Standard view

Royal arms

Enterprise Act 2002

2002 CHAPTER 40

CONTENTS

Go to Preamble

  1. Part 1

    The Office of Fair Trading

    1. Establishment of OFT

      1. 1. The Office of Fair Trading

      2. 2. The Director General of Fair Trading

      3. 3. Annual plan

      4. 4. Annual and other reports

    2. General functions of OFT

      1. 5. Acquisition of information etc.

      2. 6. Provision of information etc. to the public

      3. 7. Provision of information and advice to Ministers etc.

      4. 8. Promoting good consumer practice

    3. Miscellaneous

      1. 9. Repeal of certain powers of direction

      2. 10. Part 2 of the 1973 Act

      3. 11. Super-complaints to OFT

  2. Part 2

    The Competition Appeal Tribunal

    1. The Competition Appeal Tribunal

      1. 12. The Competition Appeal Tribunal

      2. 13. The Competition Service

      3. 14. Constitution of Tribunal for particular proceedings and its decisions

      4. 15. Tribunal rules

      5. 16. Transfers of certain proceedings to and from Tribunal

    2. Proceedings under Part 1 of 1998 Act

      1. 17. Third party appeals

      2. 18. Monetary claims

      3. 19. Claims on behalf of consumers

    3. Other amendments of 1998 Act

      1. 20. Findings of infringements

      2. 21. Amendment of 1998 Act relating to the Tribunal

  3. Part 3

    Mergers

    1. Chapter 1

      Duty to make references

      1. Duty to make references: completed mergers

        1. 22. Duty to make references in relation to completed mergers

        2. 23. Relevant merger situations

        3. 24. Time-limits and prior notice

        4. 25. Extension of time-limits

        5. 26. Enterprises ceasing to be distinct enterprises

        6. 27. Time when enterprises cease to be distinct

        7. 28. Turnover test

        8. 29. Obtaining control by stages

        9. 30. Relevant customer benefits

        10. 31. Information powers in relation to completed mergers

        11. 32. Supplementary provision for purposes of sections 25 and 31

      2. Duty to make references: anticipated mergers

        1. 33. Duty to make references in relation to anticipated mergers

        2. 34. Supplementary provision in relation to anticipated mergers

      3. Determination of references

        1. 35. Questions to be decided in relation to completed mergers

        2. 36. Questions to be decided in relation to anticipated mergers

        3. 37. Cancellation and variation of references under section 22 or 33

        4. 38. Investigations and reports on references under section 22 or 33

        5. 39. Time-limits for investigations and reports

        6. 40. Section 39: supplementary

        7. 41. Duty to remedy effects of completed or anticipated mergers

    2. Chapter 2

      Public interest cases

      1. Power to make references

        1. 42. Intervention by Secretary of State in certain public interest cases

        2. 43. Intervention notices under section 42

        3. 44. Investigation and report by OFT

        4. 45. Power of Secretary of State to refer matter to Commission

        5. 46. References under section 45: supplementary

      2. Reports on references

        1. 47. Questions to be decided on references under section 45

        2. 48. Cases where references or certain questions need not be decided

        3. 49. Variation of references under section 45

        4. 50. Investigations and reports on references under section 45

        5. 51. Time-limits for investigations and reports by Commission

        6. 52. Section 51: supplementary

        7. 53. Restrictions on action where public interest considerations not finalised

      3. Decisions of the Secretary of State

        1. 54. Decision of Secretary of State in public interest cases

        2. 55. Enforcement action by Secretary of State

      4. Other

        1. 56. Competition cases where intervention on public interest grounds ceases

        2. 57. Duties of OFT and Commission to inform Secretary of State

        3. 58. Specified considerations

    3. Chapter 3

      Other special cases

      1. Special public interest cases

        1. 59. Intervention by Secretary of State in special public interest cases

        2. 60. Special intervention notices under section 59

        3. 61. Initial investigation and report by OFT

        4. 62. Power of Secretary of State to refer the matter

        5. 63. Questions to be decided on references under section 62

        6. 64. Cancellation and variation of references under section 62

        7. 65. Investigations and reports on references under section 62

        8. 66. Decision and enforcement action by Secretary of State

      2. European mergers

        1. 67. Intervention to protect legitimate interests

        2. 68. Scheme for protecting legitimate interests

      3. Other

        1. 69. Newspaper mergers

        2. 70. Water mergers

    4. Chapter 4

      Enforcement

      1. Powers exercisable before references under section 22 or 33

        1. 71. Initial undertakings: completed mergers

        2. 72. Initial enforcement orders: completed mergers

        3. 73. Undertakings in lieu of references under section 22 or 33

        4. 74. Effect of undertakings under section 73

        5. 75. Order-making power where undertakings under section 73 not fulfilled etc.

        6. 76. Supplementary interim order-making power

      2. Interim restrictions and powers

        1. 77. Restrictions on certain dealings: completed mergers

        2. 78. Restrictions on certain share dealings: anticipated mergers

        3. 79. Sections 77 and 78: further interpretation provisions

        4. 80. Interim undertakings

        5. 81. Interim orders

      3. Final powers

        1. 82. Final undertakings

        2. 83. Order-making power where final undertakings not fulfilled

        3. 84. Final orders

      4. Public interest and special public interest cases

        1. 85. Enforcement regime for public interest and special public interest cases

      5. Undertakings and orders: general provisions

        1. 86. Enforcement orders: general provisions

        2. 87. Delegated power of directions

        3. 88. Contents of certain enforcement orders

        4. 89. Subject-matter of undertakings

        5. 90. Procedural requirements for certain undertakings and orders

        6. 91. Register of undertakings and orders

      6. Enforcement functions of OFT

        1. 92. Duty of OFT to monitor undertakings and orders

        2. 93. Further role of OFT in relation to undertakings and orders

      7. Other

        1. 94. Rights to enforce undertakings and orders

        2. 95. Rights to enforce statutory restrictions

    5. Chapter 5

      Supplementary

      1. Merger notices

        1. 96. Merger notices

        2. 97. Period for considering merger notices

        3. 98. Section 97: supplementary

        4. 99. Certain functions of OFT and Secretary of State in relation to merger notices

        5. 100. Exceptions to protection given by merger notices

        6. 101. Merger notices: regulations

        7. 102. Power to modify sections 97 to 101

      2. General duties in relation to references

        1. 103. Duty of expedition in relation to references

        2. 104. Certain duties of relevant authorities to consult

      3. Information and publicity requirements

        1. 105. General information duties of OFT and Commission

        2. 106. Advice and information about references under sections 22 and 33

        3. 107. Further publicity requirements

        4. 108. Defamation

      4. Investigation powers

        1. 109. Attendance of witnesses and production of documents etc.

        2. 110. Enforcement of powers under section 109: general

        3. 111. Penalties

        4. 112. Penalties: main procedural requirements

        5. 113. Payments and interest by instalments

        6. 114. Appeals in relation to penalties

        7. 115. Recovery of penalties

        8. 116. Statement of policy

        9. 117. False or misleading information

      5. Reports

        1. 118. Excisions from reports

        2. 119. Minority reports of Commission

      6. Miscellaneous

        1. 120. Review of decisions under Part 3

        2. 121. Fees

        3. 122. Primacy of Community law

        4. 123. Power to alter share of supply test

      7. Other

        1. 124. Orders and regulations under Part 3

        2. 125. Offences by bodies corporate

        3. 126. Service of documents

        4. 127. Associated persons

        5. 128. Supply of services and market for services etc.

        6. 129. Other interpretation provisions

        7. 130. Index of defined expressions

  4. Part 4

    Market Investigations

    1. Chapter 1

      Market investigation references

      1. Making of references

        1. 131. Power of OFT to make references

        2. 132. Ministerial power to make references

        3. 133. Contents of references

      2. Determination of references

        1. 134. Questions to be decided on market investigation references

        2. 135. Variation of market investigation references

        3. 136. Investigations and reports on market investigation references

        4. 137. Time-limits for market investigations and reports

        5. 138. Duty to remedy adverse effects

    2. Chapter 2

      Public interest cases

      1. Intervention notices

        1. 139. Public interest intervention by Secretary of State

      2. Intervention notices under section 139(1)

        1. 140. Intervention notices under section 139(1)

        2. 141. Questions to be decided by Commission

        3. 142. Investigations and reports by Commission

        4. 143. Publication etc. of reports of Commission

        5. 144. Time-limits for investigations and reports: Part 4

        6. 145. Restrictions where public interest considerations not finalised: Part 4

        7. 146. Decision of Secretary of State

        8. 147. Remedial action by Secretary of State

        9. 148. Reversion of the matter to the Commission

      3. Intervention notices under section 139(2)

        1. 149. Intervention notices under section 139(2)

        2. 150. Power of veto of Secretary of State

      4. Other

        1. 151. Further interaction of intervention notices with general procedure

        2. 152. Certain duties of OFT and Commission

        3. 153. Specified considerations: Part 4

    3. Chapter 3

      Enforcement

      1. Undertakings and orders

        1. 154. Undertakings in lieu of market investigation references

        2. 155. Undertakings in lieu: procedural requirements

        3. 156. Effect of undertakings under section 154

        4. 157. Interim undertakings: Part 4

        5. 158. Interim orders: Part 4

        6. 159. Final undertakings: Part 4

        7. 160. Order-making power where final undertakings not fulfilled: Part 4

        8. 161. Final orders: Part 4

      2. Enforcement functions of OFT

        1. 162. Duty of OFT to monitor undertakings and orders: Part 4

        2. 163. Further role of OFT in relation to undertakings and orders: Part 4

      3. Supplementary

        1. 164. Enforcement undertakings and orders under this Part: general provisions

        2. 165. Procedural requirements for certain undertakings and orders: Part 4

        3. 166. Register of undertakings and orders: Part 4

        4. 167. Rights to enforce undertakings and orders under this Part

    4. Chapter 4

      Supplementary

      1. Regulated markets

        1. 168. Regulated markets

      2. Consultation, information and publicity

        1. 169. Certain duties of relevant authorities to consult: Part 4

        2. 170. General information duties

        3. 171. Advice and information: Part 4

        4. 172. Further publicity requirements: Part 4

        5. 173. Defamation: Part 4

      3. Investigation powers

        1. 174. Investigation powers of OFT

        2. 175. Enforcement of powers under section 174: offences

        3. 176. Investigation powers of the Commission

      4. Reports

        1. 177. Excisions from reports: Part 4

        2. 178. Minority reports of Commission: Part 4

      5. Other

        1. 179. Review of decisions under Part 4

        2. 180. Offences

        3. 181. Orders under Part 4

        4. 182. Service of documents: Part 4

        5. 183. Interpretation: Part 4

        6. 184. Index of defined expressions: Part 4

  5. Part 5

    The Competition Commission

    1. 185. The Commission

    2. 186. Annual report of Commission

    3. 187. Commission rules of procedure

  6. Part 6

    Cartel offence

    1. Cartel offence

      1. 188. Cartel offence

      2. 189. Cartel offence: supplementary

      3. 190. Cartel offence: penalty and prosecution

      4. 191. Extradition

    2. Criminal investigations by OFT

      1. 192. Investigation of offences under section 188

      2. 193. Powers when conducting an investigation

      3. 194. Power to enter premises under a warrant

      4. 195. Exercise of powers by authorised person

      5. 196. Privileged information etc.

      6. 197. Restriction on use of statements in court

      7. 198. Use of statements obtained under Competition Act 1998

      8. 199. Surveillance powers

      9. 200. Authorisation of action in respect of property

      10. 201. Offences

      11. 202. Interpretation of sections 192 to 201

  7. Part 7

    Miscellaneous Competition Provisions

    1. Powers of entry under 1998 Act

      1. 203. Powers of entry

    2. Directors disqualification

      1. 204. Disqualification

    3. Miscellaneous

      1. 205. Super-complaints to regulators other than OFT

      2. 206. Power to modify Schedule 8

      3. 207. Repeal of Schedule 4 to the 1998 Act

      4. 208. Repeal of Part 6 of Fair Trading Act 1973

      5. 209. Reform of Community competition law

  8. Part 8

    Enforcement of certain consumer legislation

    1. Introduction

      1. 210. Consumers

      2. 211. Domestic infringements

      3. 212. Community infringements

      4. 213. Enforcers

    2. Enforcement procedure

      1. 214. Consultation

      2. 215. Applications

      3. 216. Applications: directions by OFT

      4. 217. Enforcement orders

      5. 218. Interim enforcement order

      6. 219. Undertakings

      7. 220. Further proceedings

      8. 221. Community infringements: proceedings

      9. 222. Bodies corporate: accessories

      10. 223. Bodies corporate: orders

    3. Information

      1. 224. OFT

      2. 225. Other enforcers

      3. 226. Notices: procedure

      4. 227. Notices: enforcement

    4. Miscellaneous

      1. 228. Evidence

      2. 229. Advice and information

      3. 230. Notice to OFT of intended prosecution

      4. 231. Notice of convictions and judgments to OFT

    5. Interpretation

      1. 232. Goods and services

      2. 233. Person supplying goods

      3. 234. Supply of services

      4. 235. Injunctions Directive

    6. Crown

      1. 236. Crown

  9. Part 9

    Information

    1. Restrictions on disclosure

      1. 237. General restriction

      2. 238. Information

    2. Permitted disclosure

      1. 239. Consent

      2. 240. Community obligations

      3. 241. Statutory functions

      4. 242. Criminal proceedings

      5. 243. Overseas disclosures

      6. 244. Specified information: considerations relevant to disclosure

    3. Offences

      1. 245. Offences

    4. General

      1. 246. Subordinate legislation

      2. 247. Repeals

  10. Part 10

    Insolvency

    1. Companies etc.

      1. 248. Replacement of Part II of Insolvency Act 1986

      2. 249. Special administration regimes

      3. 250. Prohibition of appointment of administrative receiver

      4. 251. Abolition of Crown preference

      5. 252. Unsecured creditors

      6. 253. Liquidator’s powers

      7. 254. Application of insolvency law to foreign company

      8. 255. Application of law about company arrangement or administration to non-company

    2. Individuals

      1. 256. Duration of bankruptcy

      2. 257. Post-discharge restrictions

      3. 258. Investigation by official receiver

      4. 259. Income payments order

      5. 260. Income payments agreement

      6. 261. Bankrupt’s home

      7. 262. Powers of trustee in bankruptcy

      8. 263. Repeal of certain bankruptcy offences

      9. 264. Individual voluntary arrangement

      10. 265. Disqualification from office: justice of the peace

      11. 266. Disqualification from office: Parliament

      12. 267. Disqualification from office: local government

      13. 268. Disqualification from office: general

      14. 269. Minor and consequential amendments

    3. Money

      1. 270. Fees

      2. 271. Insolvency Services Account: interest

      3. 272. Insolvency Services Accounts

  11. Part 11

    Supplementary

    1. 273. Interpretation

    2. 274. Provision of financial assistance for consumer purposes

    3. 275. Financial provision

    4. 276. Transitional or transitory provision and savings

    5. 277. Power to make consequential amendments etc.

    6. 278. Minor and consequential amendments and repeals

    7. 279. Commencement

    8. 280. Extent

    9. 281. Short title

    1. Schedule 1

      The Office of Fair Trading

    2. Schedule 2

      The Competition Appeal Tribunal

    3. Schedule 3

      The Competition Service

      1. Part 1

        Constitution etc.

      2. Part 2

        Transfers of property etc. between the Commission and the Service

      3. Part 3

        Miscellaneous

    4. Schedule 4

      Tribunal: procedure

      1. Part 1

        General

      2. Part 2

        Tribunal rules

    5. Schedule 5

      Proceedings under Part 1 of the 1998 Act

    6. Schedule 6

      Schedule to be inserted in the Water Industry Act 1991

    7. Schedule 7

      Enforcement regime for public interest and special public interest cases

    8. Schedule 8

      Provision that may be contained in certain enforcement orders

    9. Schedule 9

      Certain amendments of sectoral enactments

      1. Part 1

        Power of enforcement orders to amend licence conditions etc.

      2. Part 2

        Application of Part 4 of this Act to sectoral regulators

    10. Schedule 10

      Procedural requirements for certain enforcement undertakings and orders

    11. Schedule 11

      The Competition Commission

    12. Schedule 12

      Competition Commission: certain procedural rules

    13. Schedule 13

      Listed Directives

      1. Part 1

        Directives

      2. Part 2

        Provisions of directives

    14. Schedule 14

      Specified functions

    15. Schedule 15

      Enactments conferring functions

    16. Schedule 16

      Schedule B1 to Insolvency Act 1986

    17. Schedule 17

      Administration: minor and consequential amendments

    18. Schedule 18

      Schedule 2A to Insolvency Act 1986

    19. Schedule 19

      Duration of bankruptcy: transitional provisions

    20. Schedule 20

      Schedule 4A to Insolvency Act 1986

    21. Schedule 21

      Effect of bankruptcy restrictions order and undertaking

    22. Schedule 22

      Individual voluntary arrangement

    23. Schedule 23

      Individual insolvency: minor and consequential amendments

    24. Schedule 24

      Transitional and transitory provisions and savings

    25. Schedule 25

      Minor and consequential amendments

    26. Schedule 26

      Repeals and revocations

An act to establish and provide for the functions of the Office of Fair Trading, the Competition Appeal Tribunal and the Competition Service; to make provision about mergers and market structures and conduct; to amend the constitution and functions of the Competition Commission; to create an offence for those entering into certain anti-competitive agreements; to provide for the disqualification of directors of companies engaging in certain anti-competitive practices; to make other provision about competition law; to amend the law relating to the protection of the collective interests of consumers; to make further provision about the disclosure of information obtained under competition and consumer legislation; to amend the Insolvency Act 1986 and make other provision about insolvency; and for connected purposes.

[7th November 2002]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part 1 The Office of Fair Trading

Establishment of OFT

1 The Office of Fair Trading

(1) There shall be a body corporate to be known as the Office of Fair Trading (in this Act referred to as “the OFT”).

(2) The functions of the OFT are carried out on behalf of the Crown.

(3) Schedule 1 (which makes further provision about the OFT) has effect.

(4) In managing its affairs the OFT shall have regard, in addition to any relevant general guidance as to the governance of public bodies, to such generally accepted principles of good corporate governance as it is reasonable to regard as applicable to the OFT.

2 The Director General of Fair Trading

(1) The functions of the Director General of Fair Trading (in this Act referred to as “the Director”), and his property, rights and liabilities, are transferred to the OFT.

(2) The office of the Director is abolished.

(3) Any enactment, instrument or other document passed or made before the commencement of subsection (1) which refers to the Director shall have effect, so far as necessary for the purposes of or in consequence of anything being transferred, as if any reference to the Director were a reference to the OFT.

3 Annual plan

(1) The OFT shall, before each financial year, publish a document (the “annual plan”) containing a statement of its main objectives and priorities for the year.

(2) The OFT shall for the purposes of public consultation publish a document containing proposals for its annual plan at least two months before publishing the annual plan for any year.

(3) The OFT shall lay before Parliament a copy of each document published under subsection (2) and each annual plan.

4 Annual and other reports

(1) The OFT shall, as soon as practicable after the end of each financial year, make to the Secretary of State a report (the “annual report”) on its activities and performance during that year.

(2) The annual report for each year shall include—

(a) a general survey of developments in respect of matters relating to the OFT’s functions;

(b) an assessment of the extent to which the OFT’s main objectives and priorities for the year (as set out in the annual plan) have been met;

(c) a summary of the significant decisions, investigations or other activities made or carried out by the OFT during the year;

(d) a summary of the allocation of the OFT’s financial resources to its various activities during the year; and

(e) an assessment of the OFT’s performance and practices in relation to its enforcement functions.

(3) The OFT shall lay a copy of each annual report before Parliament and arrange for the report to be published.

(4) The OFT may—

(a) prepare other reports in respect of matters relating to any of its functions; and

(b) arrange for any such report to be published.

General functions of OFT

5 Acquisition of information etc.

(1) The OFT has the function of obtaining, compiling and keeping under review information about matters relating to the carrying out of its functions.

(2) That function is to be carried out with a view to (among other things) ensuring that the OFT has sufficient information to take informed decisions and to carry out its other functions effectively.

(3) In carrying out that function the OFT may carry out, commission or support (financially or otherwise) research.

6 Provision of information etc. to the public

(1) The OFT has the function of—

(a) making the public aware of the ways in which competition may benefit consumers in, and the economy of, the United Kingdom; and

(b) giving information or advice in respect of matters relating to any of its functions to the public.

(2) In carrying out those functions the OFT may—

(a) publish educational materials or carry out other educational activities; or

(b) support (financially or otherwise) the carrying out by others of such activities or the provision by others of information or advice.

7 Provision of information and advice to Ministers etc.

(1) The OFT has the function of—

(a) making proposals, or

(b) giving other information or advice,

on matters relating to any of its functions to any Minister of the Crown or other public authority (including proposals, information or advice as to any aspect of the law or a proposed