This Practice Note describes the application of the Trading Schemes Act 1996 in the context of franchises. It also considers the Fair Trading Act 1973, the Trading Schemes Regulations, 1997 SI 1997/30 and the Trading Schemes (Exclusion) Regulations 1997, SI 1997/31. The Trading Schemes Act 1996 (TSA 1996) and subsequent regulations made under it, were introduced to regulate pyramid selling schemes because, at the time, the existing legislation contained in the Fair Trading Act 1973 (FTA 1973) was considered to be inadequate. Unfortunately and unintentionally, franchises are potentially regulated by the TSA 1996 because they may be treated as a ‘trading scheme’.
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