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: Office of Fair Trading Competition Appeal Tribunal Insolvency Service | 
