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Enterprise Act 2002

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Enterprise Act 2002. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

  2. Overview of the Act

  3. Summary

  4. Commentary on Sections

    1. Part 1: the Office of Fair Trading

      1. Establishment of Office of Fair Trading

        1. Sections 1 and 2 & Schedule 1: The Office of Fair Trading & The Director General of Fair Trading

        2. Section 3: Annual plan

        3. Section 4: Annual and other reports

        4. Schedule 24: Transitional and transitory provisions and savings

      2. General functions of

        1. Section 5: Acquisition of information

        2. Section 6: Provision of information to the public

        3. Section 7: Provision of information and advice to Ministers

        4. Section 8: Promoting good consumer practice

      3. Miscellaneous

        1. Section 9: Repeal of certain powers of direction

        2. Section 10: Part 2 of the 1973 Act

        3. Section 11: Super-complaints to the

    2. Part 2: the Competition Appeal Tribunal

      1. The Competition Appeal Tribunal

        1. Section 12: The Competition Appeal Tribunal

        2. Schedule 2: The Competition Appeal Tribunal

        3. Section 13: The Competition Service

        4. Schedule 3: The Competition Service

        5. Section 14: Constitution of Tribunal for particular proceedings and its decisions

        6. Section 15: Tribunal rules

        7. Schedule 4: Tribunal: procedure

        8. Section 16: Transfers of certain proceedings to Tribunal

      2. Proceedings under Part 1 of 1998 Act

        1. Section 17: Third party appeals

        2. Section 18: Monetary Claims

        3. Section 19: Claims on behalf of consumers

      3. Other amendments of the 1998 Act

        1. Section 20: Findings of infringements

        2. Section 21 & Schedule 5: Proceedings under Part 1 of the 1998 Act

    3. Part 3: Mergers

      1. Summary and Background

        1. Chapter 1: Duty to make references

          1. Duty to make references: completed mergers

            1. Section 22: Duty to make references in relation to completed mergers

            2. Section 23: Relevant merger situations

            3. Section 24: Time-limits and prior notice

            4. Section 25: Extension of time-limits

            5. Section 26: Enterprises ceasing to be distinct enterprises

            6. Sections 27 and 29: Time when enterprises cease to be distinct & Obtaining control by stages

            7. Section 28: Turnover test

            8. Section 30: Relevant customer benefits

            9. Section 31: Information powers in relation to completed mergers

            10. Section 32: Supplementary provision for purposes of sections 25 and 31

          2. Duty to make references: anticipated mergers

            1. Section 33: Duty to make references in relation to anticipated mergers

            2. Section 34: Supplementary provision in relation to anticipated mergers

          3. Determination of references

            1. Sections 35–41

            2. Section 35: Questions to be decided in relation to completed mergers

            3. Section 36: Questions to be decided in relation to anticipated mergers

            4. Section 37: Cancellation and variation of references under section 22 or 33

            5. Section 38: Investigations and reports on references under section 22 or 33

            6. Section 39: Time-limits for investigations and reports

            7. Section 40: Section 39: supplementary

            8. Section 41: Duty to remedy effects of completed or anticipated mergers

        2. Chapter 2: Public interest cases

          1. Power to make references

            1. Section 42: Intervention by Secretary of State in certain public interest cases

            2. Section 43: Intervention notices under section 42

            3. Section 44: Investigation and report by

            4. Section 45: Power of Secretary of State to refer matter to Commission

            5. Section 46: References under section 45: supplementary

          2. Reports on references

            1. Section 47: Questions to be decided on references under section 45

            2. Section 48: Cases where references or certain questions need not be decided

            3. Section 49: Variation of references under section 45

            4. Section 50: Investigations and reports on references under section 45

            5. Section 51: Time-limits for investigations and reports by Commission

            6. Section 52: Section 51: supplementary

            7. Section 53: Restrictions on action where public interest considerations not finalised

          3. Decisions of the Secretary of State

            1. Section 54: Decision of Secretary of State in public interest cases

            2. Section 55: Enforcement action by Secretary of State

          4. Other

            1. Section 56: Competition cases where intervention on public interest grounds ceases

            2. Section 57: Duties of and Commission to inform Secretary of State

            3. Section 58: Specified considerations

        3. Chapter 3: Other special cases

          1. Special public interest cases

            1. Section 59: Intervention by Secretary of State in special public interest cases

            2. Section 60: Special intervention notices under section 59

            3. Section 61: Initial investigation and report by

            4. Section 62: Power of Secretary of State to refer the matter

            5. Sections 63 and 64: Questions to be decided on references under section 62 & Cancellation or variation of references under section 62

            6. Section 65: Investigations and reports on references under section 62

            7. Section 66: Decision and enforcement action by Secretary of State

          2. European Mergers

            1. Section 67: Intervention to protect legitimate interests

            2. Section 68: Scheme for protecting legitimate interests

          3. Other

            1. Section 69: Newspaper mergers

            2. Section 70 & Schedules 6 and 9: Water mergers

        4. Chapter 4: Enforcement

          1. Powers exercisable before references under section 22 or 33

            1. Section 71: Initial undertakings: completed mergers

            2. Section 72: Initial enforcement orders: completed mergers

            3. Section 73: Undertakings in lieu of references under section 22 or 33

            4. Section 74: Effect of undertakings under section 73

            5. Section 75: Order-making power where undertakings under section 73 not fulfilled

            6. Section 76: Supplementary interim order-making power

          2. Interim restrictions and powers

            1. Section 77: Restrictions on certain dealings: completed mergers

            2. Section 78: Restrictions on certain share dealings: anticipated mergers

            3. Section 79: Sections 77 and 78: further interpretation provisions

            4. Section 80: Interim undertakings

            5. Section 81: Interim orders

          3. Final powers

            1. Section 82: Final undertakings

            2. Section 83: Order-making power where final undertakings not fulfilled

            3. Section 84: Final orders

            4. Schedule 8: Provision that may be contained in certain enforcement orders

          4. Public interest and special public interest cases

            1. Section 85: Enforcement regime for public interest and special public interest cases

            2. Schedule 7: Enforcement regime for public interest and special public interest cases

          5. Undertakings and orders: general provisions

            1. Section 86: Enforcement orders: general provisions

            2. Section 87: Delegated power of directions

            3. Section 88: Contents of certain enforcement orders

            4. Section 89: Subject-matter of undertakings

            5. Section 90: Procedural requirements for certain undertakings and orders

            6. Schedule 10: Procedural requirements for certain enforcement undertakings and orders

            7. Section 91: Register of undertakings and orders

          6. Enforcement functions of

            1. Section 92: Duty of to monitor undertakings and orders

            2. Section 93: Further role of in relation to undertakings and orders

          7. Other

            1. Section 94: Rights to enforce undertakings and orders

            2. Section 95: Rights to enforce statutory restrictions

        5. Chapter 5: Supplementary

          1. Merger notices

            1. Section 96: Merger notices

            2. Sections 97 and 98: Period for considering merger notices & Section 97: supplementary

            3. Section 99: Certain functions of and Secretary of State in relation to merger notices

            4. Section 100: Exceptions to protection given by merger notices

            5. Sections 101 and 102: Merger notices: regulations & Power to modify sections 97 to 101

          2. General duties in relation to references

            1. Section 103: Duty of expedition in relation to references

            2. Section 104: Certain duties of relevant authorities to consult

          3. Information and publicity requirements

            1. Section 105: General information duties of and Commission

            2. Section 106: Advice and information about references under section 22 and 33

            3. Section 107: Further publicity requirements

            4. Section 108: Defamation

          4. Investigation powers

            1. Sections 109–117: Investigation powers

          5. Reports

            1. Section 118: Excisions from reports

            2. Section 119: Minority reports of Commission

          6. Miscellaneous

            1. Section 120: Review of decisions under Part 3

            2. Section 121: Fees

            3. Section 122: Primacy of Community law

            4. Section 123: Power to alter the share of supply test

            5. Section 125: Offences by bodies corporate

            6. Section 126: Service of documents

            7. Section 127: Associated persons

            8. Section 128: Supply of services and market for services

    4. Part 4: Market Investigations

      1. Introduction

        1. Chapter 1: Market investigation references

          1. Making of references

            1. Section 131: Power of to make references

            2. Section 132: Ministerial power to make references

            3. Section 133: Contents of references

          2. Determination of references

            1. Section 134: Questions to be decided on market investigation references

            2. Section 135: Variation of market investigation references

            3. Section 136: Investigations and reports on market investigation references

            4. Section 137: Time-limits for market investigations and reports

            5. Section 138: Duty to remedy adverse effects

        2. Chapter 2: Public interest cases

          1. Intervention notices

            1. Section 139: Public interest intervention by Secretary of State

          2. Intervention notices under section 139(1)

            1. Section 140: Intervention notices under section 139(1)

            2. Section 141: Questions to be decided by Commission

            3. Section 142: Investigations and reports by Commission

            4. Section 143: Publication of reports of Commission

            5. Section 144: Time-limits for investigations and reports: Part 4

            6. Section 145: Restrictions where public interest considerations not finalised: Part 4

            7. Section 146: Decision of Secretary of State

            8. Section 147: Remedial action by Secretary of State

            9. Section 148: Reversion of the matter to the Commission

          3. Intervention notices under section 139(2)

            1. Section 149: Intervention notices under section 139(2)

            2. Section 150: Power of veto of Secretary of State

          4. Other

            1. Section 151: Further interaction of intervention notices with general procedure

            2. Section 152: Certain duties of and Commission

            3. Section 153: Specified considerations: Part 4

        3. Chapter 3: Enforcement

          1. Undertakings and orders

            1. Section 154: Undertakings in lieu of market investigation references

            2. Section 155: Undertakings in lieu: procedural requirements

            3. Section 156: Effect of undertakings under section 154

            4. Section 157: Interim undertakings: Part 4

            5. Section 158: Interim orders: Part 4

            6. Section 159: Final undertakings: Part 4

            7. Section 160: Order-making power where final undertakings not fulfilled: Part 4

            8. Section 161: Final orders: Part 4

          2. Enforcement functions of

            1. Section 162: Duty of to monitor undertakings and orders: Part 4

            2. Section 163: Further role of in relation to undertakings and orders: Part 4

          3. Supplementary

            1. Section 164: Enforcement undertakings and orders under this Part: general provisions

            2. Section 165: Procedural requirements for certain undertakings and orders: Part 4

            3. Section 166: Register of undertakings and orders: Part 4

            4. Section 167: Rights to enforce undertakings and orders under this Part

        4. Chapter 4: Supplementary

          1. Regulated markets

            1. Section 168: Regulated markets

            2. Schedule 9: Certain amendments of sectoral enactments

          2. Consultation, information and publicity

            1. Section 169: Certain duties of relevant authorities to consult: Part 4

            2. Section 170: General information duties

            3. Section 171: Advice and information: Part 4

            4. Section 172: Further publicity requirements: Part 4

            5. Section 173: Defamation: Part 4

          3. Investigation powers

            1. Section 174: Investigation powers of

            2. Section 175: Enforcement of powers under section 174: offences

            3. Section 176: Investigation powers of the Commission

          4. Reports

            1. Section 177: Excisions from reports: Part 4

            2. Section 178: Minority reports of Commission: Part 4

          5. Other

            1. Section 179: Review of decisions under Part 4

            2. Section 180: Offences

            3. Section 182: Service of documents: Part 4

    5. Part 5: the Competition Commission

      1. Section 185: The Commission

      2. Section 186: Annual report of Commission

      3. Schedule 11: The Competition Commission

      4. Section 187 & Schedule 12: Commission rules of procedure

    6. Part 6: Cartel Offence

      1. Cartel Offence

        1. Section 188: Cartel offence

        2. Section 189: Cartel offence: supplementary

        3. Section 190: Cartel offence: penalty and prosecution

        4. Section 191: Extradition

      2. Criminal investigations by

        1. Section 192: Investigation of offences under section 188

        2. Section 193: Powers when conducting an investigation

        3. Section 194: Power to enter premises under a warrant

        4. Section 195: Exercise of powers by authorised person

        5. Section 196: Privileged information

        6. Section 197: Restriction on use of statements in court

        7. Section 198: Use of statements obtained under Competition Act 1998

        8. Section 199 & Schedule 26: Surveillance powers & Repeals and revocations

        9. Section 200: Authorisation of action in respect of property

        10. Section 201: Offences

    7. Part 7: Miscellaneous Competition Provisions

      1. Powers of entry under 1998 Act

        1. Section 203: Powers of entry

      2. Directors disqualification

        1. Section 204: Disqualification

      3. Miscellaneous

        1. Section 205: Super-complaints to regulators other than

        2. Section 206: Power to modify Schedule 8

        3. Section 207: Repeal of Schedule 4 to the 1998 Act

        4. Section 208: Repeal of Part 6 of Fair Trading Act 1973

        5. Section 209: Reform of Community competition law

    8. Part 8: Enforcement of Certain Consumer Legislation

      1. Introduction

        1. Section 210: Consumers

        2. Sections 211 and 212: Domestic infringements & Community infringements

        3. Section 212: Community Infringements

        4. Section 211: Domestic Infringements

        5. Section 213: Enforcers

      2. Enforcement procedure

        1. Section 214: Consultation

        2. Section 215: Applications

        3. Section 216: Applications: directions by

        4. Section 217: Enforcement orders

        5. Section 218: Interim enforcement order

        6. Section 219: Undertakings

        7. Section 220: Further proceedings

        8. Section 221: Community infringements: proceedings

        9. Section 222: Bodies corporate: accessories

        10. Section 223: Bodies corporate: orders

      3. Information

        1. Sections 224 and 225: & Other enforcers

        2. Sections 226 and 227: Notices: procedure and enforcement

      4. Miscellaneous

        1. Section 228: Evidence

        2. Section 229: Advice and information

        3. Section 230: Notice to of intended prosecution

        4. Section 231: Notice of convictions and judgments to

      5. Interpretation

        1. Section 232: Goods and services

        2. Section 233: Person Supplying Goods

        3. Section 234: Supply of services

      6. Crown

        1. Section 236: Crown

    9. Part 9: Information

      1. Introduction

      2. Restrictions on disclosure

        1. Section 237: General restriction

        2. Section 238: Information

      3. Permitted disclosure

        1. Section 239: Consent

        2. Section 240: Community obligations

        3. Section 241: Statutory functions

        4. Section 242: Criminal proceedings

        5. Section 243: Overseas disclosures

        6. Section 244: Specified information: considerations relevant to disclosure

      4. Offences

        1. Section 245: Offences

        2. Schedule 14: Specified functions

        3. Schedule 15: Enactments conferring functions

    10. Part 10: Insolvency

      1. Companies

        1. Section 248 & Schedule 16: Replacement of Part II of Insolvency Act 1986

      2. General effect of Section 248 and Schedule 16: Nature of administration

        1. The purpose of administration

      3. Appointment of administrator

      4. General Restrictions

      5. Appointment by court

      6. Appointment by the holder of a floating charge

      7. Appointment by company or directors

      8. Administration application – special cases

      9. Effect of administration

        1. Process of Administration

        2. Administrator’s proposals and meeting of creditors

      10. Functions of the administrator

      11. Challenge to the administrator’s conduct of the company

      12. Ending administration

      13. Dissolution

      14. Replacing administrator

      15. General provisions

        1. Section 249: Special administration regimes

        2. Section 250 & Schedule 18: Prohibition of appointment of administrative receiver & Schedule 2A to Insolvency Act 1986

        3. Sections 251 and 252: Abolition of Crown Preference & Unsecured creditors

        4. Section 251: Abolition of Crown Preference

        5. Section 252: Unsecured creditors

        6. Sanction of actions in relation to antecedent recoveries

          1. Sections 253 and 262: Liquidator’s powers & Powers of trustee in bankruptcy

          2. Section 254: Application of insolvency law to foreign company

          3. Section 255: Application of law about company arrangement or administration to non-company

      16. Individuals

        1. Sections 256 and 269 & Schedules 19 and 23: Duration of bankruptcy & Minor and consequential amendments

        2. Sections 257 and 263 & Schedules 20 and 21: Post-discharge restrictions & Repeal of certain bankruptcy offences

        3. Section 258: Investigation by official receiver

        4. Sections 259 and 260: Income payments order & Income payments agreement

        5. Section 261: Bankrupt's Home

        6. Section 264 & Schedule 22: Individual voluntary arrangement

        7. Sections 265, 266, 267 and 268: Disqualification from office: Justice of the Peace, Parliament, Local government & General

        8. Section 266: Disqualification from office: Parliament

          1. England and Wales

          2. The Devolved Assemblies

          3. MPs, Peers and Members of the Devolved Assemblies made bankrupt in Northern Ireland or sequestrated in Scotland

          4. Two regimes

          5. The order-making power

        9. Section 269 & Schedule 23: Minor and consequential amendments

      17. Money

        1. Section 270: Fees

        2. Sections 271 and 272: Insolvency Services Account: interest & Insolvency Services Accounts

    11. Part 11: Supplementary

      1. Section 274: Provision of financial assistance for consumer purposes

      2. Sections 275, 276, 277, 278, 279, 280 and 281: Financial provision, Transitional or transitory provision and savings, Power to make consequential amendments , Minor and consequential amendments and repeals, Commencement, Extent & Short title

  5. Commencement Dates

  6. Hansard References

  • Explanatory Notes Table of contents

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Explanatory Notes

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