Unfair Commercial Practices - what you need to know
Related external information
European Commission
The Unfair Commercial Practices Directive
Department for Business, Enterprise and Regulatory Reform
Unfair Commercial Practices Directive
Office of Fair Trading
Consumer Protection from Unfair Trading Regulations
Here we explain our approach to the Consumer Protection from Unfair Trading Regulations 2008 (the CPRs), which came into force on 26 May 2008.
The CPRs implement the Unfair Commercial Practices Directive (UCPD), which the European Parliament and Council adopted on 11 May 2005.
What do the CPRs do?
The CPRs are intended to protect consumer economic interests from unfair business-to-consumer commercial practices. A commercial practice will be unfair if it:
- is not professionally diligent; and
- materially distorts or is likely to materially distort the economic behaviour of the average consumer.
Commercial practices will also be unfair if they are misleading (this includes both acts and omissions) or aggressive. The CPRs contain a list of 31 practices that will always be considered unfair e.g. prize draw scams or certain attempts to dissuade a consumer from making an insurance claim.
Breaches of the CPRs are enforceable through Part 8 of the Enterprise Act 2002 (EA). The Office of Fair Trading (OFT) is the lead enforcer for action taken under Part 8 of the EA. We are a designated enforcer under the EA, along with several other UK enforcement bodies. We and the OFT have signed an agreement setting out our respective responsibilities for enforcing the CPRs in relation to financial products and services.
Our policy and approach
In CP06/19, our Consultation Paper on Reforming Conduct of Business Regulation, we consulted on the approach we wanted to take towards implementing the UCPD for financial services firms. We explained that we did not see the need for additional rules in our Handbook because it already contains principles and rules which have the same effect as the UCPD. In PS07/6, our Policy Statement on Reforming Conduct of Business Regulation, we published the feedback on CP06/19. Respondents broadly supported our proposal for the UCPD.
We will take forward cases under the CPRs where we feel there has been a breach and it is right for us to act, given our risk-based approach and the range of regulatory tools available.
