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The Consumer Protection (Enforcement) (Amendment etc.) (EU Exit) Regulations 2018

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2018, ISBN 9780111176139

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before Parliament under paragraph 1(3) of Schedule 7 to the European Union (Withdrawal) Act 2018, for approval by resolution of each House of Parliament.

Exiting The European Union

Consumer Protection

Made ***

Coming into force in accordance with regulation 1

The Secretary of State makes these Regulations in exercise of the powers conferred by section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018f1.

In accordance with paragraph 1(3) of Schedule 7 to that Act, a draft of this instrument has been laid before Parliament and approved by a resolution of each House of Parliament.

Annotations to the whole text

Footnotes

f1

2018 c.16.

Contents

  1. Part 1: Introduction
  2. 1Citation and commencement
  3. 2Interpretation
  4. Part 2: Amendment of primary legislation
  5. 3Amendment of the Enterprise Act 2002
  6. 4Amendment of the Consumer Rights Act 2015
  7. 5Amendment of the Data Protection Act 2018
  8. Part 3: Amendment and revocation of subordinate legislation
  9. 6Amendment of the Enterprise Act 2002 (Part 8 Designated Enforcers: Criteria for Designation, Designation of Public Bodies as Designated Enforcers and Transitional Provisions) Order 2003
  10. 7Revocation of orders made under section 212(3) of the Enterprise Act 2002
  11. Part 4: Revocation of retained direct EU legislation
  12. 8Revocation of Regulation (EC) No 2006/2004
  13. Part 5: Transitional provisions
  14. 9Post-exit day enforcement of Community infringements: general rule
  15. 10Post-exit day enforcement of Community infringements: exceptions to general rule
  16. Signature
  17. Schedule Substituted Schedule 13 to the Enterprise Act 2002
  18. Explanatory note

1Citation and commencement

These Regulations may be cited as the Consumer Protection (Enforcement) (Amendment etc.) (EU Exit) Regulations 2018 and come into force on exit day.

2Interpretation

In these Regulations, “the 2002 Act” means the Enterprise Act 2002f1.

3Amendment of the Enterprise Act 2002

(1)

The 2002 Act is amended as follows.

(2)

In section 210 (consumers)—

(a)

in subsection (6)—

(i)

for “Community infringement” substitute “Schedule 13 infringement”;

(ii)

for paragraphs (a) and (b) substitute “the listed enactment concerned”;

(b)

after subsection (6) insert—

“(6A)

An enactment is a listed enactment if it is specified in Schedule 13 or to the extent that it is so specified.

(6B)

References to an enactment include—

(a)

references to subordinate legislation (within the meaning of the Interpretation Act 1978f1);

(b)

for the purposes of paragraph 6 of Schedule 13, references to a rule of law in Scotland;

(c)

for the purposes of paragraph 16 of Schedule 13, references to rules forming part of the law of any part of the United Kingdom made other than under an Act.”;

(c)

omit subsections (7) and (7A).

(3)

For section 212 (Community infringements), substitute—

“Schedule 13 infringements

212.
(1)

In this Part a Schedule 13 infringement is an act or omission which contravenes a listed enactment and which harms the collective interests of consumers.

(2)

References to a listed enactment must be construed in accordance with section 210.”

(4)

In section 213 (enforcers)—

(a)

omit subsection (5);

(b)

in subsection (5A), for “(being bodies or persons designated by the Secretary of State under Article 4(1) or 4(2) of the CPC Regulation) is a CPC enforcer” substitute “is a Schedule 13 enforcer”;

(c)

omit subsections (10) and (11).

(5)

In section 214 (consultation), in subsection (2)(d), for “Community infringement” substitute “Schedule 13 infringement”.

(6)

In section 215 (applications)—

(a)

in subsection (1), for “Community infringement” substitute “Schedule 13 infringement” in both places where it occurs;

(b)

omit subsection (4);

(c)

in subsection (4A)—

(i)

for “CPC enforcer” substitute “Schedule 13 enforcer”;

(ii)

for “Community infringement” substitute “Schedule 13 infringement”;

(d)

omit subsections (6), (7) and (8).

(7)

In section 216 (applications: directions by CMA), omit subsection (6).

(8)

In section 217 (enforcement orders), in subsection (2), for “Community infringement” substitute “Schedule 13 infringement”.

(9)

In section 218 (interim enforcement order)—

(a)

in subsection (1)(a), for “Community infringement” substitute “Schedule 13 infringement” in both places where it occurs;

(b)

in subsection (4), for “Community infringement” substitute “Schedule 13 infringement”.

(10)

In section 218A (unfair commercial practices: substantiation of claims), in subsection (1)—

(a)

for “Community infringement” substitute “Schedule 13 infringement”;

(b)

for the words from “Directive 2005/29/EC of the European Parliament” to the end of the subsection, substitute “the Consumer Protection from Unfair Trading Regulations 2008f2”.

(11)

In section 219 (undertakings)—

(a)

in subsection (3)(c), for “Community infringement” substitute “Schedule 13 infringement”;

(b)

in subsection (5A), for “CPC enforcer” substitute “Schedule 13 enforcer”;

(c)

in subsection (5B)—

(i)

for “CPC enforcer” substitute “Schedule 13 enforcer”;

(ii)

for “Community infringement” substitute “Schedule 13 infringement”.

(12)

In section 219A (definition of enhanced consumer measures), in subsection (5)(c), for “CPC enforcer” substitute “Schedule 13 enforcer”.

(13)

In section 220 (further proceedings), in subsection (2), for “CPC enforcer” substitute “Schedule 13 enforcer”.

(14)

Omit section 221 (Community infringements: proceedings).

(15)

In section 222 (bodies corporate: accessories), in subsection (1), for “Community infringement” substitute “Schedule 13 infringement”.

(16)

In section 229 (advice and information), in subsection (6), for “general or CPC enforcer or a designated enforcer” substitute “enforcer”.

(17)

Omit sections 235 (Injunctions Directive) and 235A (CPC Regulation).

(18)

In section 235B (dual enforcers), for “CPC enforcer” substitute “Schedule 13 enforcer” in both places where it occurs.

(19)

In section 243f3 (overseas disclosures), in subsection (12)(c), for “an order under section 212(3)” substitute “Schedule 13”.

(20)

For Schedule 13 (Listed Directives and Regulations), substitute the Schedule set out in the Schedule to these Regulations.

4Amendment of the Consumer Rights Act 2015

(1)

Schedule 5 (investigatory powers etc.) to the Consumer Rights Act 2015f1 is amended as follows.

(2)

In paragraph 2 (enforcers), for “an EU enforcer” substitute “a Schedule 13 enforcer” in both places where it occurs.

(3)

In the italic heading before paragraph 4, for “EU enforcers” substitute “Schedule 13 enforcers”.

(4)

For paragraph 4 substitute—

“4.

 In this Schedule “Schedule 13 enforcer” means a person or body which is a Schedule 13 enforcer under section 213(5A) of the Enterprise Act 2002.”

(5)

In paragraph 8 (interpretation of other terms), for “Community infringement” substitute “Schedule 13 infringement”.

(6)

In paragraph 13 (exercise of powers in this Part)—

(a)

omit sub-paragraph (2)(c);

(b)

in sub-paragraph (3), for “an EU enforcer” substitute “a Schedule 13 enforcer”;

(c)

in sub-paragraph (10), omit the definition of “Community enforcer”.

(7)

In the heading of Part 4, for “EU enforcers” substitute “Schedule 13 enforcers”.

(8)

In the italic heading before paragraph 20, for “EU enforcers” substitute “Schedule 13 enforcers”.

(9)

In paragraph 20—

(a)

in sub-paragraph (1), for “an EU enforcer” substitute “a Schedule 13 enforcer”;

(b)

in sub-paragraph (2)—

(i)

for “an EU enforcer” substitute “a Schedule 13 enforcer”;

(ii)

for “CPC enforcer” substitute “Schedule 13 enforcer”;

(c)

in sub-paragraph (3), for “EU enforcer” substitute “Schedule 13 enforcer”;

(d)

in sub-paragraph (3)(a), for “Community infringement” substitute “Schedule 13 infringement”;

(e)

in sub-paragraphs (4) and (5), for “An EU enforcer” substitute “A Schedule 13 enforcer”;

(f)

in sub-paragraph (5)(a), for “Community infringement” substitute “Schedule 13 infringement”;

(g)

in sub-paragraph (6), for “An EU enforcer” substitute “A Schedule 13 enforcer”.

(10)

In paragraph 32 (power to enter premises with warrant)—

(a)

in sub-paragraph (3)(b)—

(i)

for “an EU enforcer” substitute “a Schedule 13 enforcer”;

(ii)

for “Community infringement as defined in section 212 of the Enterprise Act 2002” substitute “Schedule 13 infringement”;

(b)

in sub-paragraph (3)(c), for “an EU enforcer” substitute “a Schedule 13 enforcer”.

(11)

In paragraph 41 (compensation)—

(a)

in sub-paragraph (4), for “an EU enforcer” substitute “a Schedule 13 enforcer”;

(b)

in sub-paragraph (4)(a), for “Community infringement” substitute “Schedule 13 infringement”.

5Amendment of the Data Protection Act 2018

In Part 2 of Schedule 2 (Exemptions etc from the GDPR) to the Data Protection Act 2018f1—

(a)

in the table in paragraph 11, omit row 10 (consumer protection enforcer);

(b)

in paragraph 12, omit the definitions of “consumer protection enforcer” and “CPC Regulation”.

6Amendment of the Enterprise Act 2002 (Part 8 Designated Enforcers: Criteria for Designation, Designation of Public Bodies as Designated Enforcers and Transitional Provisions) Order 2003

In the Enterprise Act 2002 (Part 8 Designated Enforcers: Criteria for Designation, Designation of Public Bodies as Designated Enforcers and Transitional Provisions) Order 2003f1, in article 3 (criteria for designation)—

(a)

in paragraph (b), for “Community infringements” substitute “Schedule 13 infringements”;

(b)

in paragraph (f)—

(i)

omit “and Community enforcers”;

(ii)

for “Community infringements” substitute “Schedule 13 infringements”.

7Revocation of orders made under section 212(3) of the Enterprise Act 2002

The following are revoked—

(a)

the Enterprise Act 2002 (Part 8 Community Infringements Specified UK Laws) Order 2003f1;

(b)

the Enterprise Act 2002 (Part 8 Community Infringements Specified UK Laws) (Amendment) Order 2005f2;

(c)

the Enterprise Act 2002 (Part 8 Community Infringements Specified UK Laws) Order 2006f3;

(d)

the Enterprise Act 2002 (Part 8 EU Infringements) Order 2014f4;

(e)

the Enterprise Act 2002 (Part 8 Community Infringements and Specified UK Laws) (Amendment) Order 2015f5.

8Revocation of Regulation (EC) No 2006/2004

Regulation (EC) No 2006/2004 of the European Parliament and of the Council on cooperation between national authorities responsible for the enforcement of consumer protection laws is revoked.

9Post-exit day enforcement of Community infringements: general rule

(1)

Subject to regulation 10, the amendments in regulations 3 and 4 and the revocations in regulation 7 do not apply in relation to any Community infringement or suspected Community infringement to the extent that it occurred (or is suspected to have occurred) before exit day.

(2)

“Community infringement” has the meaning given by section 212 of the 2002 Act before these Regulations come into force.

10Post-exit day enforcement of Community infringements: exceptions to general rule

(1)

A Community enforcer may not, after exit day—

(a)

exercise any function under Part 8 of the 2002 Act, or

(b)

continue any proceedings relating to an application made to a court under that Part prior to exit day, and any such proceedings that have not been determined before exit day are deemed to be withdrawn.

(2)

The deemed withdrawal of proceedings under paragraph (1)(b) does not prevent another enforcer from making an application to court under Part 8 of the 2002 Act in relation to the infringement, or suspected infringement, in question.

(3)

In paragraph (1) a “Community enforcer” has the meaning given by section 213 of the 2002 Act before these Regulations come into force and in paragraph (2) “another enforcer” means an enforcer under that section after these Regulations come into force.

(4)

Regulation 9 does not apply to regulation 3(4)(c).

Signature

Name

Parliamentary Under Secretary of State

Department for Business, Energy and Industrial Strategy

Date

Substituted Schedule 13 to the Enterprise Act 2002

“SCHEDULE 13

Listed enactments

Sections 210 and 243(12)(c)

1.

Sections 9 to 11 of the Supply of Goods (Implied Terms) Act 1973f1.

2.

The Consumer Credit Act 1974f2 and secondary legislation made under that Act excluding requirements relating to consumer hire agreements.

3.

Sections 6(2), 7(1), 7(2), 20(2), 21 and 27(2) of the Unfair Contract Terms Act 1977f3, to the extent that those sections remain in force, or continue to apply to a consumer contract, by virtue of the saving made, in connection with their repeal or disapplication by the Consumer Rights Act 2015f4, by article 6 of the Consumer Rights Act 2015 (Commencement No. 3, Transitional Provisions, Savings and Consequential Amendments) Order 2015f5.

4.

Sections 13 to 15, 15B, 20 and 32 of the Sale of Goods Act 1979f6, to the extent that those sections continue to apply to a contract for a trader to supply goods to a consumer by virtue of the saving made, in connection with their amendment by the Consumer Rights Act 2015f7, by article 6 of the Consumer Rights Act 2015 (Commencement No. 3, Transitional Provisions, Savings and Consequential Amendments) Order 2015.

5.

Sections 48A to 48F of the Sale of Goods Act 1979, to the extent that those sections remain in force by virtue of the saving made, in connection with their repeal by the Consumer Rights Act 2015f8, by article 6 of the Consumer Rights Act 2015 (Commencement No. 3, Transitional Provisions, Savings and Consequential Amendments) Order 2015.

6.

Sections 3 to 5, 11C to 11E and 13 of the Supply of Goods and Services Act 1982f9, and any rule of law in Scotland which provides comparable protection to section 13, to the extent that those sections continue to apply to a contract for a trader to supply goods or, in the case of section 13, a contract for a trader to supply a service, to a consumer by virtue of the saving made, in connection with their amendment by the Consumer Rights Act 2015f10, by article 6 of the Consumer Rights Act 2015 (Commencement No. 3, Transitional Provisions, Savings and Consequential Amendments) Order 2015.

7.

Sections 11M to 11S of the Supply of Goods and Services Act 1982 to the extent that those sections remain in force by virtue of the saving made, in connection with their repeal by the Consumer Rights Act 2015f11, by article 6 of the Consumer Rights Act 2015 (Commencement No. 3, Transitional Provisions, Savings and Consequential Amendments) Order 2015.

8.

The Package Travel, Package Holidays and Package Tours Regulations 1992f12, to the extent that those Regulations remain in force by virtue of the saving made, in connection with their revocation, by regulation 37(2) of the Package Travel and Linked Travel Arrangements Regulations 2018f13.

9.

The Unfair Terms in Consumer Contracts Regulations 1999f14, to the extent that those Regulations remain in force by virtue of the saving made, in connection with their revocation by the Consumer Rights Act 2015f15, by article 6 of the Consumer Rights Act 2015 (Commencement No. 3, Transitional Provisions, Savings and Consequential Amendments) Order 2015.

10.

The Consumer Protection (Distance Selling) Regulations 2000f16, to the extent that those Regulations remain in force for contracts entered into prior to their disapplication by virtue of regulation 2(a) of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013f17.

11.

Regulations 6, 7, 8, 9 and 11 of the Electronic Commerce (EC Directive) Regulations 2002f18.

12.

Regulation 15 of the Sale and Supply of Goods to Consumers Regulations 2002f19, to the extent that regulation 15 remains in force by virtue of the saving made, in connection with its revocation by the Consumer Rights Act 2015f20, by article 6 of the Consumer Rights Act 2015 (Commencement No. 3, Transitional Provisions, Savings and Consequential Amendments) Order 2015.

13.

Regulations 19 to 26, 30 and 32 of the Privacy and Electronic Communications (EC Directive) Regulations 2003f21.

14.

The Price Marking Order 2004f22.

15.

Regulation (EC) No 261/2004 of the European Parliament and of the Council of 11 February 2004 establishing common rules on compensation and assistance to air passengers in the event of denied boarding and of cancellation or long delay of flights.

16.

The Financial Services (Distance Marketing) Regulations 2004f23 and rules corresponding to any provisions of those Regulations made by the Financial Conduct Authority or a designated professional body within the meaning of section 326(2) of the Financial Services and Markets Act 2000f24.

17.

The Price Marking Order (Northern Ireland) 2004f25.

18.

The Civil Aviation (Denied Boarding, Compensation and Assistance) Regulations 2005f26.

19.

The Consumer Protection from Unfair Trading Regulations 2008f27.

20.

The Cancellation of Contracts made in a Consumer’s Home or Place of Work etc. Regulations 2008f28, to the extent that those Regulations remain in force for contracts entered into prior to their disapplication by regulation 2(b) of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013f29.

21.

The Provision of Services Regulations 2009f30.

22.

The Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010f31.

23.

Chapters 1 and 2 of Part 14 of the Human Medicines Regulations 2012f32.

24.

Regulations 4 and 6A to 10 of the Consumer Rights (Payment Surcharges) Regulations 2012f33.

25.

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013f34.

26.

Regulation 19(1) and (2) of the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015f35.

27.

Sections 2, 3, 5, 9 to 15, 19, 23, 24, 28 to 32, 36(3) and (4), 37, 38, 42, 50, 54, 58, 59, 61 to 64, 67 to 70, 72 to 74 of, and Schedules 2 and 3 and Part 3 of Schedule 5 to, the Consumer Rights Act 2015f36.

28.

Article 10(4) of Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions.

29.

The Package Travel and Linked Travel Arrangements Regulations 2018f37.”

Explanatory note

(This note is not part of the Regulations)

These Regulations are made in exercise of the powers conferred by section 8(1) of the European Union (Withdrawal) Act 2018 (c.16) in order to address failures of retained EU law to operate effectively and other deficiencies (in particular under sections 8(2)(b), (c), (d) and (g)) arising from the withdrawal of the United Kingdom from the European Union.

These Regulations make amendments to legislation in the field of enforcement of the laws protecting consumers’ rights.

Part 2 amends primary legislation and, in particular, regulation 3 amends Part 8 (enforcement of certain consumer legislation) of the Enterprise Act 2002 (c.40) (“the 2002 Act”) which provides for enforcement of breaches of consumer legislation harming the collective interests of consumers. Regulation 4 makes similar changes to Schedule 5 (investigatory powers etc.) to the Consumer Rights Act 2015 (c.15) (“the 2015 Act”).

The amendments to the 2002 Act replace the concept of a “Community infringement” with a “Schedule 13 infringement”. A Community infringement consists of a contravention of European Union Directives and Regulations listed in Schedule 13 to the 2002 Act before these Regulations come into force and any law of the United Kingdom specified in an order under section 212(3) (“a section 212 order”) before that time. A Schedule 13 infringement consists of a contravention of the legislation specified in Schedule 13 as substituted by these Regulations, and that legislation includes direct EU legislation and the domestic legislation specified, prior to exit day, in the section 212 orders (save for such legislation or provisions as are no longer relevant).

Those amendments remove the functions of Community enforcers so that they cannot apply to the UK courts for enforcement orders under Part 8 of the 2002 Act. Community enforcers are bodies in other EU Member States which, prior to exit day, are entitled to bring legal proceedings in the UK under Directive 2009/22/EC of the European Parliament and of the Council of 23 April 2009 on injunctions for the protection of consumers’ interest (OJ L 110, 1.5.2009, p. 30).

Those amendments also rename as Schedule 13 enforcers those bodies or persons which, prior to exit day, are CPC enforcers. (CPC enforcers are listed in section 213(5A) of the 2002 Act and are designated under Article 4(1) and 4(2) of Regulation (EC) No 2006/2004 of the European Parliament and of the Council on cooperation between national authorities responsible for the enforcement of consumer protection laws) (OJ L 364, 9.12.2004, p. 1) (“the CPC Regulation”)). After exit day, Schedule 13 enforcers may apply to court under Part 8 of the 2002 Act for enforcement orders in the case of Schedule 13 infringements.

Part 3 amends the Enterprise Act 2002 (Part 8 Designated Enforcers: Criteria for Designation, Designation of Public Bodies as Designated Enforcers and Transitional Provisions) Order 2003 (S.I. 2003/1399). Part 3 also revokes the section 212 orders.

Part 4 revokes the CPC Regulation.

Part 5 sets out transitional provisions. These provisions preserve the ability of enforcers to exercise functions under the 2002 Act and the 2015 Act in relation to pre-exit day Community infringements. By way of exception, Community enforcers may not exercise any functions under Part 8 of the 2002 Act after exit day and may not continue court proceedings under that Part. There are no transitional provisions in relation to the CPC Regulation.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.