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FACTSHEET
Subject:
The Enterprise Act
Relevant or
Related Legislation:
Enterprise Act
2002
Current
Position:
The Enterprise
Bill received Royal Assent to become the
Enterprise Act in November
2002. The substantive competition and consumer provisions of the
Enterprise Act came into in June 2003.
The Act’s provisions and secondary legislation on corporate solvency
and the abolition of the Crown Preference commenced in the 2003
financial year.
Key Facts:
• The Enterprise
Act contains measures that reform competition law, strengthen consumer
protection and modernises the insolvency regime.
• The Act
included provisions formally creating the Office
of Fair Trading, the Competition
Appeal Tribunal (CAT) and its supporting body the Competition
Service.
• The current
newspaper merger regime will remain in place for the time being as it is
being updated by the Communications Bill.
• The
separate water merger scheme will be commenced once the Water Bill has
clarified the scope of the régime.
• Some
measures brought in by the Act involved personal insolvency (bankruptcy)
reform and also reform of the Insolvency Service financial regime.
Details may be found on the Insolvency
Service website.
What do the
Competition and Consumer measures of The Act do?
The Enterprise
Act:
• Takes the
politics out of competition decisions. Expert, independent competition
bodies take decisions on mergers and markets.
• Provides
procedural improvements for business. For example, there is a new
right of appeal to the Competition Appeals Tribunal in merger and
market inquiries.
• Deters
hardcore cartels. The Act introduces 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.
•
Strengthens the voice of consumers on competition matters. Designate
consumer bodies are able to make ‘super-complaints’ to the OFT and
the OFT is required to respond within 90 days.
• Makes it
easier for individuals to bring claims for damages of losses suffered
due to anti-competitive behaviour. Consumer bodies are able to make
claims on behalf of (identifiable) individuals who have suffered.
• Improves
consumer protection. The
Stop Now Orders regime has been extended to
protect consumers from traders who do not meet their legal
obligations. The new legal enforcement régime applies to
infringements of a wide range of consume protection legislation, such
as failing to carry out a service (i.e. building work or home
maintenance) to a reasonable standard.
Further
enquiries:
Part 9 of Enterprise Act - Disclosure
of Information
DTI -
Enterprise Act Page: Enterprise Act
2002
Office of Fair
Trading: www.oft.gov.uk/enterpriseact.htm
Competition Appeal Tribunal: www.catribunal.org.uk/
Insolvency Service: www.insolvency.gov.uk/
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