Legislation – Digital Markets, Competition and Consumers Act 2024

There are currently no known outstanding effects for the Digital Markets, Competition and Consumers Act 2024, Cross Heading: False or misleading information.

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Part 3Enforcement of consumer protection law

Chapter 4Direct enforcement powers of CMA

False or misleading information

197Provisional false information enforcement notice

(1)

This section applies if—

(a)

the CMA has reasonable grounds to believe that a person (“the respondent”) has, without reasonable excuse, provided information to the CMA that is materially false or misleading, and

(b)

the information was provided in connection with the carrying out by the CMA of a direct enforcement function.

(2)

The CMA may give to the respondent a notice under this section (a “provisional false information enforcement notice”).

(3)

A provisional false information enforcement notice must—

(a)

set out the grounds on which it is given;

(b)

state that the CMA is considering imposing a monetary penalty;

(c)

state the proposed amount of the penalty;

(d)

state any further factors (in addition to those provided under paragraph (a)) which the CMA considers justify the imposition of the proposed penalty and its amount;

(e)

invite the respondent to make representations to the CMA about the giving of the notice;

(f)

specify the means by which, and the time by which, such representations must be made.

(4)

The means specified under subsection (3)(f) for making representations must include arrangements for them to be made orally if the respondent chooses to make representations in that way.

(5)

In this Part “direct enforcement function” means—

(a)

a function of the CMA under this Chapter, or

(b)

a function of the CMA under paragraph 16B or 16C of Schedule 5 to CRA 2015.

198Final false information enforcement notice

(1)

This section applies where—

(a)

the CMA has given to the respondent a provisional false information enforcement notice under section 197 in connection with the provision of information,

(b)

the time for the respondent to make representations to the CMA in accordance with the notice has expired, and

(c)

after considering such representations (if any), the CMA is satisfied that—

(i)

the information mentioned in paragraph (a) is materially false or misleading, and

(ii)

the respondent provided the false or misleading information without reasonable excuse.

(2)

The CMA may give to the respondent a notice under this section (“a final false information enforcement notice”).

(3)

A final false information enforcement notice is a notice that imposes on the respondent a requirement to pay a monetary penalty.

(4)

The amount of the penalty must be a fixed amount not exceeding £30,000 or, if higher, 1% of the total value of the turnover (if any) of the respondent.

(5)

A final false information enforcement notice must—

(a)

set out the grounds on which it is given;

(b)

state any further factors (in addition to those provided under paragraph (a)) which the CMA considers justify the giving of the notice;

(c)

specify the monetary penalty information (see section 203).

(6)

The CMA may publish a final false information enforcement notice in such manner, and to such extent, as the CMA considers appropriate.