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FACTSHEET and Frequently Asked Questions (FAQs) Subject: The Enterprise Act Relevant or Related Legislation Enterprise Act 2002 Current Position The Enterprise Bill received Royal Assent to become the Enterprise Act on 7 November 2002. The substantive competition and consumer provisions of the Enterprise Act will come fully into force on 20 June 2003. Key Facts • The Enterprise Act contains measures that reform competition law, strengthen consumer protection and modernise the insolvency regime. • On 1 April 2003 provisions formally creating the Office of Fair Trading, the Competition Appeal Tribunal (CAT) and the Competition Service came into force. • The substantive competition and consumer provisions (parts 1 to 9) will come into force on 20 June 2003. • The newspaper merger regime will remain in place until later in the year as it is being updated by the Communications Bill. • We expect the Act's provisions and secondary legislation on corporate insolvency and the abolition of Crown preference to be commenced in the 2003 financial year. • Some measures - personal insolvency (bankruptcy) reform and the reform of the Insolvency Service financial regime - will not come into place until the 2004 financial year, once the necessary staff training and infrastructure have been put in place. • Updated
details of implementation, consultations and timing can be obtained via
the Enterprise Act website. www.dti.gov.uk/enterpriseact/
Q2. Why is it 'good news for business and consumers'? Q3. Where can I find up to date information on the timetable for implementation of the Act? In conjunction with other Government policies, this significant Act will help boost productivity and enterprise. It is good news for business and consumers. The Act will: • Take politics out of competition decisions. • Provide procedural improvements for business. • Deter those individuals who dishonestly operate hardcore cartels. • Strengthen the voice of consumers on competition matters. • Provide greater opportunities to gain redress for victims of anti-competitive behaviour. • Improve consumer protection. • Abolish the Crown's preferential right to recover unpaid taxes ahead of other creditors. • Reform corporate insolvency law. • Encourage entrepreneurship and provide a fresh start to those who have failed through no fault of their own.
Because the Enterprise Act will: • Take politics out of competition decisions. Expert, independent, competition bodies will take decisions on mergers and markets. • Provide procedural improvements for business. For example, there will be a new right of appeal to the Competition Appeals Tribunals in merger and market inquiries. • Deter hardcore cartels. The Act will introduce criminal sanctions with a maximum penalty of five years in prison for those who operate agreements to fix prices, share markets, limit production and rig bids. • Strengthen the voice of consumers on competition matters. Designated consumer bodies will be able to make 'super-complaints' to the OFT. The OFT will be required to respond within 90 days. • Make it easier for individuals to bring claims for damages for looses suffered due to anti-competitive behaviour. Consumer bodies will be able to make claims on behalf of (identifiable) individuals who have suffered. • Improve consumer protection. The Stop Now Orders regime will be extended to protect consumers from traders who do not meet their legal obligations. The new enforcement regime will apply to infringements of a wide range of consumer protection legislation s of consumers, such as failing to carry out a service (e.g. building work or home maintenance) to a reasonable standard. • Abolish the Crown's preferential right to recover unpaid taxes ahead of other creditors. This will bring real benefits to unsecured creditors, including many small firms. • Reform corporate insolvency law by restricting the use of administrative receivership and streamlining administration; making it quicker, more flexible, easier to access and fairer. • Provide a fresh start to those who have failed through no fault of their own - through a modernised bankruptcy regime - and provides effective protection against the small minority of bankrupts who abuse their creditors and the public.
The general position is set out under the heading “Key Facts” above. Updated details of implementation, consultations and timing can be obtained via the Enterprise Act website at www.dti.gov.uk/enterpriseact Further enquiries DTI - Enterprise
Act page Office of Fair
Trading - Enterprise Act page Competition
Commission - Enterprise Act homepage
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