The Deregulation (Restrictive Trade Practices Act 1976) (Amendment) (Time Limits) Order 1996

Explanatory Note

(This note is not part of the Order)

This Order is made under the Deregulation and Contracting Out Act 1994 which allows statutory provisions to be amended, without removing any necessary protection, in order to reduce burdens affecting persons carrying on business.

This Order amends the Restrictive Trade Practices Act 1976 which requires that restrictive agreements between two or more persons carrying on business in the United Kingdom in the production or supply of goods or supply of services be furnished to the Director General of Fair Trading (the DGFT). At present the Act requires that particulars of certain categories of agreements be furnished to the DGFT before the restrictions in them take effect or within three months from the date of the agreement whichever first occurs. If particulars are not furnished as required, the restrictions in the agreement are void and it is unlawful to give effect to them (section 35).

This Order removes the requirement to furnish particulars of agreements before the restrictions take effect. The time limit for furnishing particulars of agreements in the categories concerned becomes three months from the date of the agreement. The Order makes it unlawful for the parties to operate the restrictions in the categories of agreement concerned in the period before particulars are furnished. The new provision applies in respect of the period before the time for furnishing has expired. If the time for furnishing expires without the agreement having been furnished, the existing provision in section 35 will apply as at present. The Order also makes a consequential amendment to the Act.