Legislation – Digital Markets, Competition and Consumers Act 2024
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Part 3Enforcement of consumer protection law
Chapter 3Consumer protection orders and undertakings
Undertakings and further proceedings
163Acceptance of undertakings by enforcers
(1)
This section applies where an enforcer could make an application under section 153 for an enforcement order, or an interim enforcement order, against a person (“the respondent”) whom the enforcer believes—
(a)
has engaged, is engaging or is likely to engage in a commercial practice which constitutes a relevant infringement (“the infringing practice”), or
(b)
is an accessory to the infringing practice.
(2)
The enforcer may accept an undertaking from the respondent to do one or more of the following—
(a)
in the case of a respondent within subsection (1)(a), not to continue or repeat the infringing practice (where it is alleged that the respondent has engaged or is engaging in that practice);
(b)
in the case of a respondent within subsection (1)(b), not to consent to or connive in the infringing practice;
(c)
in either case, not to engage in the infringing practice in the course of the respondent’s business or another business;
(d)
in either case, not to consent to or connive in the carrying out of the infringing practice by a body corporate with which the respondent has a special relationship (see section 220).
(3)
See also section 164 about the inclusion of enhanced consumer measures in an undertaking under this section.
(4)
Where the enforcer accepts an undertaking under subsection (2) the enforcer may publish the undertaking or accept a further undertaking from the respondent to do so.
(5)
Publication under subsection (4)—
(a)
must be made in such form and manner, and to such an extent, as the enforcer considers appropriate for the purpose of eliminating any continuing effects of the infringing practice;
(b)
is not an enhanced consumer measure for the purposes of this Chapter.
(6)
Where an enforcer has accepted from the respondent an undertaking under this section—
(a)
the enforcer may accept from the respondent any such variation of the undertaking that the enforcer considers appropriate for meeting the purposes for which the undertaking was given;
(b)
the enforcer may release the respondent from the undertaking (whether on its own initiative or at the respondent’s request) if the enforcer considers that the undertaking is no longer necessary to meet those purposes.
(7)
Each enforcer must keep a record of—
(a)
undertakings it has accepted under this section, and
(b)
reviews it has carried out into the effectiveness of such undertakings.
(8)
In determining for the purposes of subsection (1) whether an enforcer could make an application under section 153, section 169 is to be ignored.
164Undertakings under section 163: enhanced consumer measures
(1)
An undertaking under section 163(2) may include a requirement to take such enhanced consumer measures as the enforcer accepting the undertaking considers just and reasonable.
(2)
For this purpose, the enforcer must in particular consider whether any proposed enhanced consumer measures are proportionate having regard to—
(a)
the likely benefit of the measures to consumers,
(b)
the costs likely to be incurred by the respondent, and
(c)
the likely cost to consumers of obtaining the benefit of the measures.
(3)
The costs referred to in subsection (2)(b) are—
(a)
the cost of the measures, and
(b)
the reasonable administrative costs associated with taking the measures.
(4)
Where the respondent is required by an undertaking to take enhanced consumer measures, the undertaking may include requirements for the respondent to provide information or documents to the enforcer accepting the undertaking in order that the enforcer may determine if the respondent is taking those measures.
(5)
Subsection (6) applies if—
(a)
an undertaking under section 163(2) includes enhanced consumer measures offering compensation, and
(b)
a settlement agreement is entered into in connection with the payment of compensation.
(6)
A waiver of a person’s rights in the settlement agreement is not valid if it is a waiver of the right to bring civil proceedings in respect of conduct other than conduct which has given rise to the undertaking.
(7)
This section is subject to section 177 (private designated enforcers).
165Undertakings under section 163: procedural requirements
(1)
This section applies where an enforcer proposes to—
(a)
accept a material variation of an undertaking under section 163, or
(b)
release the respondent from any such undertaking,
and the proposed variation or release has not been requested by the respondent.
(2)
Before taking the proposed action mentioned in subsection (1) the enforcer must—
(a)
give notice to the respondent under subsection (3), and
(b)
consider any representations made in accordance with the notice.
(3)
A notice under this subsection must state—
(a)
the fact that the enforcer is proposing to act as mentioned in subsection (1),
(b)
the reasons for doing so, and
(c)
the means by which, and the time by which, representations may be made in relation to the proposed action.
(4)
If after considering any representations made in accordance with a notice under subsection (3) an enforcer decides to take an action mentioned in subsection (1), the enforcer must give notice to the respondent of that decision.
(5)
The reference in subsection (1)(a) to a material variation is a reference to any variation that the enforcer considers to be material in any respect.
166Consumer protection orders or undertakings to court: further proceedings
(1)
This section applies if the court—
(a)
makes a consumer protection order against a person (“the respondent”) on an application made by an enforcer (“the original application”), or
(b)
accepts an undertaking from the respondent under section 156 or 159 on the making of the original application.
(2)
References in this Part to a “consumer protection order” are references to—
(a)
an enforcement order,
(b)
an interim enforcement order,
(c)
an online interface order, or
(d)
an interim online interface order.
(3)
An application may (subject to subsection (7)) be made to the same court to which the original application was made in respect of a failure to comply with the order or undertaking in question—
(a)
by the enforcer that made the original application, or
(b)
by any other enforcer other than a private designated enforcer.
(4)
An application to the court in respect of a failure to comply with an undertaking may include an application for a consumer protection order of any kind that the enforcer concerned is authorised under this Chapter to apply for.
(5)
If on an application under this section the court finds that an undertaking is not being complied with, the court may do either or both of the following—
(a)
make a consumer protection order (instead of making any other order it has power to make);
(b)
make an order requiring the respondent to pay a monetary penalty.
(6)
Where an application is made under subsection (4) for a consumer protection order—
(b)
the application may be made only in respect of a commercial practice that the enforcer considers a person has engaged or is engaging in (and not in respect of a practice that a person is likely to engage in);
(c)
a power of the court to accept an undertaking instead of making a consumer protection order does not apply,
and the preceding provisions of this Chapter apply subject to this subsection.
(7)
An application may not be made under subsection (3) in the case of a failure to comply with an order or undertaking which consists only of a failure to provide information or documents required by the order or undertaking under section 157(4).
(8)
In addition to any right of appeal on a point of law, a person liable to pay a penalty by virtue of an order under subsection (5)(b) may appeal in respect of—
(a)
the decision to impose the penalty, or
(b)
the nature or amount of the penalty.
(9)
In connection with orders under subsection (5)(b), see further—
(a)
section 168, which provides for the amount of penalties, and
(b)
section 203, which provides for information to accompany such orders.
167Undertakings to public designated enforcers: further proceedings
(1)
This section applies where a public designated enforcer accepts an undertaking from a person (“the respondent”) under section 163.
(2)
The enforcer may apply to the court in respect of a failure to comply with the undertaking.
(3)
An application under subsection (2) may include an application for a consumer protection order of any kind that the enforcer concerned is authorised under this Chapter to apply for.
(4)
If the court finds that the undertaking is not being complied with, the court may do either or both of the following—
(a)
make a consumer protection order (instead of making any other order it has power to make);
(b)
make an order requiring the respondent to pay a monetary penalty.
(5)
A requirement under subsection (4)(b) to pay a monetary penalty may be imposed only if the court is satisfied that the respondent’s failure in question is without reasonable excuse.
(6)
Where an application is made under subsection (2) for a consumer protection order—
(b)
the application may be made only in respect of a commercial practice that the enforcer considers a person has engaged or is engaging in (and not in respect of a practice that a person is likely to engage in);
(c)
a power of the court to accept an undertaking instead of making a consumer protection order does not apply,
and the preceding provisions of this Chapter apply subject to this subsection.
(7)
An application may not be made under subsection (2) in the case of a failure to comply with an undertaking which consists only of a failure to provide information or documents under section 164(4).
(8)
In addition to any right of appeal on a point of law, a person liable to pay a penalty by virtue of an order under subsection (4)(b) may appeal in respect of—
(a)
the decision to impose the penalty, or
(b)
the nature or amount of the penalty.
(9)
In connection with orders under subsection (4)(b), see further—
(a)
section 168, which provides for the amount of penalties, and
(b)
section 203, which provides for information to accompany such orders.
168Monetary penalties under sections 166 and 167: amount
(1)
This section applies in relation to a monetary penalty imposed on a person (“the respondent”) by an order made under section 166 or 167.
(2)
The amount of the 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.
(3)
The penalty must not exceed—
(a)
in the case of a fixed amount, £150,000 or, if higher, 5% 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, for each day £15,000 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.
(4)
In imposing a penalty by reference to a daily rate—
(a)
no account is to be taken of any days before notice of the application under section 166(3) or 167(2) was given to the respondent, and
(b)
unless the court determines an earlier date, the amount payable ceases to accumulate on the day on which the requirements of the undertaking that the respondent has failed to comply with are complied with.