{
  "url": "https://openlegislation.uk/communications-act-2003/schedule-16B/paragraph-3",
  "json_url": "https://openlegislation.uk/communications-act-2003/schedule-16B/paragraph-3.json",
  "legislation": "ukpga/2003/21",
  "legislation_title": "Communications Act 2003",
  "legislation_url": "https://openlegislation.uk/communications-act-2003",
  "path": "schedule/16B/paragraph/3",
  "kind": "paragraph",
  "number": "3",
  "heading": "Liability of parent entities for failures by subsidiary entities",
  "text": "(1) This paragraph applies where—\n(a) OFCOM are satisfied that there are grounds for giving a person—\n(i) a confirmation decision which requires the person to take steps or imposes a penalty (or both), or\n(ii) a penalty notice,\nin respect of a service of a type specified in sub-paragraph (2) that is or was at any time provided by the person,\n(b) the person is an entity (“E”), and\n(c) there is another entity which is a parent undertaking in relation to E (a “parent entity”).\n(2) The types of service referred to in sub-paragraph (1)(a) are—\n(a) a regulated television selection service;\n(b) a designated internet programme service;\n(c) a designated radio selection service;\n(d) a relevant internet radio service.\n(3) The confirmation decision or penalty notice may be given—\n(a) to E alone, or\n(b) jointly to E and to a parent entity.\n(4) Before giving a penalty notice to a parent entity, or giving a confirmation decision to a parent entity which was not previously given a provisional notice of contravention relating to the same matter, OFCOM must give that entity an opportunity to make representations to OFCOM about—\n(a) the matters contained in the penalty notice or confirmation decision, and\n(b) whether joint and several liability would be appropriate.\n(5) OFCOM may not give a confirmation decision or a penalty notice to a parent entity (“P”) if—\n(a) P meets the condition in section 1162(2)(a) of the Companies Act 2006 in relation to E, and\n(b) P makes representations to OFCOM, in pursuance of paragraph 2(7) or sub-paragraph (4), that satisfy OFCOM that P does not meet any condition in section 1162(2)(b), (c) or (d) or (4) of that Act in relation to E.\n(6) If a confirmation decision or a penalty notice is given to entities jointly under sub-paragraph (3)(b), those entities are jointly and severally liable to comply with the requirements or (as the case may be) pay the penalty imposed by the decision or notice.\n(7) See also paragraph 4 of Schedule 16A.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 16B inserted (23.8.2024) by Media Act 2024 (c. 15), s. 55(3)(g), Sch. 11; S.I. 2024/858, reg. 2(1)(z5)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/21/schedule/16B/paragraph/3",
    "retrieved_at": "2026-10-29T09:18:16.154105+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}