Key Facts

• Clause 165 sets out which UK courts have jurisdiction to hear consumer protection orders based on the consumer’s place of domicile.
• Clause 166 extends the effect of consumer protection orders made in one part of the UK to other parts, eliminating any jurisdictional gap within the UK.
• Clause 168 gives courts discretionary power to make requirements binding on interconnected corporate groups of infringers.
• Clause 170 empowers the court to compel traders to substantiate factual claims made as part of their commercial practices.
• Clause 165 determines which UK courts have jurisdiction over applications for consumer protection orders.
• Clause 168 allows a court to extend a consumer protection order to other members of a corporate group if it is just, reasonable and proportionate.
• Clause 170 enables the court to require evidence from traders to substantiate claims made in commercial practices with consumers.
• Witnesses have stated that customers want quick redress and businesses seek justice.
• The government's approach involves heading for the courts which is criticized due to existing backlogs.
• No agreement with Citizens Advice or set funding has been established to support individuals in taking cases through the courts.
• Clauses 172 to 176 set out new enforcement powers for the CMA.
• The CMA can investigate suspected infringements with reasonable grounds.
• Provisional infringement notices provide rights to know claims against them and make representations.
• Final infringement notices may impose monetary penalties up to £300,000 or 10% of total turnover.
• Enhanced consumer measures can be included in final infringement notices if deemed just, reasonable and proportionate.
• Online interface notices can be issued to avoid serious harm to consumers' collective interest.
• Clause 172 introduces provisions empowering the CMA to investigate commercial practices that could infringe on consumer protection.
• Provisional infringement notices under clause 173 require details of proposed directions and a process for representation by the enforcement subject.
• Clause 174 grants the CMA discretion to issue final infringement notices with monetary penalties up to £300,000 or 10% of total value of the enforcement subject’s turnover.
• Amendment 60 adds a provision for including enhanced consumer measures (ECMs) in undertakings under clause 177.
• Amendment 61 requires the CMA to detail appeal rights in final breach of undertaking enforcement notices.
• Clauses 178 and 180 set out procedural requirements for variations or releases from undertakings, and enforcement actions respectively.
• Government amendment 60 ensures requirements imposed by undertakings given under clause 177 may include enhanced consumer measures.
• Clause 182 sets the maximum penalty for a breach of undertakings notice at £150,000 or 5% of total turnover, whichever is higher.
• A daily rate penalty can be up to £15,000 or 5% of daily turnover.
• Clauses 183 to 188 deal with enforcement of CMA directions.
• Clause 185 sets a maximum penalty amount of £150,000 or 5% of total turnover, whichever is higher.
• The daily rate penalty can be up to £15,000 or 5% of the daily turnover value.
• Clause 189 grants the CMA power to issue provisional false information enforcement notices.
• Clause 190 enables the CMA to issue final false information enforcement notices imposing a penalty of up to £30,000 or 1% of total turnover.
• Clauses empower the CMA to enforce against false or misleading information provided without reasonable excuse.
• Clause 191 requires the CMA to produce a statement of policy on monetary penalties and seek approval from the Secretary of State.
• Clause 192 gives the CMA power to bind final notice requirements on interconnected corporate groups if deemed just, reasonable, and proportionate.
• Clause 195 mandates that court orders or CMA notices imposing monetary penalties include critical information about appeal rights.
• Clause 191 requires CMA to produce a statement of policy on monetary penalties.
• Clause 192 gives CMA discretionary power to impose requirements on interconnected corporate groups.
• Clause 193 introduces record-keeping and reporting requirements for enforcement actions.
• Clause 194 allows appeals against decisions to impose monetary penalties.
• Clause 195 sets out information required in orders or final notices related to penalties.
• Clause 196 includes a definition of turnover for calculating penalties.
• Clause 197 provides delegated power to the Secretary of State to amend fixed and daily penalties.
• Clause 200 introduces schedule 15 to amend provisions in the Consumer Rights Act 2015.
• Schedule 15 provides courts with a new power to impose civil monetary penalties for non-compliance with information notices given by any consumer enforcer.
• It also gives CMA direct enforcement powers to decide compliance and impose penalties if necessary.
• Clause 200 introduces schedule 15 of the Bill.
• Schedule 15 amends schedule 5 of the Consumer Rights Act 2015.
• The amendments allow for enforcement notices to specify circumstances leading to financial penalties.
• Clause 202 sets out permissible means for CMA notices.
• Clause 203 permits CMA to delegate decision making for direct enforcement functions.
• Clause 204 requires public consultation before rules take effect.
• Schedule 17 provides transitional and saving provision in relation to court-based and CMA direct enforcement regimes.
• Government amendments 62, 63, and 65 ensure legislative consistency.
• Clause 203 allows the CMA to make rules subject to approval through secondary legislation.
• The negative parliamentary procedure is used for varying or revoking rules under clause 204.
• Guidance from the CMA will be published after Royal Assent, expected by autumn 2024.
• Amendment clarifies definition of 'the old law' for transitional provisions in relation to Part 3.
• Schedule 17 includes clarification on investigatory powers conferred on enforcers under CRA 2015.
• Order of the Committee varied by omitting time reference from paragraph 1(f).