Consumer Rights Act 2015

[F1 Non-compliance with notice under paragraph 14: power of CMA to give final enforcement notice U.K.

Textual Amendments

F1 Sch. 5 paras. 16A-16J inserted (24.5.2024 for specified purposes, 6.4.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 17 para. 2(3) (with Sch. 19); S.I. 2025/272, reg. 2(1)(8)

16C (1) This paragraph applies where— U.K.

(a) the CMA has given to the respondent a provisional enforcement notice under paragraph 16B in respect of a notice given to the respondent under paragraph 14,

(b) the time for the respondent to make representations to the CMA in accordance with the provisional enforcement notice has expired, and

(c) after considering such representations (if any), the CMA is satisfied that the respondent has failed to comply with the notice given under paragraph 14.

(2) The CMA may by notice (a “final enforcement notice”) impose on the respondent a requirement to do either or both of the following—

(a) a requirement to pay a monetary penalty;

(b) a requirement to comply with such directions as the CMA considers appropriate for the purpose of securing the respondent’s compliance with the notice under paragraph 14.

(3) A requirement under sub-paragraph (2)(a) to pay a monetary penalty may be imposed only if the CMA is satisfied that the respondent’s failure in question is without reasonable excuse.

(4) The amount of a monetary penalty must be—

(a) a fixed amount,

(b) an amount calculated by reference to a daily rate, or

(c) a combination of a fixed amount and an amount calculated by reference to a daily rate.

(5) The penalty must not exceed—

(a) in the case of a fixed amount, £30,000 or, if higher, 1% of the total value of the turnover (if any) of the respondent;

(b) in the case of an amount calculated by reference to a daily rate, £15,000 per day or, if higher, 5% of the total value of the daily turnover (if any) of the respondent;

(c) in the case of a fixed amount and an amount calculated by reference to a daily rate, such fixed amount and such amount per day.

(6) In imposing a penalty by reference to a daily rate—

(a) no account is to be taken of any days before the date on which the provisional enforcement notice mentioned in sub-paragraph (1)(a) was given to the respondent, and

(b) unless the CMA determines an earlier date, the amount payable ceases to accumulate on the day on which the requirements of the notice under paragraph 14 are complied with.

(7) A final enforcement notice that imposes a penalty on the respondent must state—

(a) the amount of the penalty (including whether it is a fixed amount, an amount calculated by reference to a daily rate or both a fixed amount and an amount calculated by reference to a daily rate);

(b) the grounds on which the penalty is imposed together with any other factors that the CMA considers justify the giving of the penalty or its amount;

(c) in the case of an amount calculated by reference to a daily rate, the day on which the amount first starts to accumulate and the day or days on which it might cease to accumulate;

(d) how the penalty is to be paid to the CMA;

(e) the date or dates, no earlier than the end of 28 days beginning with the date of service of the notice on the respondent, by which the penalty or (as the case may be) different portions of it are required to be paid;

(f) that the penalty or (as the case may be) different portions of it may be paid earlier than the date or dates by which it or they are required to be paid;

(g) that the respondent has the right to apply under sub-paragraph (8), or to appeal under paragraph 16D, and the main details of those rights.

(8) The respondent may, within 14 days of the date of service of the notice, apply to the CMA for it to specify a different date or dates by which the penalty, or different portions of it, are to be paid.

(9) In deciding whether, and if so how, to proceed under this paragraph the CMA must have regard to the statement of policy most recently published under paragraph 16F at the time of the act or omission giving rise to the penalty.

(10) The CMA may publish a notice given under this paragraph in such manner as it considers appropriate.

(11) Sections 191 to 196 of the Digital Markets, Competition and Consumers Act 2024 apply to a direction given in a notice under this paragraph as if the direction were an enforcement direction for the purposes of those sections.]