The new law largely replaces the Fair Trading Act of 1973 and will come into force in spring 2003. Its main competition measures are:
The introduction of criminal sanctions with a maximum penalty of five years in prison for individuals who operate what the DTI calls "hardcore cartels" – being agreements to fix prices, share markets, limit production and rig bids; and
New procedures to make it easier for individuals to bring damages for losses suffered due to anti-competitive behaviour. Consumer bodies will also be able to make claims on behalf of individuals who have suffered.
The Enterprise Act also extends the Stop Now Orders regime to protect consumers from traders who do not meet their legal obligations (e.g. those failing to carry out a service to a reasonable standard).
The Act authorises the Office of Fair Trading (OFT) to give formal approval to codes of practice, to help consumers identify businesses they can trust. Consumer bodies will be able to make "super-complaints" to the OFT about features of a market which are harming consumers. The OFT will be required to respond within 90 days.
The Act also provides for insolvency reforms such as restricting the use of administrative receivership and shifting the balance in favour of administration to make it quicker and simpler, removing the need for a court hearing in most cases.
The implementation of the Act's measures is subject to commencement orders. Consumer-related provisions and associated secondary legislation will be implemented in summer 2003.
The Act has not yet been published, but more information can be found at:
www.dti.gov.uk/enterpriseact/