Legislation – Digital Markets, Competition and Consumers Act 2024

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Part 3Enforcement of consumer protection law

Chapter 3Consumer protection orders and undertakings

Miscellaneous

176Interconnected bodies corporate

(1)

This section applies if—

(a)

a court makes a consumer protection order against a body corporate (“the respondent”), and

(b)

the interconnection condition applies in relation to the respondent.

(2)

The interconnection condition applies in relation to the respondent if—

(a)

at the time the order is made the respondent is a member of a group of interconnected bodies corporate,

(b)

at any time when the order is in force the respondent becomes a member of a group of interconnected bodies corporate, or

(c)

at any time when the order is in force a group of interconnected bodies corporate of which the respondent is a member is increased by the addition of one or more further members.

(3)

The order may include provision for the requirements (or any particular requirements) imposed by the order to be binding upon all other members of the group (in addition to the respondent) as if each of them were the respondent.

(4)

Provision may be included in an order under subsection (3) only if the court considers it just, reasonable and proportionate to include that provision.

(5)

A group of interconnected bodies corporate is a group consisting of two or more bodies corporate all of whom are interconnected with each other.

(6)

Any two bodies corporate are interconnected—

(a)

if one of them is a subsidiary of the other, or

(b)

if both of them are subsidiaries of the same body corporate.

(7)

Where an order includes provision under subsection (3), a copy of the order must be given to any other member of the respondent’s group in relation to which the requirements imposed by the order are to be binding.

177Enhanced consumer measures: private designated enforcers

(1)

This section applies where—

(a)

an enforcement order is made on the application of a private designated enforcer,

(b)

an undertaking is given under section 156 on an application for an enforcement order made by a private designated enforcer, or

(c)

an undertaking is given under section 163 to a private designated enforcer.

(2)

The enforcement order or undertaking may include a requirement for the taking of any enhanced consumer measures only if both of the following conditions are met.

(3)

The first condition is that the private designated enforcer is specified for the purposes of this section in regulations made by the Secretary of State.

(4)

The second condition is that the enhanced consumer measures do not directly benefit the private designated enforcer or an associated undertaking.

(5)

Enhanced consumer measures directly benefiting an enforcer or an associated undertaking include (for example) measures which—

(a)

require a person to pay money to the enforcer or an associated undertaking;

(b)

require a person to participate in a scheme, administered by the enforcer or associated undertaking, that is designed to recommend persons supplying goods, services or digital content to consumers;

(c)

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

(6)

An enforcer may be specified in regulations under subsection (3) only if—

(a)

the functions of the enforcer under this Chapter 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), so far as capable of being so specified, and

(b)

the Secretary of State is satisfied that to do so is likely to—

(i)

improve the availability to consumers of redress for relevant infringements,

(ii)

improve the availability to consumers of information which enables them to choose more effectively between persons supplying goods, services or digital content, or

(iii)

improve compliance with consumer law.

(7)

Subsection (8) applies if—

(a)

an enforcer exercises a function in relation to a person by virtue of this section,

(b)

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

(c)

a primary authority (within the meaning of that Part) has given advice or guidance under section 24A(1) or (2) of that Act—

(i)

to that person in relation to the 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.

(8)

The enforcer must have regard to the advice or guidance in exercising the function in relation to that person.

(9)

Regulations under this section are subject to the negative procedure.

(10)

In this section “associated undertaking”, in relation to a private 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.

178Substantiation of claims

(1)

This section applies where an application for a consumer protection order is made to a court in respect of a relevant infringement involving a contravention of Chapter 1 of Part 4 (protection from unfair trading).

(2)

The court may, for the purpose of considering the application, require a respondent to provide evidence as to the accuracy of any factual claim made as part of a commercial practice of the respondent.

(3)

The court may find that a factual claim of a respondent is inaccurate if—

(a)

the respondent fails to provide evidence of the accuracy of the claim in response to a requirement imposed under subsection (2), or

(b)

the court considers that any such evidence that is provided is inadequate.

(4)

In this section “respondent”, in relation to an application for a consumer protection order, means—

(a)

where the application is for an enforcement order or an interim enforcement order, the person against whom the order is sought;

(b)

where the application is for an online interface order or an interim online interface order, the person against whom the order is sought or another person who is a party to the proceedings.

179Crown application

(1)

Subject to subsection (2), this Chapter binds the Crown.

(2)

The Crown is not liable for any monetary penalty imposed by virtue of this Chapter.