"All change please!" - Sweeping new UK legislation on unfair commercial practices comes into force on 26 May 2008

• Criminal liability for unfair business-to-consumer ('B2C') commercial practices and misleading business-to-busines ('B2B') advertising
• Maximum penalty of two years imprisonment and an unlimited fine

The Consumer Protection from Unfair Trading Regulations 2008 (SI 2008/1277)

The Business Protection from Misleading Marketing Regulations 2008 (SI 2008/1276)

After 26 May 2008, traders face criminal sanctions if they engage in unfair commercial practices towards consumers or misleading advertising towards other businesses.  The maximum sentence is an unlimited fine and/or two years imprisonment.  Directors and others involved can be found guilty. 

Who does this apply to?

All traders and businesses (including online).  It can apply to traders who are not based in the UK. 

What does the new consumer protection law say?

All unfair commercial B2C practices are prohibited.  There are 5 provisions:

1. The general prohibition against practices that contravene the requirements of professional diligence and are likely to distort the economic behaviour of the average consumer;
2. Misleading actions;
3. Misleading omissions;
4. Aggressive practices;
5. The 31 blacklisted practices (one of which may catch certain look-alike products).

What does the new business protection law say?

Misleading B2B advertising is prohibited.  Comparative B2B advertising that does not satisfy certain conditions is also prohibited. 

How can I reduce my risk?

Appropriate training and internal procedures should minimise the risk of a breach. 

If you would like to find out more details about the new law and minimising risks, please open the PDF.

Alternatively, you can contact your usual Taylor Wessing contact or Timothy Pinto by email or telephone +44 (0)20 7300 7000.