for the purposes of section 273(2) (and about the day on which a contract renews for those purposes).

• (2) Regulations under subsection (1)(c) may include (among other things) provision restricting the period of notice that a trader may require a consumer to give to bring a subscription contract to an end.

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

Consequential amendments

Consequential amendments to the Consumer Rights Act 2015

278

• (1) CRA 2015 is amended as follows.

• (2) In section 11 (goods to be as described)—

• (a) in subsection (4), after “(SI 2013/3134)” insert “, or in paragraph 14 of Schedule 23 to the Digital Markets, Competition and Consumers Act 2024,”, and

• (b) in subsection (5), after “effective” insert “as a variation of a term implied by subsection (4)”.

• (3) In section 12 (other pre-contract information included in contract)—

• (a) after subsection (2) insert—

(2A) Where section 256(1) of the Digital Markets, Competition and Consumers Act 2024 (pre-contract information) required the trader to give information, or make information available, to the consumer, any of that information that was provided by the trader other than information about goods mentioned in paragraph 14 of Schedule 23 to that Act is to be treated as included as a term of the contract.

, and

• (b) in subsection (3)—

• (i) for “that information” substitute “the information that is to be treated as a term of a contract under subsection (2) or (2A)”, and

• (ii) after “effective” insert “as a variation of a term implied by subsection (2) or (2A)”.

• (4) In section 36 (digital content to be as described)—

• (a) in subsection (3), after “(SI 2013/3134)” insert “, or in paragraph 14 or 27 of Schedule 23 to the Digital Markets, Competition and Consumers Act 2024,”, and

• (b) in subsection (4), after “effective” insert “as a variation of a term implied by subsection (3)”.

• (5) In section 37 (other pre-contract information included in contract)—

• (a) after subsection (2) insert—

(2A) Where section 256(1) of the Digital Markets, Competition and Consumers Act 2024 (pre-contract information) required the trader to give information, or make information available, to the consumer, any of that information that was provided by the trader other than information about digital content mentioned in paragraph 14 or 27 of Schedule 23 to that Act is to be treated as included as a term of the contract.

;

• (b) in subsection (3)—

• (i) for “that information” substitute “the information that is to be treated as a term of a contract under subsection (2) or (2A)”, and

• (ii) after “effective” insert “as a variation of a term implied by subsection (2) or (2A)”.

• (6) In section 50 (information about the trader or service to be binding)—

• (a) in subsection (3), after “(SI 2013/3134)” insert “, or in accordance with section 256(1) of the Digital Markets, Competition and Consumers Act 2024,”, and

• (b) in subsection (4), after “effective” insert “as a variation of a term implied by subsection (3)”.

• (7) In paragraph 10 of Schedule 5 to CRA 2015 (investigatory powers: enforcer’s legislation), at the appropriate place insert—

• Section 271(2) and (3) of the Digital Markets, Competition and Consumers Act 2024;

.

Other consequential amendments

279

• (1) In Schedule 3 to the Regulatory Enforcement and Sanctions Act 2008, at the appropriate place insert—

• Digital Markets, Competition and Consumers Act 2024, Chapter 2 of Part 4.

.

• (2) In EA 2002—

• (a) in Schedule 14 (provisions about disclosure of information) at the appropriate place insert—

• Chapter 2 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.

;

• (b) in Schedule 15 (enactments conferring functions) at the appropriate place insert—

• Chapter 2 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.

• (3) The Consumer Contracts (Information Cancellation and Additional Charges) Regulations 2013 (S.I. 2013/3134) is amended as follows.

• (4) In regulation 5 (other definitions), at the appropriate place insert—

• “subscription contract” has the meaning it has in Chapter 2 of Part 4 of the Digital Markets, Competition and Consumers Act 2024 (see section 254 of that Act);

.

• (5) After regulation 7(4) (application of Part 2) insert—

(4A) This Part does not apply to a subscription contract entered into after section 256 of the Digital Markets, Competition and Consumers Act 2024 comes into force.

• (6) After regulation 27(3) (application of Part 3) insert—

(3A) This Part does not apply to a subscription contract entered into after section 264 of the Digital Markets, Competition and Consumers Act 2024 comes into force.

General interpretation

Interpretation

280

• (1) In this Chapter—

• “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;

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

• “durable medium” means paper, email or any other medium that— allows information to be addressed personally to the consumer, enables the consumer to store information in a way accessible for future reference for a period that is long enough for the purposes of the information, and allows the unchanged reproduction of information stored;

• “goods” includes— immoveable property; rights and obligations; water, gas and electricity if they are put up for sale in a limited volume or set quantity;

• “trader” means a person (“P”) acting for purposes relating to P’s business, whether acting personally or through another person acting in P’s name or on P’s behalf.

• (2) In this Chapter—

• (a) references to a contract for the supply of goods, services or digital content include references to a contract for the supply of any combination of goods, services and digital content;

• (b) references to payment or to a consumer being charged are references to payment, or a consumer being charged, in money or money’s worth;

• (c) references to something happening automatically under a subscription contract are references to it happening without any action on the part of the consumer to cause it to happen (ignoring the consumer’s action of entering into the contract or any action taken in connection with, or for the purpose of, entering into it);

• (d) references to something recurring are references to it happening more than once;

• (e) references to a supply of goods, services or digital content for a fixed term include references to a supply of goods, services or digital content which is fixed to any extent;

• (f) references to a consumer entering into a subscription contract include references to a consumer placing an order for the supply of goods, services or digital content under a subscription contract in circumstances where—

• (i) the trader is (in any way) inviting such orders, and

• (ii) the consumer is not required to take any further action for the contract to be concluded.

Index of defined expressions

281

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
Business	Section 280(1)
Consumer	Section 280(1)
Cooling-off notice	Section 266(1)
Digital content	Section 330
Durable medium	Section 280(1)
Excluded contract	Section 255
Full pre-contract information	Section 256(1)(b)
Goods	Section 280(1)
Initial cooling-off period	Section 265(1)
Key pre-contract information	Section 256(1)(a)
Reminder notice	Section 258
Renewal cooling-off period	Section 265(2)
Renewal payment	Section 258(7)
Subscription contract	Section 254
Trader	Section 280(1)
Working day	Section 330

Chapter 3 — Consumer Savings Schemes

Meaning of “consumer savings scheme contract”

282

• (1) For the purposes of this Chapter, a consumer savings scheme contract is a contract—

• (a) under which—

• (i) a consumer makes payments to a trader,

• (ii) the trader credits those payments to an account that is held by the trader for the consumer (“the consumer’s account”), and

• (iii) the payments credited to the consumer’s account provide a fund for the consumer to redeem as goods, services or digital content in accordance with the terms of the contract,

• (b) to which one or more of subsections (2), (3) or (4) applies, and

• (c) which is not an excluded arrangement (see section 284).

• (2) This subsection applies to a contract if it contains terms which have the effect of restricting the times at, or periods of time during, which the consumer may redeem funds from the consumer’s account.

• (3) This subsection applies to a contract if it contains terms which have the effect of incentivising the consumer to redeem, or refrain from redeeming, funds in the consumer’s account at a time, or during a period of time, specified in the terms of the contract.

• (4) This subsection applies to a contract if it is marketed or advertised in such a way as to encourage the consumer to redeem, or refrain from redeeming, funds in the consumer’s account at a time, or during a period of time, specified in material used for the purposes of marketing or advertising the contract.

Other defined terms

283

• (1) In this Chapter, references to a trader operating a consumer savings scheme are references to a trader entering into a consumer savings scheme contract.

• (2) For the purposes of section 282(1)(a)(ii), it is sufficient for a trader to hold the consumer’s payments in some way other than crediting those payments to a specific account for that consumer and references in this Chapter to a “consumer’s account” are to be construed accordingly.

• (3) In this Chapter, “protected payments” are payments, made by a consumer under a consumer savings scheme contract, in respect of which funds in the consumer’s account have not been redeemed.

• (4) Subject to subsection (5), in this Chapter, funds are treated as redeemed when the trader provides the consumer with goods, services or digital content in accordance with the terms of the consumer savings scheme contract.

• (5) Where a trader provides a consumer with vouchers or credit-tokens which may be redeemed only in respect of goods, services or digital content provided by that trader, funds are treated as redeemed for the purposes of this Chapter only when those vouchers or credit-tokens are redeemed.

Excluded arrangements

284

• (1) An arrangement is an excluded arrangement for the purposes of this Chapter if it is of a description set out in Schedule 24.

• (2) The Secretary of State may by regulations amend Schedule 24 so as to—

• (a) add a description of an arrangement to the Schedule;

• (b) remove a description of an arrangement from the Schedule;

• (c) modify a description of an arrangement set out in the Schedule.

• (3) The power under subsection (2)(a) and (c) includes power to provide for an arrangement to be an excluded arrangement—

• (a) generally for the purposes of this Chapter;

• (b) only for such purposes of this Chapter as are specified.

• (4) Regulations under subsection (2) are subject to the affirmative procedure.

Insolvency protection requirement

285

• (1) A trader operating a consumer savings scheme must make and maintain the arrangements set out in section 286 (insurance arrangements) or in section 287 (trust arrangements) to cover, in the event of the trader’s insolvency, the cost of returning to the consumer any protected payments at the time of the insolvency.

• (2) It is an implied term of every consumer savings scheme contract that the trader complies with the requirements of this section.

• (3) A trader operating a consumer savings scheme in the United Kingdom, who is not established in the United Kingdom, must comply with the requirements of this section.

• (4) References in this Chapter to a trader’s insolvency are references to—

• (a) a bankruptcy order having been made in relation to the trader (or, in Scotland, the trader’s estate having been sequestrated),

• (b) a winding up order having been made in relation to the trader as a result of the trader’s insolvency,

• (c) an appointment of a liquidator (otherwise than following the making of a winding up order) as a result of the trader’s insolvency,

• (d) the trader being in administration,

• (e) the appointment of an administrative receiver (or, in Scotland, a receiver) in relation to the trader, or

• (f) in any jurisdiction, the trader being subject to an order or procedure that corresponds to any order or procedure mentioned in paragraphs (a) to (e).

Insurance arrangements

286

• (1) Where a trader relies on arrangements under this section for the purpose of satisfying section 285, the trader must maintain insurance under one or more appropriate policies with an insurer authorised in respect of such business in the United Kingdom, the Channel Islands or the Isle of Man.

• (2) In this section “appropriate policy” means a policy—

• (a) under which the insurer agrees to indemnify consumers in the event of the insolvency of the trader;

• (b) under which consumers are insured persons in respect of the costs referred to in paragraph (d);

• (c) which does not contain a condition which provides (in whatever terms) that no liability arises, or that any liability arising ceases—

• (i) in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy;

• (ii) in the event of the policy holder not making payments under or in connection with other policies; or

• (iii) unless the policy holder keeps specified records or makes available to, or provides the insurer with, information from those records; and

• (d) which covers the costs of returning to the consumer any protected payments at the time of the insolvency.

• (3) The trader must meet the costs of arranging and maintaining an appropriate policy and any related charges or taxes, without recourse to the consumer payments which are to be protected under that policy.

Trust arrangements

287

• (1) Where a trader relies on arrangements under this section for the purpose of satisfying section 285, the trader must ensure that all payments made by a consumer under a consumer savings scheme contract are held on trust for the consumer, in the United Kingdom, by one or more persons appointed as trustees for the consumer.

• (2) Subject to subsection (3), the monies are to be held on trust for the consumer as required by subsection (1) until—

• (a) the funds in the consumer’s account have been redeemed, or

• (b) any payments made by the consumer in respect of the consumer savings scheme contract have been returned to the consumer.

• (3) The trustees may authorise the use of monies held on trust for the consumer as required by subsection (1)—

• (a) to pay suppliers for goods, services or digital content to be provided to the consumer in accordance with the terms of the consumer savings scheme contract,

• (b) to return payments to the consumer in exceptional circumstances, or

• (c) to pay any profits after the consumer has redeemed all of the funds in their account.

• (4) For the purposes of subsection (3)(a), trustees may only authorise the release of monies on receipt of a declaration by the trader that the trader is solvent.

• (5) The trustee, or where there is more than one trustee, the majority of persons appointed as trustees for the purpose of subsection (1), must be independent of the trader.

• (6) For the purpose of subsection (5), a person is independent of the trader in relation to a trust only if—

• (a) the person has no interest in the assets of the trader or of the trust otherwise than as a trustee of that trust, and

• (b) the person is neither connected with, nor an associate of—

• (i) the trader, or

• (ii) any person for the time being acting as an insolvency practitioner in relation to the trader.

• (7) The cost of administering the trust must be paid for by the trader.

• (8) The trader must arrange for an independent auditor to be appointed to audit the accounts of the trust every three years.

• (9) In the event of a trader’s insolvency, monies held on trust for a consumer by the trustees in accordance with this section must be returned to the consumer.

Information requirements

288

• (1) A trader must, before the end of 30 working days beginning with the day on which a consumer makes the first payment to the trader under a consumer savings scheme contract, provide to the consumer the following information—

• (a) the name, address, telephone number and email address of the insurer or trustees responsible for protecting the consumer’s payments;

• (b) where insurance arrangements are in place, the policy number for the policy under which the consumer’s payments are protected;

• (c) where trust arrangements are in place, a copy of the trust deed under which the consumer’s payments are held.

• (2) The trader must notify the consumer of any change to any of the information provided under subsection (1) before the end of 30 working days, beginning with the day on which the change takes effect.

• (3) Where a consumer makes a written request to the trader for the information mentioned in subsection (1), the trader must, before the end of 30 working days beginning with the day on which the request is received, provide, without charge, the information requested.

• (4) The information provided under this section must be in clear and plain language and, if in writing, in a legible form.

• (5) The information provided under this section must—

• (a) in cases where the contract is to be entered into in the simultaneous physical presence of the trader and the consumer, be given in writing on a durable medium;

• (b) in cases where the contract is to be entered into online without the simultaneous physical presence of the trader and the consumer—

• (i) be given in writing by being displayed in any location online where the consumer may take steps to enter into the contract, and

• (ii) be accessible in that location without the need for any action by the consumer;

• (c) in cases where the contract is to be entered into orally without the simultaneous physical presence of the trader and the consumer, be given to the consumer orally and in a way that is audible and comprehensible.

• (6) In cases not falling within subsection (5)(a) the trader must also, as soon as reasonably practicable after the contract has been entered into, give the consumer the information in writing on a durable medium.

• (7) A trader operating a consumer savings scheme in the United Kingdom, who is not established in the United Kingdom, must comply with the requirements of this section.

• (8) It is an implied term of every consumer savings scheme contract that the trader complies with the requirements of this section.

• (9) The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (S.I. 3134/2013) apply to consumer savings scheme contracts to the extent that requirements under those regulations are not met by compliance with this section.

Consequential amendments

289

• (1) In Schedule 3 to the Regulatory Enforcement and Sanctions Act 2008 (enactments specified for the purposes of Part 1), at the appropriate place insert—

• “Digital Markets, Competition and Consumers Act 2024, Chapter 3 of Part 4

.

• (2) In EA 2002—

• (a) in Schedule 14 (provisions about disclosure of information) at the appropriate place insert—

• Chapter 3 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.

;

• (b) in Schedule 15 (enactments conferring functions) at the appropriate place insert—

• Chapter 3 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.

Interpretation

290

In this Chapter—

• “business” includes— a trade, craft or profession, and any other undertaking carried on for gain or reward, but does not include the activities of any government department or local or public authority;

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

• “durable medium” means, in relation to the provision of information, paper, email or any other medium that— allows the information to be addressed personally to the consumer, enables the consumer to store the information in a way accessible for future reference for a period that is long enough for the purposes of the information, and allows the unchanged reproduction of the information stored;

• “excluded arrangement” is to be read in accordance with section 284;

• “goods” includes vouchers, rights and obligations but does not include buildings or other structures or immovable property;

• “trader” means a person (“P”) acting for purposes relating to P’s business whether acting personally or through another person acting in P’s name or on P’s behalf;

• “turnover” has the same meaning as in section 204 (determination of turnover) and references to “this Part” in section 204 are to be read, for the purposes of this Chapter, as references to this Chapter.

Chapter 4 — Alternative dispute resolution for consumer contract disputes

Interpretation of Chapter 4

Meaning of “ADR” and related terms

291

• (1) This section has effect for the purposes of this Chapter.

• (2) “ADR” means any method of securing or facilitating an out-of-court resolution of a consumer contract dispute that is carried out by an independent third party acting in relation to both parties to the dispute.

• (3) But the term “ADR” does not include anything carried out by a person in their capacity as—

• (a) a judge, or

• (b) a member of the staff of a court or tribunal.

• (4) The following are examples of ADR (if carried out as mentioned in subsection (2) in relation to a consumer contract dispute)—

• (a) mediation;

• (b) arbitration;

• (c) early neutral evaluation;

• (d) action under an ombudsman scheme.

• (5) In subsection (2) “resolution” includes—

• (a) a decision binding both parties;

• (b) a decision which, if accepted by the consumer, binds the trader;

• (c) settlement of the dispute between the parties.

• (6) “ADR provider” means a person who does either or both of the following—

• (a) carrying out ADR in relation to a consumer contract dispute, or

• (b) making special ADR arrangements.

• (7) “Special ADR arrangements” are (subject to subsection (8)) arrangements made by an ADR provider with another person (whether or not that other person is an exempt or accredited ADR provider) for ADR to be carried out by that other person in relation to one or more consumer contract disputes.

• (8) Arrangements made by a person acting for only one of the parties to a consumer contract dispute are not special ADR arrangements.

• (9) For the meaning of “exempt ADR provider” and “exempt redress scheme” see section 295.

• (10) “Accredited ADR provider” means a person who is for the time being accredited under this Chapter (whether or not their accreditation is limited to particular descriptions of ADR or special ADR arrangements).

• (11) In this section “judge” includes—

• (a) a member of a tribunal,

• (b) a justice of the peace or, in Northern Ireland, a lay magistrate,

• (c) a clerk or other officer entitled to exercise the jurisdiction of a court or tribunal, and

• (d) a holder of any other public office with functions of a judicial nature.

Other definitions

292

• (1) This section has effect for the purposes of this Chapter.

• (2) “Consumer contract” means (subject to the following provisions of this section) a contract between a trader and a consumer which is—

• (a) a contract to which Chapter 2 of Part 1 of CRA 2015 (contracts to supply goods) applies;

• (b) a contract to which Chapter 3 of that Part (contracts to supply digital content) applies;

• (c) a contract to which Chapter 4 of that Part (contracts to supply services) applies;

• (d) a mixed contract, that is to say a contract to which any two or three of those Chapters apply (see section 1(3) and (4) of that Act).

• (3) The reference in subsection (2)(a) to a contract to which Chapter 2 of Part 1 of CRA 2015 applies includes a reference to—

• (a) a contract between a gas supplier and a consumer for the supply of gas to any premises;

• (b) a contract deemed by paragraph 8(1) or (2) of Schedule 2B to the Gas Act 1986, or by section 12(1) or (2) of the Energy Act (Northern Ireland) 2011 (c. 6 (N.I.)), to exist between a gas supplier and a consumer for the supply of gas to any premises;

• (c) a contract between an electricity supplier and a consumer for the supply of electricity to any premises;

• (d) a contract deemed to exist by paragraph 3(1) or (2) of Schedule 6 to the Electricity Act 1989 or by paragraph 3(1) or (2) of Schedule 6 to the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I.1));

• (e) the terms applying as between a water supplier and a consumer in respect of the supply of water to any premises by a water supplier.

• (4) In subsection (3)—

• “electricity supplier” means a person who is authorised to supply electricity by a licence or exemption under Part 1 of the Electricity Act 1989 or Part 2 of the Electricity (Northern Ireland) Order 1992;

• “gas supplier” means a person who is authorised to supply gas by a licence or exemption under Part 1 of the Gas Act 1986 or Part 2 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I.2));

• “water supplier” means— a water undertaker or a water supply licensee within the meaning of the Water Industry Act 1991, a person supplying water under a water services licence within the meaning of the Water Services etc. (Scotland) Act 2005 (asp 3), or a water undertaker within the meaning of the Water and Sewerage Services (Northern Ireland) Order 2006 (S.I. 2006/3336 (N.I.21)).

• (5) The reference in subsection (2)(c) to a contract to which Chapter 4 of CRA 2015 applies includes a contract between a heat supplier and a consumer for the supply of heating, cooling or hot water by means of thermal energy provided from a heat network.

• (6) In subsection (5)—

• “heat network” has the meaning given by section 216 of the Energy Act 2023, and

• “heat supplier” means a person who charges for making a supply of heating, cooling or hot water by means of thermal energy provided from a heat network.

• (7) In the application of provisions of Part 1 of CRA 2015 for determining whether a contract is a consumer contract for the purposes of this Chapter, the following provisions are to be disregarded—

• (a) section 32(2) (provisions excluded from the operation of section 32(1));

• (b) section 48(5) (power to exclude services from scope of Chapter 4 of Part 1).

• (8) The Secretary of State may by regulations provide that contracts of a description specified in the regulations are excluded from being consumer contracts for the purposes of this Chapter.

• (9) The power in subsection (8) includes power to provide that the exclusion only applies in circumstances specified in the regulations.

• (10) Regulations under subsection (8) are subject to the affirmative procedure.

• (11) “Consumer contract dispute” means a dispute between the parties to a consumer contract which relates to the contract, including a dispute concerning—

• (a) anything done by either party before making the contract,

• (b) the making of the contract,

• (c) obligations under or relating to the contract, or

• (d) the performance by either party of their obligations under or relating to the contract.

• (12) In subsection (11) “dispute” means a legal dispute, that is to say one which may be determined by a court or tribunal in proceedings brought by either of the parties to the contract.

• (13) The “parties” to a consumer contract, or a consumer contract dispute, are the consumer and the trader.

• (14) The following terms have the meaning given by section 2 of CRA 2015—

• “consumer”

• “goods”

• “trader”.

But in interpreting the term “consumer” section 2(4) to (6) of that Act is to be disregarded.

Prohibition on acting as ADR provider without accreditation etc

Prohibitions relating to acting as ADR provider

293

• (1) A person must not carry out ADR in relation to a consumer contract dispute unless the person—

• (a) is an exempt ADR provider whose exemption covers the ADR being carried out,

• (b) is an accredited ADR provider whose accreditation covers the ADR being carried out, or

• (c) is acting under special ADR arrangements made by—

• (i) an exempt ADR provider whose exemption covers the making of those special ADR arrangements, or

• (ii) an accredited ADR provider whose accreditation covers the making of those special ADR arrangements.

• (2) A person must not make special ADR arrangements in relation to any one or more consumer contract disputes unless the person is—

• (a) an exempt ADR provider whose exemption covers the making of those special ADR arrangements, or

• (b) an accredited ADR provider whose accreditation covers the making of those special ADR arrangements.

Prohibitions relating to charging fees to consumers

294

• (1) An accredited ADR provider must not charge the consumer a fee in respect of ADR being carried out (or to be carried out) in relation to a consumer contract—

• (a) by the accredited ADR provider, or

• (b) by another ADR provider under special ADR arrangements made by the accredited ADR provider,

unless the fee is charged in accordance with provisions for the charging of fees to consumers which meet the conditions in subsection (2).

• (2) The conditions are that the provisions in question—

• (a) have been made by the accredited ADR provider,

• (b) are approved by the Secretary of State for the purposes of this subsection, and

• (c) are published in a manner likely to come to the attention of consumers whose consumer contract disputes may be dealt with by the accredited ADR provider.

• (3) An ADR provider who carries out (or is to carry out) ADR in relation to a consumer contract dispute under special ADR arrangements must not charge the consumer any fee in respect of carrying out the ADR in question.

Exempt ADR providers

Exempt ADR providers

295

• (1) In this Chapter—

• “exempt ADR provider” means a person who— is listed (or of a description of persons listed) in Part 1 of Schedule 25, or is (when carrying out ADR or making special ADR arrangements) acting under or for the purposes of an exempt redress scheme;

• “exempt redress scheme” means a scheme or other similar arrangement which is listed (or of a description listed) in Part 2 of Schedule 25.

• (2) The Secretary of State may by regulations amend Schedule 25 for the purpose of—

• (a) adding a new entry in Part 1 or 2;

• (b) varying or removing an entry for the time being included in Part 1 or 2;

• (c) varying the supplementary provision in Part 3.

• (3) Regulations under subsection (2) may, in particular—

• (a) provide for an entry in Part 1 of Schedule 25 to apply to a specified person or to any person of a specified description;

• (b) provide for an entry in Part 2 of that Schedule to apply to a specified scheme or any scheme of a specified description;

• (c) limit the scope of the exemption given to a person by virtue of an entry in Part 1 or 2 of that Schedule, whether in relation to carrying out ADR or making special ADR arrangements (or both).

• (4) For the purposes of subsection (3)—

• (a) descriptions of ADR may be framed by reference to kinds of ADR or types of dispute (or both), and

• (b) descriptions of special ADR arrangements may be framed by reference to any features of such arrangements, including in particular the kinds of ADR involved or the types of dispute involved (or both).

• (5) Subject to any limitation on its scope provided for by Schedule 25—

• (a) an exemption given to a person by virtue of an entry in Part 1 of that Schedule covers anything done by the person in the exercise of the person’s functions that would otherwise be prohibited, and

• (b) an exemption given to a person by virtue of an entry in Part 2 of that Schedule covers anything done under or for the purposes of an exempted redress scheme that would otherwise be prohibited.

• (6) In this section—

• “prohibited” means prohibited by section 293(1) or (2);

• “specified” means specified in the regulations.

• (7) Regulations under subsection (2) are subject to the negative procedure.

Accreditation: procedure etc

Applications for accreditation or variation of accreditation

296

• (1) A person who wishes to be an accredited ADR provider must—

• (a) apply to the Secretary of State for accreditation to enable the person to carry out ADR or to make special ADR arrangements (or to do both), and

• (b) pay to the Secretary of State the appropriate application fee (if any) prescribed by regulations under section 300.

• (2) An application for accreditation to carry out ADR may be limited to one or more particular descriptions of ADR.

• (3) An application for accreditation to make special ADR arrangements may be limited to one or more particular descriptions of special ADR arrangements.

• (4) An accredited ADR provider may apply to the Secretary of State for their accreditation to be varied by the addition, variation or removal of—

• (a) any limitation affecting the descriptions of ADR or special ADR arrangements (as the case may be) covered by the accreditation, or

• (b) any condition on the accreditation.

• (5) An application under subsection (4) must be accompanied by the appropriate application fee (if any) prescribed by regulations under section 300.

• (6) The Secretary of State may determine the procedure to be followed in relation to an application for accreditation or an application for the variation of an accreditation.

• (7) The matters which may be determined under subsection (6) include (among other things)—

• (a) the form in which applications are to be made;

• (b) the particular descriptions of ADR for which limited accreditation may be applied for and granted;

• (c) the particular descriptions of special ADR arrangements for which limited accreditation may be applied for and granted;

• (d) the information to be given by applicants.

• (8) Section 295(4) applies for the purposes of subsection (7) as it applies for the purposes of section 295(3).

• (9) The Secretary of State must publish anything determined under subsection (6) in a manner likely to come to the attention of potential applicants for accreditation.

• (10) The powers of the Secretary of State under subsection (6) may be exercised differently for different purposes.

Determination of applications for accreditation or variation of accreditation

297

• (1) This section applies where an application for accreditation, or for the variation of an accreditation, has been made to the Secretary of State (and has not been withdrawn).

• (2) In the case of an application for accreditation, the Secretary of State must, as soon as is reasonably practicable—

• (a) consider the application,

• (b) decide whether—

• (i) to grant the accreditation applied for,

• (ii) to grant a more limited accreditation, or

• (iii) to refuse the application, and

• (c) give notice in writing to the applicant of the decision and, in the case of a decision mentioned in paragraph (b)(ii) or (iii), the reasons for the decision.

• (3) Accreditation granted under subsection (2)(b)(ii) may be limited to such descriptions of ADR or such descriptions of special ADR arrangements (or both) as the Secretary of State considers appropriate and specifies in the accreditation.

• (4) If accreditation is granted, the Secretary of State may also decide to impose conditions on the accreditation.

• (5) The Secretary of State may only grant accreditation if satisfied that the accreditation criteria will be met by or in relation to the applicant after accreditation is granted.

• (6) An accreditation is not time limited unless—

• (a) the Secretary of State determines that it is to have effect for a limited period, and

• (b) the notice of the decision on the application states that the accreditation is time limited and specifies the period for which it has effect.

• (7) The notice of a decision to grant accreditation must specify the day on which the accreditation takes effect.

• (8) In the case of an application for the variation of an accreditation, the Secretary of State must, as soon as is reasonably practicable—

• (a) consider the application,

• (b) decide whether—

• (i) to grant the application,

• (ii) to vary the accreditation, but to a different extent than applied for, or

• (iii) to refuse the application, and

• (c) give notice in writing to the applicant of the decision and, in the case of a decision mentioned in paragraph (b)(ii) or (iii), the reasons for the decision.

• (9) If the Secretary of State decides to vary the accreditation under subsection (8)(b)(i) or (ii), the Secretary of State may also decide—

• (a) to impose new conditions on the accreditation, or

• (b) to vary or remove any existing condition on the accreditation.

• (10) The Secretary of State may only vary an accreditation if satisfied that the accreditation criteria will be met by or in relation to the applicant after the accreditation is varied.

• (11) A variation of an accreditation is not time limited unless the Secretary of State determines that the variation is to have effect only for a limited period and the notice of the decision on the application for variation—

• (a) states that the variation is time limited (unless made permanent following a subsequent application by the ADR provider),

• (b) specifies the period for which the variation has effect, and

• (c) makes provision as to the terms of the accreditation in the event that the variation lapses at the end of that period.

• (12) The notice of a decision to vary an accreditation must specify the day on which the variation takes effect.

• (13) Where the Secretary of State decides—

• (a) to impose conditions under subsection (4), or

• (b) to impose new conditions, or to remove or vary any existing condition on the accreditation, under subsection (9),

the notice of the decision on the relevant application must set out the conditions on the accreditation or the accreditation as varied, and give the Secretary of State’s reasons for the decisions made under subsection (4) or (9) (as the case may be).

• (14) Where an accreditation covers the making of special ADR arrangements, conditions on the accreditation may be framed so as to secure that the accredited ADR provider is responsible for acts or omissions of other ADR providers who carry out ADR under special ADR arrangements made by the accredited ADR provider.

Revocation or suspension of accreditations etc

298

• (1) This section confers powers on the Secretary of State in relation to the accreditation of an accredited ADR provider.

• (2) The Secretary of State may, by notice to the ADR provider, revoke the accreditation on the application of the ADR provider.

• (3) Subsection (4) applies in relation to the ADR provider where the Secretary of State considers that any one or more of the following conditions are met—

• (a) the ADR provider is contravening, or has contravened, any of the prohibitions in section 293 and 294;

• (b) the ADR provider is failing, or has failed, to comply with any of the accreditation criteria;

• (c) the ADR provider is failing, or has failed, to comply with any conditions on its accreditation;

• (d) the ADR provider is failing, or has failed, to comply with an enforcement notice under section 302.

• (4) The Secretary of State may by notice to the ADR provider—

• (a) vary the accreditation, by doing either or both of the following—

• (i) limiting, or further limiting, the accreditation to such descriptions of ADR or such descriptions of special ADR arrangements (or both) as the Secretary of State considers appropriate, and

• (ii) imposing new conditions on the accreditation, varying any existing condition or removing any existing condition,

• (b) suspend the accreditation, or

• (c) revoke the accreditation.

• (5) In subsection (4)(a)(i) the reference to limiting (or further limiting) the accreditation to particular descriptions of ADR or of special ADR arrangements includes, in particular, limiting it to ADR relating to consumer contract disputes that have already been referred for ADR or to special ADR arrangements that already exist (as the case may be), whether for a limited period or otherwise.

• (6) Before giving such a notice the Secretary of State must give the ADR provider a reasonable opportunity to make representations as to—

• (a) whether one or more of the conditions mentioned in subsection (3) are met in relation to the ADR provider, and

• (b) if so, what action (if any) it is appropriate for the Secretary of State to take under subsection (4).

• (7) Any variations made under subsection (4)(a) must be variations the Secretary of State considers necessary to secure compliance with the prohibitions in sections 293 and 294, the accreditation criteria, the existing conditions on the accreditation or the enforcement notice (as the case may be).

• (8) In subsection (7) “existing conditions” means the existing conditions disregarding any previous variations made under subsection (4)(a) or (9)(b).

• (9) Where variations of the accreditation are made under subsection (4)(a), the Secretary of State must—

• (a) keep those variations under review, and

• (b) by notice to the ADR provider vary the accreditation for the purpose of revoking or reversing the effect of all or any of the variations, to the extent that the Secretary of State considers that they are no longer necessary for the purpose set out in subsection (7).

• (10) A notice that the accreditation is being varied must specify the day on which the variations take effect.

• (11) A notice that the accreditation is suspended or revoked must specify the day on which the accreditation ceases to be in force.

• (12) Where the accreditation is suspended the notice must also set out when or in what circumstances the suspension is to cease to have effect so that the accreditation is again in force.

• (13) The provision required by subsection (12) may consist of any one or more of the following—

• (a) provision for the suspension to cease to have effect at the end of a period specified in the notice,

• (b) provision for it to cease to have effect on the satisfaction of conditions specified in the notice, and

• (c) provision for it to cease to have effect when a decision to lift it is made by the Secretary of State and notified to the ADR provider.

Fees payable by accredited ADR providers

299

• (1) Accredited ADR providers must pay to the Secretary of State, at such times as may be prescribed, the appropriate prescribed fee (if any).

• (2) In subsection (1) “prescribed” means prescribed by regulations under section 300.

ADR fees regulations

300

• (1) The Secretary of State may by regulations make provision about the following descriptions of fees, namely—

• (a) fees to be paid by applicants for accreditation under section 296(1);

• (b) fees to be paid by applicants for the variation of their accreditation under section 296(5);

• (c) fees to be paid by accredited ADR providers under section 299(1).

• (2) The power to make provision about a description of fees includes power to provide—

• (a) for fees of different specified amounts to be payable in different cases or circumstances;

• (b) for cases or circumstances in which no fees are to be payable;

• (c) in the case of fees to be paid under section 299, the times at which the fees are to be paid.

• (3) In making regulations under this section the Secretary of State must have regard to the need to secure that, taking one year with another—

• (a) the total amount of fees paid does not exceed the costs to the Secretary of State of carrying out functions under this Chapter;

• (b) the total amount of fees paid under section 296(1) does not exceed the costs to the Secretary of State of processing and determining applications for accreditation;

• (c) the total amount of fees paid under section 296(5) does not exceed the costs to the Secretary of State of processing and determining applications for the variation of an accreditation.

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

Accreditation criteria

301

• (1) For the purposes of this Chapter the accreditation criteria are the criteria set out in Schedule 26.

• (2) The Secretary of State may by regulations amend Schedule 26 for the purpose of—

• (a) adding a new criterion, or

• (b) removing or varying any criterion for the time being set out in that Schedule.

• (3) Regulations under subsection (2) are subject to the affirmative procedure.

Enforcement of prohibitions etc

Enforcement notices

302

• (1) The Secretary of State may give an enforcement notice to an ADR provider if satisfied that the provider is contravening, or has contravened, any one or more of the following—

• (a) the prohibition in section 293(1) or (2);

• (b) the prohibition in section 294(1) or (3);

• (c) a condition on its accreditation;

• (d) the duty to pay a fee due under section 299(1);

• (e) a duty imposed by regulations under section 303;

• (f) a duty imposed by a direction under section 304.

• (2) Before reaching a final view as to whether or not to give an enforcement notice to an ADR provider, the Secretary of State must give the provider a reasonable opportunity to make representations as to—

• (a) whether the condition in subsection (1) is met, and

• (b) if so, whether an enforcement notice should be given to it.

• (3) An enforcement notice is a notice requiring the ADR provider in question to do, or not to do, such things as are specified in the notice or are of a description so specified, with a view to securing compliance with the prohibition, condition or duty in question.

• (4) An enforcement notice may—

• (a) include requirements for the ADR provider to give information to the Secretary of State, or

• (b) include other supplementary, incidental or consequential provision.

• (5) The notice must make clear, in particular—

• (a) what requirements are being imposed by the notice, and

• (b) when they are to be complied with (whether immediately or otherwise).

• (6) The Secretary of State may, by notice to the ADR provider to whom an enforcement notice has been given—

• (a) revoke the enforcement notice, or

• (b) revoke any requirement contained in the notice and, if necessary, make any consequential changes to the other provisions of the notice.

• (7) The power under subsection (6) may be exercised on the application of the ADR provider or otherwise.

• (8) An enforcement notice may, with the permission of the High Court or the Court of Session, be enforced as if it were an order made by that court.

• (9) The Secretary of State may publish information about enforcement notices given under this section.

Provision of Information etc

ADR information regulations

303

• (1) The Secretary of State may by regulations require persons of a specified description (being persons within subsection (2))—

• (a) to provide ADR information to the Secretary of State;

• (b) to provide ADR information to a person with functions conferred by regulations under section 307;

• (c) to provide ADR information to consumers by publishing it.

• (2) Regulations under this section may impose requirements on—

• (a) accredited ADR providers,

• (b) exempt ADR providers,

• (c) persons (not being accredited or exempt ADR providers) who carry out ADR under special ADR arrangements,

• (d) persons who have been, but are no longer, within paragraph (a), (b) or (c),

• (e) regulators, but only in relation to relevant ADR information (see section 306(2)).

• (3) The power to impose requirements under subsection (1)(a) or (b) may only be exercised for the purpose of enabling or facilitating one or more of the following—

• (a) publication of ADR information for the benefit of consumers;

• (b) monitoring or evaluation of the operation of the system of accreditation under this Chapter;

• (c) monitoring or evaluation of the provision and quality of ADR carried out in the United Kingdom.

• (4) It is immaterial for the purposes of subsection (3) whether the publication, monitoring or evaluation is carried out by the Secretary of State, by a person with functions conferred by regulations under section 307 or by any other person acting under arrangements made with that other person by the Secretary of State or a person with such functions.

• (5) Regulations under this section may provide for—

• (a) the ADR information to be provided or published;

• (b) the manner in which it is to be provided or published;

• (c) the intervals or times at which it is to be provided or published;

• (d) time limits for providing or publishing it.

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

ADR information directions

304

• (1) The Secretary of State may give a direction to any person falling within subsection (2) requiring the person to provide ADR information to the Secretary of State.

• (2) A direction may be given to—

• (a) an accredited ADR provider,

• (b) an exempt ADR provider,

• (c) a person (not being an accredited or exempt ADR provider) who carries out ADR under special ADR arrangements,

• (d) a person who has been an accredited or exempt ADR provider or a person mentioned in paragraph (c), or

• (e) a regulator, but only in relation to relevant ADR information (see section 306(2)).

• (3) A direction may only be given—

• (a) for the purpose of enabling or facilitating one or more of the following (whether done by the Secretary of State or by another person under arrangements made with the Secretary of State)—

• (i) publication of ADR information for the benefit of consumers;

• (ii) monitoring or evaluation of the operation of the system of accreditation under this Chapter;

• (iii) monitoring or evaluation of the provision and quality of ADR carried out in the United Kingdom, or

• (b) for any other purpose connected with the exercise of the Secretary of State’s functions under this Chapter.

• (4) A direction may provide for—

• (a) the ADR information to be provided;

• (b) the manner in which it is to be provided;

• (c) time limits for providing it.

• (5) A person to whom a direction is given must so far as reasonably practicable comply with it.

• (6) The duty to comply with a direction is enforceable by the Secretary of State in civil proceedings—

• (a) for an injunction,

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

• (c) for any other appropriate remedy or relief.

• (7) In this section “direction” means a direction under this section.

Disclosure of ADR information by the Secretary of State

305

• (1) This section applies to any ADR information relating to ADR providers which—

• (a) is provided to the Secretary of State in response to regulations under section 303 or a direction under section 304, or

• (b) is otherwise held by the Secretary of State for the purposes of any function of the Secretary of State under this Chapter.

• (2) The Secretary of State may publish information to which this section applies for the purpose of providing information to consumers.

• (3) The Secretary of State may disclose information to which this section applies—

• (a) to any Minister of the Crown, government department or devolved authority;

• (b) to a regulator;

• (c) to a public designated enforcer (see section 151).

• (4) This section does not affect any power to disclose information apart from this section.

• (5) In this section “devolved authority” means the Welsh Ministers, the Scottish Ministers or a Northern Ireland Department.

Meaning of “ADR information” and other terms in sections 303 to 305

306

• (1) In sections 303 to 305 “ADR information” means any information about or relating to—

• (a) an ADR provider,

• (b) ADR carried out by an ADR provider,

• (c) special ADR arrangements made by an ADR provider.

• (2) In those sections “relevant ADR information”, in relation to requirements imposed on a regulator, means any information about or relating to—

• (a) ADR carried out by a relevant ADR provider,

• (b) special ADR arrangements made by a relevant ADR provider,

• (c) ADR carried out by ADR providers acting under special ADR arrangements made by a relevant ADR provider, or

• (d) anything done by the regulator which directly or indirectly affects a relevant ADR provider so far as relating to anything falling within paragraphs (a) to (c).

• (3) In subsection (2) “relevant ADR provider”, in relation to a regulator, means an accredited or exempt ADR provider—

• (a) who is subject to regulation by the regulator, or

• (b) whose activities (as an ADR provider) relate to consumer contract disputes involving traders acting in an area for which the regulator has responsibility or oversight under any legislation.

• (4) In this section—

• (a) a reference to information about ADR carried out by an ADR provider includes, in the case of ADR carried out by an accredited or exempt ADR provider, information about fees charged to consumers or traders in respect of carrying out ADR, and

• (b) a reference to information about special ADR arrangements includes information about fees charged to consumers or traders by the ADR provider who made the arrangements.

• (5) In this section references to ADR carried out by an ADR provider include ADR to be carried out by the provider.

• (6) In this section and sections 303 to 305, “regulator” means a person who has responsibility for, or oversight of, an area of activity by virtue of any legislation.

Involvement of other bodies in the regulation of ADR providers

Power to provide for other persons to have accreditation functions etc

307

• (1) The Secretary of State may by regulations make provision for or in connection with the conferring on another person of any function falling within subsection (2) so far as it is exercisable in such cases or circumstances as may be prescribed by the regulations, in place of the corresponding function of the Secretary of State.

• (2) The functions which may be the subject of regulations under this section are functions corresponding to functions of the Secretary of State under the following provisions of this Chapter as originally enacted—