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Consumer Rights Act 2015

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  • specified provision(s) amendment to earlier commencing SI 2015/1630, art. 4, 6 by S.I. 2016/484 art. 2

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8After section 219 insert—

219ADefinition of enhanced consumer measures

(1)In this Part, enhanced consumer measures are measures (not excluded by subsection (5)) falling within—

(a)the redress category described in subsection (2),

(b)the compliance category described in subsection (3), or

(c)the choice category described in subsection (4).

(2)The measures in the redress category are—

(a)measures offering compensation or other redress to consumers who have suffered loss as a result of the conduct which has given rise to the enforcement order or undertaking,

(b)where the conduct referred to in paragraph (a) relates to a contract, measures offering such consumers the option to terminate (but not vary) that contract,

(c)where such consumers cannot be identified, or cannot be identified without disproportionate cost to the subject of the enforcement order or undertaking, measures intended to be in the collective interests of consumers.

(3)The measures in the compliance category are measures intended to prevent or reduce the risk of the occurrence or repetition of the conduct to which the enforcement order or undertaking relates (including measures with that purpose which may have the effect of improving compliance with consumer law more generally).

(4)The measures in the choice category are measures intended to enable consumers to choose more effectively between persons supplying or seeking to supply goods or services.

(5)The following are not enhanced consumer measures—

(a)a publication requirement included in an enforcement order as described in section 217(8),

(b)a publication requirement included in an undertaking accepted by the court as described in section 217(10), or

(c)a publication requirement included in an undertaking accepted by a CPC enforcer as described in section 219(5A)(a).

219BInclusion of enhanced consumer measures etc.

(1)An enforcement order or undertaking may include only such enhanced consumer measures as the court or enforcer (as the case may be) considers to be just and reasonable.

(2)For the purposes of subsection (1) the court or enforcer must in particular consider whether any proposed enhanced consumer measures are proportionate, taking into account—

(a)the likely benefit of the measures to consumers,

(b)the costs likely to be incurred by the subject of the enforcement order or undertaking, and

(c)the likely cost to consumers of obtaining the benefit of the measures.

(3)The costs referred to in subsection (2)(b) are—

(a)the cost of the measures, and

(b)the reasonable administrative costs associated with taking the measures.

(4)An enforcement order or undertaking may include enhanced consumer measures in the redress category—

(a)only in a loss case, and

(b)only if the court or enforcer (as the case may be) is satisfied that the cost of such measures to the subject of the enforcement order or undertaking is unlikely to be more than the sum of the losses suffered by consumers as a result of the conduct which has given rise to the enforcement order or undertaking.

(5)The cost referred to in subsection (4)(b) does not include the administrative costs associated with taking the measures.

(6)Subsection (7) applies if an enforcement order or undertaking includes enhanced consumer measures offering compensation and a settlement agreement is entered into in connection with the payment of compensation.

(7)A waiver of a person's rights in the settlement agreement is not valid if it is a waiver of the right to bring civil proceedings in respect of conduct other than the conduct which has given rise to the enforcement order or undertaking.

(8)The following definitions apply for the purposes of subsection (4)(a).

(9)In the case of an enforcement order or undertaking under section 217, “a loss case” means a case in which—

(a)subsection (1) of that section applies (a finding that a person has engaged in conduct which constitutes an infringement), and

(b)consumers have suffered loss as a result of that conduct.

(10)In the case of an undertaking under section 219, “a loss case” means a case in which—

(a)subsection (3)(a) or (b) of that section applies (a belief that a person has engaged or is engaging in conduct which constitutes an infringement), and

(b)consumers have suffered loss as a result of that conduct.

219CAvailability of enhanced consumer measures to private enforcers

(1)An enforcement order made on the application of a designated enforcer which is not a public body may require a person to take enhanced consumer measures only if the following conditions are satisfied.

(2)An undertaking given under section 217(9) following an application for an enforcement order made by a designated enforcer which is not a public body, or an undertaking given to such an enforcer under section 219, may include a further undertaking by a person to take enhanced consumer measures only if the following conditions are satisfied.

(3)The first condition is that the enforcer is specified for the purposes of this section by order made by the Secretary of State.

(4)The second condition is that the enhanced consumer measures do not directly benefit the enforcer or an associated undertaking.

(5)Enhanced consumer measures which directly benefit an enforcer or an associated undertaking include, in particular, measures which—

(a)require a person to pay money to the enforcer or associated undertaking,

(b)require a person to participate in a scheme which is designed to recommend persons supplying or seeking to supply goods or services to consumers and which is administered by the the enforcer or associated undertaking, or

(c)would give the enforcer or associated undertaking a commercial advantage over any of its competitors.

(6)The Secretary of State may make an order under subsection (3) specifying an enforcer only if the Secretary of State is satisfied that to do so is likely to—

(a)improve the availability to consumers of redress for infringements to which the enforcer's designation relates,

(b)improve the availability to consumers of information which enables them to choose more effectively between persons supplying or seeking to supply goods or services, or

(c)improve compliance with consumer law.

(7)The Secretary of State may make an order under subsection (3) specifying an enforcer only if the functions of the enforcer under this Part have been specified under section 24 of the Legislative and Regulatory Reform Act 2006 (functions to which principles under section 21 and code of practice under section 22 apply), to the extent that they are capable of being so specified.

(8)The power to make an order under subsection (3)—

(a)is exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament;

(b)includes power to make incidental, supplementary, consequential, transitional, transitory or saving provision.

(9)Subsection (10) applies if—

(a)an enforcer exercises a function in relation to a person by virtue of subsection (1) or (2),

(b)that function is a relevant function for the purposes of Part 2 (co-ordination of regulatory enforcement) of the Regulatory Enforcement and Sanctions Act 2008, and

(c)a primary authority (within the meaning of that Part) has given advice or guidance under section 27(1) of that Act—

(i)to that person in relation to that function, or

(ii)to other local authorities (within the meaning of that Part) with that function as to how they should exercise it in relation to that person.

(10)The enforcer must, in exercising the function in relation to that person, act consistently with that advice or guidance.

(11)In this section “associated undertaking”, in relation to a designated enforcer, means—

(a)a parent undertaking or subsidiary undertaking of the enforcer, or

(b)a subsidiary undertaking of a parent undertaking of the enforcer,

and for this purpose “parent undertaking” and “subsidiary undertaking” have the meanings given by section 1162 of the Companies Act 2006.

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Commencement Information

I1Sch. 7 para. 8 in force at 1.10.2015 by S.I. 2015/1630, art. 3(i)

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