Enterprise Act Part 8 - Enforcement Orders Quick Facts
Subject: Enterprise Act – Part 8 - Enforcement Orders
Relevant or Related Legislation: The Enterprise Act 2002
Key Facts:
• The Enterprise Act 2002 (the Act) received Royal Assent on 7 November 2002. The substantive consumer and competition provisions of the Act came into force on 20 June 2003.
• The Act extended the scope of the earlier Stop Now Order enforcement regime to include a wider range of domestic consumer protection legislation.
• Part 8 of the Act strengthens consumer protection by giving enforcement bodies such as the Office of Fair Trading (OFT) and Trading Standards Departments wider powers to obtain court orders (which are similar to injunctions) against businesses that do not comply with their legal obligations toward the consumer.
• Enforcers are able to use Enforcement Orders to clamp down on traders who harm the collective interests of consumers. For example, if a trader never gives money back on faulty goods, the order could specify they stop this course of conduct and comply with civil law obligations contained in the Sale of Goods Act 1979 as amended.
• Breach of an Enforcement Order constitutes a contempt of court and could incur a fine and/or imprisonment.
• The Office of Fair Trading is responsible for coordinating enforcement action under Part 8 of the Act.
Frequently asked Questions
Q1. Who can enforce Part 8?
Q2. What is the impact of Part 8 on consumer protection?
Q3. Does Part 8 impose additional burdens on business?
Q4. Can Part 8 be used for business-to-business transactions?
Q5. Will I be able to get my money back if the trader receives an Enforcement Order?
Q6. How can I find out if there is an Enforcement Order against a company?
Q7. What if a business has changed its name? Will the Enforcement Order still apply?
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Q1. Who can enforce Part 8?
There are three types of enforcers specified in Part 8. These are:
General enforcers, namely the OFT, the Trading Standards Service in Great Britain and the Department of Enterprise, Trade and Investment in Northern Ireland;
Enforcers designated by the Secretary of State including Ofcom, the Information Commissioner, the Rail Regulator, the Civil Aviation Authority and the Financial Services Authority and;
Community Enforcers – from other European Economic Area states.
Q2. What is the impact of Part 8 on consumer protection?
Part 8 of the Act improved consumer protection by giving enforcers greater powers to obtain court orders against businesses that do not comply with their legal obligations to consumers.
Part 8 establishes a consistent enforcement regime, with a more refined and efficient procedure. This regime enables injunctive action to be taken against businesses infringing a wide range of consumer protection legislation.
Q3. Does Part 8 impose additional burdens on business?
Part 8 imposed no new obligations on business. It provides an enforcement tool and gives enforcement powers to bodies previously unable to take action in certain areas. Only businesses that consistently harm the collective interests of consumers are subject to enforcement action.
Q4. Can Part 8 be used for business-to-business transactions?
No. Part 8 of the Enterprise Act can only be used where there is harm caused to a group of consumers. A consumer will be someone who is not acting in the course of a business, although it can be an individual who is setting up a business but has not yet begun trading.
Q5. Will I be able to get my money back if the trader receives an Enforcement Order?
The Part 8 enforcement mechanism is not a means of pursuing individual redress. However it does enable Trading Standards and other enforcers to stop the activities of businesses who continually rip off customers. Whether or not the trader is the subject of an Order, consumers can still exercise their rights to obtain individual redress, for example by suing the trader through the Small Claims Procedure in the County Court. Your local Citizen’s Advice Bureau, a Solicitor or in some cases Trading Standards Department can advise you whether to do this.
Q6. How can I find out if there is an Enforcement Order against a company?
The OFT website publishes Part 8 actions.
Q7. What if a business has changed its name? Will the Order still apply?
Yes. An Order can be taken against an individual as well as a business. This means that the order will apply to any future conduct by that individual. Breach of an Enforcement Order is consider a contempt of court and is punishable by a fine and/or imprisonment.