Enterprise Act 2002 - Office of Fair Trading guidance

The Office of Fair Trading (OFT) is responsible for applying and enforcing the competition and consumer measures introduced in the Enterprise Act 2002 alongside the Competition Commission, the sectoral regulators, the Competition Appeal Tribunal, Trading Standards Departments and others.

The OFT has published a guide to the principal provisions in the Act. 

What does the 2002 Act do?
 
The 2002 Act removes the right of floating charge holders to appoint an administrative receiver in the event of the insolvency of a company or an Industrial and Provident Society (I & P), creating instead a strengthened system of administration. Following intervention by the CML, a carve-out was created allowing lenders to Registered Social Landlords (RSLs) to continue to appoint an Administrative receiver in respect of companies or an LPA Receiver in respect of I & Ps.
 
The Act also reforms the law of personal bankruptcy including shortening the bankruptcy period so that most individuals will be discharged not more than twelve months after commencement.

The OFT's guide to the principal provisions in the Act explains:

• The purpose and structure of the Enterprise Act.
• The structure of the OFT, its functions and core duties.
• How the merger control regime will work.
• The system of market investigation references to the Competition Commission.
• The additional criminal offences for individuals dishonestly engaged in hard-core cartels and the OFT's powers of investigation in connection with cartels.
• Powers to apply to court for orders disqualifying directors of companies which have breached competition law.
• How designated consumer bodies can make "super-complaints" to the OFT about markets which may not be working well for consumers.
• Procedures for enforcing consumer legislation, extending the Stop Now Orders Regulations (SI 2001 No 1422) and replacing Part III of the Fair Trading Act 1973.
• The OFT's role in approving and promoting consumer codes of practice.
• Requirements for safeguarding information about individuals or businesses which the OFT had gathered in the course of its work.

Stronger mechanisms of accountability, including rights of appeal to the Competition Appeal Tribunal.