Consumer Rights Bill (HL Bill 52)

(a) any application it makes for an injunction or interdict under
paragraph 3,

(b) any injunction or interdict under this Schedule, and

(c) any undertaking under this Schedule.

(2) 5The CMA must respond to a request whether a term or notice, or one of a
similar kind or with a similar effect, is or has been the subject of an
injunction, interdict or undertaking under this Schedule.

(3) Where the term or notice, or one of a similar kind or with a similar effect, is
or has been the subject of an injunction or interdict under this Schedule, the
10CMA must give the person making the request a copy of the injunction or
interdict.

(4) Where the term or notice, or one of a similar kind or with a similar effect, is
or has been the subject of an undertaking under this Schedule, the CMA
must give the person making the request—

(a) 15details of the undertaking, and

(b) if the person giving the undertaking has agreed to amend the term or
notice, a copy of the amendments.

(5) The CMA may arrange the publication of advice and information about the
provisions of this Part.

(6) 20In this paragraph—

(a) references to an injunction or interdict under this Schedule are to an
injunction or interdict granted on an application by the CMA under
paragraph 3 or notified to it under paragraph 5, and

(b) references to an undertaking are to an undertaking given to the CMA
25under paragraph 6 or notified to it under that paragraph.

Meaning of “regulator”

8 (1) In this Schedule “regulator” means—

(a) the CMA,

(b) the Department of Enterprise, Trade and Investment in Northern
30Ireland,

(c) a local weights and measures authority in Great Britain,

(d) the Financial Conduct Authority,

(e) the Office of Communications,

(f) the Information Commissioner,

(g) 35the Gas and Electricity Markets Authority,

(h) the Water Services Regulation Authority,

(i) the Office of Rail Regulation,

(j) the Northern Ireland Authority for Utility Regulation, or

(k) the Consumers’ Association.

(2) 40The Secretary of State may by order made by statutory instrument amend
sub-paragraph (1) so as to add, modify or remove an entry.

(3) An order under sub-paragraph (2) may amend sub-paragraph (1) so as to
add a body that is not a public authority only if the Secretary of State thinks
that the body represents the interests of consumers (or consumers of a
45particular description).

(4) The Secretary of State must publish (and may from time to time vary) other
criteria to be applied by the Secretary of State in deciding whether to add an
entry to, or remove an entry from, sub-paragraph (1).

(5) An order under sub-paragraph (2) may make consequential amendments to
5this Schedule (including with the effect that any of its provisions apply
differently, or do not apply, to a body added to sub-paragraph (1)).

(6) An order under sub-paragraph (2) may contain transitional or transitory
provision or savings.

(7) No order may be made under sub-paragraph (2) unless a draft of the
10statutory instrument containing it has been laid before, and approved by a
resolution of, each House of Parliament.

(8) In this paragraph “public authority” has the same meaning as in section 6 of
the Human Rights Act 1998.

Other definitions

9 15In this Schedule—

• “the CMA” means the Competition and Markets Authority;

• “injunction” includes an interim injunction;

• “interdict” includes an interim interdict.

The Financial Conduct Authority

10 20The functions of the Financial Conduct Authority under this Schedule are to
be treated as functions of the Authority under the Financial Services and
Markets Act 2000.

Section 75

SCHEDULE 4 Amendments consequential on Part 2

25Misrepresentation Act 1976

1 (1) Section 3 of the Misrepresentation Act 1967 (avoidance of provision
excluding liability for misrepresentation) is amended as follows.

(2) At the beginning insert “(1)”.

(3) At the end insert—

“(2) 30This section does not apply to a term in a consumer contract within
the meaning of Part 2 of the Consumer Rights Act 2014 (but see the
provision made about such contracts in section 62 of that Act).”

Unfair Contract Terms Act 1977 (c. 50)Unfair Contract Terms Act 1977 (c. 50)

2 The Unfair Contract Terms Act 1977 is amended as follows.

3 35In section 1(2) (scope of Part 1) for “to 4” substitute “, 3”.

4 In section 2 (negligence liability), after subsection (3) insert—

“(4) This section does not apply to—

(a) a term in a consumer contract, or

(b) a notice to the extent that it is a consumer notice,

5(but see the provision made about such contracts and notices in
sections 62 and 65 of the Consumer Rights Act 2014).”

5 (1) Section 3 (liability arising in contract) is amended as follows.

(2) In subsection (1) omit “as consumer or”.

(3) After subsection (2) insert—

“(3) 10This section does not apply to a term in a consumer contract (but see
the provision made about such contracts in section 62 of the
Consumer Rights Act 2014).”

6 Omit section 4 (unreasonable indemnity clauses).

7 Omit section 5 (“guarantee” of consumer goods).

8 (1) 15Section 6 (sale and hire-purchase) is amended as follows.

(2) After subsection (1) insert—

“(1A) Liability for breach of the obligations arising from—

(a) section 13, 14 or 15 of the 1979 Act (seller’s implied
undertakings as to conformity of goods with description or
20sample, or as to their quality or fitness for a particular
purpose);

(b) section 9, 10 or 11 of the 1973 Act (the corresponding things
in relation to hire purchase),

cannot be excluded or restricted by reference to a contract term
25except in so far as the term satisfies the requirement of
reasonableness.”

(3) Omit subsections (2) and (3).

(4) After subsection (4) insert—

“(5) This section does not apply to a consumer contract (but see the
30provision made about such contracts in section 31 of the Consumer
Rights Act 2014).”

9 (1) Section 7 (miscellaneous contracts under which goods pass) is amended as
follows.

(2) After subsection (1) insert—

“(1A) 35Liability in respect of the goods’ correspondence with description or
sample, or their quality or fitness for any particular purpose, cannot
be excluded or restricted by reference to such a term except in so far
as the term satisfies the requirement of reasonableness.”

(3) Omit subsections (2) and (3).

(4) After subsection (4) insert—

“(4A) This section does not apply to a consumer contract (but see the
provision made about such contracts in section 31 of the Consumer
Rights Act 2014).”

10 5Omit section 9 (effect of breach of contract).

11 Omit section 12 (“dealing as consumer”).

12 In section 13(1) (varieties of exemption clauses) for “and 5 to” substitute “, 6
and”.

13 In section 14 (interpretation of Part 1), at the appropriate places insert—

• 10““consumer contract” has the same meaning as in the Consumer
  Rights Act 2014 (see section 61);”;

• ““consumer notice” has the same meaning as in the Consumer
  Rights Act 2014 (see section 61);”.

14 (1) Section 15 (scope of Part 2) is amended as follows.

(2) 15In subsection (2) for “to 18” substitute “and 17”.

(3) In subsection (3)—

(a) for “to 18” substitute “and 17”, and

(b) in paragraph (b) omit sub-paragraph (ii) and the “or” preceding it.

15 In section 16 (liability for breach of duty), after subsection (3) insert—

“(4) 20This section does not apply to—

(a) a term in a consumer contract, or

(b) a notice to the extent that it is a consumer notice,

(but see the provision made about such contracts and notices in
sections 62 and 65 of the Consumer Rights Act 2014).”

16 (1) 25Section 17 (control of unreasonable exemptions in consumer or standard
form contracts) is amended as follows.

(2) In the heading omit “consumer or”.

(3) In subsection (1)—

(a) omit “a consumer contract or”,

(b) 30in paragraph (a) omit “consumer or”, and

(c) in paragraph (b) omit “consumer or”.

(4) After subsection (2) insert—

“(3) This section does not apply to a term in a consumer contract (but see
the provision made about such contracts in section 62 of the
35Consumer Rights Act 2014).”

17 Omit section 18 (unreasonable indemnity clauses in consumer contracts).

18 Omit section 19 (“guarantee” of consumer goods).

19 (1) Section 20 (obligations implied by law in sale and hire-purchase contracts) is
amended as follows.

(2) After subsection (1) insert—

“(1A) Any term of a contract which purports to exclude or restrict liability
for breach of the obligations arising from—

(a) section 13, 14 or 15 of the 1979 Act (seller’s implied
5undertakings as to conformity of goods with description or
sample, or as to their quality or fitness for a particular
purpose);

(b) section 9, 10 or 11 of the 1973 Act (the corresponding things
in relation to hire purchase),

10shall have effect only if it was fair and reasonable to incorporate the
term in the contract.

(1B) This section does not apply to a consumer contract (but see the
provision made about such contracts in section 31 of the Consumer
Rights Act 2014).”

(3) 15Omit subsection (2).

20 (1) Section 21 (obligations implied by law in other contracts for the supply of
goods) is amended as follows.

(2) In subsection (1), for paragraphs (a) and (b) substitute “such as is referred to
in subsection (3) below shall have no effect if it was not fair and reasonable
20to incorporate the term in the contract.”

(3) In subsection (2)(b) omit “unless it is a consumer contract (and then only in
favour of the consumer)”.

(4) After subsection (3A) insert—

“(3B) This section does not apply to a consumer contract (but see the
25provision made about such contracts in section 31 of the Consumer
Rights Act 2014).”

21 Omit section 22 (consequence of breach of contract).

22 (1) Section 25 (interpretation of Part 2) is amended as follows.

(2) In subsection (1)—

(a) 30omit the definition of “consumer”,

(b) for the definition of “consumer contract” substitute—

• ““consumer contract” has the same meaning as in the
  Consumer Rights Act 2014 (see section 61);”, and

(c) at the appropriate place insert—

• 35““consumer notice” has the same meaning as in the
  Consumer Rights Act 2014 (see section 61);”.

(3) Omit subsections (1A) and (1B).

(4) In subsection (5), for “and 16 and 19 to” substitute “, 16, 20 and”.

23 In section 26(2) (international supply contracts) omit “or 4”.

24 (1) 40Section 27 (choice of law clauses) is amended as follows.

(2) In subsection (2)—

(a) omit “(either or both)”, and

(b) omit paragraph (b) and the “or” preceding it.

(3) Omit subsection (3).

25 Omit section 28 (temporary provision for sea carriage of passengers).

26 (1) Schedule 1 (scope of sections 2 to 4 and 7) is amended as follows.

(2) In the heading, for “to 4” substitute “, 3”.

(3) 5In paragraph 1, for “to 4” substitute “and 3”.

(4) In paragraph 2—

(a) for “to 4” substitute “, 3”, and

(b) omit “except in favour of a person dealing as consumer”.

(5) In paragraph 3—

(a) 10for “, 3 and 4” substitute “and 3”, and

(b) omit “, except in favour of a person dealing as consumer,”.

27 In Schedule 2 (“guidelines” for application of reasonableness test), for “6(3),
7(3) and (4),” substitute “6(1A), 7(1A) and (4),”.

Companies Act 1985 (c. 6)1985 (c. 6)

28 (1) 15Schedule 15D to the Companies Act 1985 (specified descriptions of
disclosures for the purposes of section 449) is amended as follows.

(2) In paragraph 17—

(a) omit paragraph (i), and

(b) after paragraph (k) insert—

“(l) 20Schedule 3 to the Consumer Rights Act 2014”.

(3) For paragraph 25 substitute—

“25 A disclosure for the purposes of enabling or assisting a regulator
under Schedule 3 to the Consumer Rights Act 2014 other than the
Competition and Markets Authority to exercise its functions
25under that Schedule.”

Merchant Shipping Act 1995 (c. 21)1995 (c. 21)

29 In section 184 of the Merchant Shipping Act 1995 (application of Schedule 6
to carriage within British Islands) omit subsection (2).

Arbitration Act 1996 (c. 23)1996 (c. 23)

30 30The Arbitration Act 1996 is amended as follows.

31 (1) Section 28 (application of unfair terms regulations to consumer arbitration
agreements) is amended as follows.

(2) In subsection (1), for “the Unfair Terms in Consumer Contracts Regulations
1994” substitute “Part 2 (unfair terms) of the Consumer Rights Act 2014”.

(3) 35For subsection (2) substitute—

“(2) In those section “the Part” means Part 2 (unfair terms) of the
Consumer Rights Act 2014.”

32 For section 90 (regulations apply where consumer is a legal person)

substitute—

“90 Part applies where consumer is a legal person

The Part applies where the consumer is a legal person as it applies
where the consumer is an individual.”

33 5In section 91(1) (arbitration agreement unfair where modest amount sought)
for “Regulations” substitute “Part”.

Unfair Terms in Consumer Contracts Regulations 1999 (S.I. 1999/2083S.I. 1999/2083)

34 The Unfair Terms in Consumer Contracts Regulations 1999 are revoked.

Enterprise Act 2002 (c. 40)2002 (c. 40)

35 10In Schedule 15 to the Enterprise Act 2002 (enactments for the purposes of
which disclosures may be made), at the end insert—

• “Schedule 3 to the Consumer Rights Act 2014.”

Companies Act 2006

36 The Companies Act 2006 is amended as follows.

37 (1) 15Section (A) of Part 2 of Schedule 2 (specified descriptions of disclosures for
the purposes of section 948) is amended as follows.

(2) In paragraph 25—

(a) omit paragraph (h), and

(b) after paragraph (j) insert—

“(k) 20Schedule 3 to the Consumer Rights Act 2014”.

(3) For paragraph 33 substitute—

“33 A disclosure for the purposes of enabling or assisting a regulator
under Schedule 3 to the Consumer Rights Act 2014 other than the
Competition and Markets Authority to exercise its functions
25under that Schedule.”

38 (1) Part 2 of Schedule 11A (specified descriptions of disclosures for the purposes
of section 1224A) is amended as follows.

(2) In paragraph 39, for paragraph (i) insert—

“(i) Schedule 3 to the Consumer Rights Act 2014”.

(3) 30For paragraph 48 substitute—

“48 A disclosure for the purposes of enabling or assisting a regulator
under Schedule 3 to the Consumer Rights Act 2014 other than the
Competition and Markets Authority to exercise its functions
under that Schedule.”

35Consequential repeals

39 In consequence of the amendments made by this Schedule—

(a) omit paragraph 19(b) of Schedule 2 to the Sale of Goods Act 1979,
and

(b) in paragraph 21 of that Schedule, omit “and (2)(a)” and “(in each
case)”.

Section 77

SCHEDULE 5 Investigatory powers etc.

5Part 1 Basic concepts

Overview

1 (1) This Schedule confers investigatory powers on enforcers and specifies the
purposes for which and the circumstances in which those powers may be
10exercised.

(2) Part 1 of this Schedule contains interpretation provisions; in particular
paragraphs 2 to 6 explain what is meant by an “enforcer”.

(3) Part 2 of this Schedule explains what is meant by “the enforcer’s legislation”.

(4) Part 3 of this Schedule contains powers in relation to the production of
15information; paragraph 13 sets out which enforcers may exercise those
powers, and the purposes for which they may do so.

(5) Part 4 of this Schedule contains further powers; paragraphs 19 and 20 set out
which enforcers may exercise those powers, and the purposes for which they
may do so.

(6) 20Part 5 of this Schedule contains provisions that are supplementary to the
powers in Parts 3 and 4 of this Schedule.

(7) Part 6 of this Schedule makes provision about the exercise of functions by
certain enforcers outside their area or district and the bringing of
proceedings in relation to conduct outside an enforcer’s area or district.

25Enforcers

2 (1) In this Schedule “enforcer” means—

(a) a domestic enforcer,

(b) an EU enforcer,

(c) a public designated enforcer, or

(d) 30an unfair contract terms enforcer.

(2) But in Part 4 and paragraphs 38 and 41 of this Schedule “enforcer” means—

(a) a domestic enforcer, or

(b) an EU enforcer.

(3) In paragraphs 13, 19 and 20 of this Schedule, a reference to an enforcer
35exercising a power includes a reference to an officer of the enforcer
exercising that power.

Domestic enforcers

3 (1) In this Schedule “domestic enforcer” means—

(a) the Competition and Markets Authority,

(b) a local weights and measures authority in Great Britain,

(c) 5a district council in England,

(d) the Department of Enterprise, Trade and Investment in Northern
Ireland,

(e) a district council in Northern Ireland,

(f) the Secretary of State,

(g) 10the Gas and Electricity Markets Authority,

(h) the British Hallmarking Council,

(i) an assay office within the meaning of the Hallmarking Act 1973, or

(j) any other person to whom the duty in subsection (1) of section 27 of
the Consumer Protection Act 1987 (duty to enforce safety provisions)
15applies by virtue of regulations under subsection (2) of that section.

(2) But the Gas and Electricity Markets Authority is not a domestic enforcer for
the purposes of Part 4 of this Schedule.

(3) The reference to the Department of Enterprise, Trade and Investment in
Northern Ireland includes a person with whom the Department has made
20arrangements, under paragraph 3(1) of Schedule 15 to the Lifts Regulations
1997 (SI 1997/831SI 1997/831) for enforcement of those regulations.

EU enforcers

4 In this Schedule “EU enforcer” means—

(a) the Competition and Markets Authority,

(b) 25a local weights and measures authority in Great Britain,

(c) the Department of Enterprise, Trade and Investment in Northern
Ireland,

(d) the Financial Conduct Authority,

(e) the Civil Aviation Authority,

(f) 30the Secretary of State,

(g) the Department of Health, Social Services and Public Safety in
Northern Ireland,

(h) the Office of Communications,

(i) an enforcement authority within the meaning of section 120(15) of
35the Communications Act 2003 (regulation of premium rate services),
or

(j) the Information Commissioner.

Public designated enforcers

5 In this Schedule “public designated enforcer” means a person or body
40which—

(a) is designated by order under subsection (2) of section 213 of the
Enterprise Act 2002, and

(b) has been designated by virtue of subsection (3) of that section (which
provides that the Secretary of State may designate a public body only
45if satisfied that it is independent).

Unfair contract terms enforcer

6 In this Schedule “unfair contract terms enforcer” means a person or body
which—

(a) is for the time being listed in paragraph 8(1) of Schedule 3 (persons
5or bodies that may enforce provisions about unfair contract terms),
and

(b) is a public authority within the meaning of section 6 of the Human
Rights Act 1998.

Officers

7 (1) 10In this Schedule “officer”, in relation to an enforcer, means—

(a) an inspector appointed by the enforcer to exercise powers under this
Schedule, or authorised to do so,

(b) an officer of the enforcer appointed by the enforcer to exercise
powers under this Schedule, or authorised to do so,

(c) 15an employee of the enforcer (other than an inspector or officer)
appointed by the enforcer to exercise powers under this Schedule, or
authorised to do so, or

(d) a person (other than an inspector, officer or employee of the enforcer)
authorised by the enforcer to exercise powers under this Schedule.

(2) 20But references in this Schedule to an officer in relation to a particular power
only cover a person within sub-paragraph (1) if and to the extent that the
person has been appointed or authorised to exercise that power.

(3) A person who, immediately before the coming into force of this Schedule,
was appointed or authorised to exercise a power replaced by a power in this
25Schedule is to be treated as having been appointed or authorised to exercise
the new power.

(4) In this paragraph “employee”, in relation to the Secretary of State, means a
person employed in the civil service of the State.

Interpretation of other terms

8 30In this Schedule—

• “Community infringement” has the same meaning as in section 212 of
  the Enterprise Act 2002;

• “document” includes information recorded in any form;

• “enforcement order” means an order under section 217 of the
  35Enterprise Act 2002;

• “interim enforcement order” means an order under section 218 of that
  Act;

• “the Regulation on Accreditation and Market Surveillance” means
  Regulation (EC) No 765/2008 of the European Parliament and of the
  40Council of 9 July 2008 setting out the requirements for accreditation
  and market surveillance relating to the marketing of products and
  repealing Regulation (EEC) No 339/93.