The Fair Player

The Fair Play Charter is operated by Bury, Manchester, Oldham, St Helens, Salford, Stockport, Tameside and Wigan Councils

Issue 19, November 2008

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Regulatory Enforcement and Sanctions Act 2008 

This new piece of legislation is part of the government’s commitment to improve the work done by regulators.

The Act creates a new body, the Local Better Regulation Office, that will provide expert advice for central government on the way that local authorities regulate and help ensure more consistent, risk-based, application of regulation for businesses.

Primary authority principle

The new primary authority principle is an opportunity for a business to work with an authority and protect their business. A primary authority is a local authority which has responsibility for a particular business or organisation. The authority will be responsible for giving advice to businesses/organisations on how they comply and exercise enforcement procedures. Any business that has an agreement with a primary authority will be expected to work closely with that authority to ensure compliance with all relevant regulations. There will be a duty on all other local authorities to consult with the primary authority before taking enforcement action. The primary authority scheme comes into force in April 2009.

What does this mean for my business?

The new act, aims to get businesses to comply by providing alternative penalties rather than imposing an additional form of punishment. The legislation is aimed at making regulators more transparent, to businesses and the general public. Businesses that do not comply will end up paying more direct costs as a result of sanctions applied to them, but most businesses will benefit from the alternative sanctions rather than the cost of criminal prosecutions.

The Regulatory Enforcement and Sanctions Act is being promoted by the government as the means to quicker treatment for those in breach of the relevant legislative requirements.

New members

We would like to welcome the following new members.

Car to Car Limited
70 Bradford Rd, Monton, Salford, M30 9FT
Phone: 0800 043 1957

Alan Bracken Limited
61 Eccleston Street, St Helens, WA10 2PF
Phone: 01744 26289

New Road Garage
28-30 New Road, Eccleston Park,
Merseyside, L34 6JT
Phone: 0151 430 9412

Bulls Head Garage
Sutton Road, St Helens, Merseyside, WA9 3DJ
Phone: 01744 24848

Mastertech Assist Ltd
Independent Mercedes Benz Specialist
Unit 3, Albert Street, Droylsden, M34 7BA
Phone: 0161 301 2030

Guide Bridge MOT and Service Centre
Unit 5, Guide Bridge Trading Estate
South Street, Ashton-under-Lyne, OL7 0HU
Phone: 0161 339 5354

More news

Changes to consumer credit licensing regime

The Office of Fair Trading welcomes the introduction of significant changes to the consumer credit regime. The reforms introduced by the Consumer Credit Act 2006 will allow the OFT to operate a more focused and flexible regime to protect consumers.

The changes allow the OFT to focus its resources on businesses engaged in credit activities which, by their nature, pose a high risk to consumers, and to adopt a more flexible approach to regulation than the previous one-size-fits-all system allowed. The reforms give the OFT a wider range of enforcement powers and sanctions to help bring about improvement in a licensee's conduct when it causes concern. At present the OFT can only refuse or revoke a credit licence.

Changes to the regime include the following.

• Indefinite standard licences become the norm for most licences holders.
• The fitness test being extended to give the OFT the power to assess whether a business has the necessary competence to provide consumer credit products and services. This enables the OFT to take account of likely future behaviour as well as any past misconduct.
• Identifying irresponsible lending as an unfair business practice.
• Introducing powers for the OFT to impose requirements on licensees where it is dissatisfied with any aspect of their business.
• The OFT given the ability to impose financial penalties of up to £50,000 where a requirement has not been complied with.
• The OFT given enhanced information gathering powers.

The Cancellation of Contracts Made in a Consumers Home or Places of Work etc,
Regulations 2008

These new regulations are aimed at traders who enter into a contract with a consumer at their home or workplace. They also cover contracts made at another individual’s home or with traders away from business premises. The regulations extend the existing law on cooling off periods and cancellation rights for consumers. They will cover contracts that are made both during solicited and unsolicited visits by traders.

The regulations will apply to all contracts with a total payment of more than £35 and they will set the cooling off period to a minimum of seven calendar days. The regulations also require cancellation rights to be clearly and prominently displayed in any written contract, or provided in writing if there is no written contract.

A good reliable runner!

A car dealer who sold a car which was orally described as a 'good reliable runner' and described in an advertisement as in 'excellent condition' was fined over £4,500 after pleading guilty to offences under the Trade Descriptions Act 1968.

After a very short time the car suffered several faults and the complainant asked for his money back. The car dealer refused to issue a refund. Trading Standards had the vehicle examined where it was found the vehicle was not of satisfactory quality and neither a 'good reliable runner' or to be in 'excellent condition'.