SCHEDULE 2Enforcement

PART 1Investigatory powers

Compensation for seizure and detention7

1

Where the enforcement authority exercises any power under paragraph 5(1)(d) to seize and detain any relevant products or records or other information, the enforcement authority is liable to pay compensation to any person having an interest in the item seized and detained in respect of any loss or damage caused by the exercise of the power if—

a

there has been no breach of any provision of these Regulations; and

b

the exercise of the power is not attributable to any neglect or default by that person.

2

Any disputed question as to the right to, or the amount of, any compensation payable under this paragraph must be determined by arbitration—

a

in England and Wales, in accordance with the Arbitration Act 19969;

b

in Scotland, in accordance with the Arbitration (Scotland) Act 201010.