Chapter 14Consumer protection■Domestic infringements – these are breaches of spe-
cified UK law, listed in delegated legislation, which
are committed in the course of a business and which
harm the collective interests of consumers, e.g. Con-
sumer Credit Act 1974 and Sale of Goods Act 1979.
The EA 2002 identifies three kinds of enforcers:
■general enforcers, e.g. the OFT, Trading Standards
Service and the Department of Enterprise, Trade and
Investment in Northern Ireland;
■enforcers designated by the Secretary of State, e.g.
regulators, such the CAA, ORR, FSA; the Information
Commissioner, Consumers’ Association;
■Community enforcers, which are limited to enforcers
from other EEA states.
The OFT has responsibility for leading enforcement
activity and co-ordinating action by enforcers, to ensure
that only the most appropriate body takes action.
Before seeking an enforcement order, the enforcer
must first consult the OFT (if it is not the enforcer) and
the trader against whom the order may be made with a
view to giving the trader an opportunity to stop the
infringement and avoid the need for court action. At
this stage the enforcer may accept an undertaking from
the trader about his future conduct. After 14 days the
enforcer may apply to the High Court or county court
for an enforcement order. (This period is reduced to
seven days for an interim order where urgent action is
required.) Where proceedings are brought against a
trader the court may:
■Accept an undertaking from a trader about his con-
duct instead of making an enforcement order.
■Make an enforcement order, requiring the trader to
stop and not continue the infringing conduct. The order
also stops the trader from pursuing similar infringing
conduct through other businesses with which he or
she might have a connection, e.g. as a director.
If a trader breaches an enforcement order or an
undertaking given to the court (but not to an enforcer),
the trader will be in contempt of court and can be fined
or imprisoned for a maximum of two years.
The OFT and other general and designated enforcers
which are public bodies with statutory powers have the
right to require information, including documents,
from traders by issuing a written notice. If a trader fails
to comply with a notice, an enforcer can seek a court
order requiring the trader to produce the information.
Licensing of traders under the
Consumer Credit Act 1974
The OFT is responsible for administering the system of
licensing for consumer credit and hire businesses (see
Chapter 13 ). Undesirable traders may be refused a
licence or have their licences withdrawn.Business self-regulation
The OFT is under a statutory duty to encourage relevant
trade associations to prepare and disseminate to their
members codes of practice for guidance in safeguarding
and promoting the interests of consumers in the UK.
The aim of such codes is to enable a particular industry
to try to regulate the practices of its members. The
advantages of voluntary codes of practice are as follows:
■codes can deal with matters which it would be difficult
to deal with by means of legislation, e.g. availability of
spare parts;
■codes may be able to go further than the existing law or
improve upon legal remedies, e.g. the Code of Practice
for the Motor Industry provides that copies of informa-
tion provided by previous owners of a car concerning
its history should be passed on to the new owner;
■any change in trading practices can be dealt with
quickly by the association, whereas changing the law
to deal with an undesirable trade practice may take a
long time;
■codes encourage an industry to put its own house in
order; complaints may be dealt with within the spirit
of the code rather than according to the letter of the
law; and the code may even explain legal require-
ments to its members;
■codes are developed for a particular trade or industry
and can, therefore, deal with the problems which are
specific to the industry;
■disputes can be dealt with in a less formal way, e.g. by
conciliation;
■most codes provide for arbitration in the event of a
dispute; arbitration may be preferable to bringing a
case through the courts.
Although codes of practice have a number of advant-
ages, there are some significant drawbacks to self-
regulation. They are:
■not all traders are members of the trade associations
and subject to their rules and codes of practice;