Explanatory note

These Regulations transpose Article 7(5) of Directive 2011/7/EU of the European Parliament and of the Council of 16th February 2011 on combating late payment in commercial transactions (OJ L 48, 23.2.2011, p.1).

These Regulations amend the Late Payment of Commercial Debts (Scotland) Regulations 2002 (“the principal Regulations”). Regulation 2(2) substitutes a new regulation 3 in the principal Regulations which clarifies that representative bodies are able to challenge in the Court of Session (on behalf of undertakings of all sizes, not just small and medium enterprises) the use of certain grossly unfair terms or practices in, or in relation to, contracts to which the Late Payment of Commercial Debts (Interest) Act 1998 applies.

Regulation 3 provides that these Regulations do not affect contracts made before the date these Regulations come into force.

No business and regulatory impact assessment has been prepared as no costs to business are foreseen.