Regulation 7 Trigger eventsI1
England and Wales
For the purposes of Part 4 of SBEEA 2015 (and so of these Regulations) an event is a “trigger event”, in relation to a tied pub tenant, only if (in addition to meeting the conditions in section 43(9)(a) to (c) of SBEEA 2015)—
conditions A and B are met; and
either—
the event does not affect pubs other than the tied pub; or
conditions C and D are met.
Condition A is that the effect of the event is to decrease the level of trade that is reasonably expected to be achieved at the tied pub in each month over a continuous period of 12 months.
Condition B is that the event is not—
connected to the personal circumstances of the tied pub tenant;
a significant increase in the price at which a product or service which is subject to a product or service tie is supplied to the tied pub tenant;
an extrinsic increase in the price at which a product or service which is subject to a product or service tie is supplied to the tied pub tenant;
an event of a kind described in regulation 26 or regulation 27; or
an event which the tied pub tenant could reasonably have prevented, or the effects of which it could reasonably have substantially mitigated.
Condition C is that the event—
affects other pubs in the local area; but
is unlikely to affect all pubs in England or Wales.
Condition D is that the event—
is directly related to a change in the tie imposed by the pub-owning businessf1 on the tied pub; or
has an effect which is directly related to changes in the local area such as—
changes to the local infrastructure;
changes to local employment;
long-term changes to the local economic environment;
changes to local environmental factors.
An “extrinsic increase” in relation to a tied product or service means an increase in the price of the product or service due to circumstances beyond the control of the pub-owning business such as—
an increase in the price at which the pub-owning business purchases the product or service;
an increase in any tax or duty payable by the pub-owning business which arises from the pub-owning business’s purchase of the product or service; or
an increase in any other tax or regulatory cost payable by the pub-owning business which affects the costs of the pub-owning business.
Annotations
Commencement
- I1
Reg. 7 in force at 21.7.2016, see reg. 1(b)
Footnotes
- f1
-
Section 69 of SBEEA 2015 defines “pub-owning business”.