Legal News

Competition & Markets Authority loses consumer redress test case

Published on: 27 July 2021
Published by: LexisPSL
  • Competition & Markets Authority loses consumer redress test case
  • What are the practical implications of this case?
  • What was the background?
  • The issues in dispute
  • What did the court decide?
  • The ‘average consumer’
  • Unfair terms
  • Unfair commercial practices
  • When is a ‘transactional decision’ taken?
  • High Court proceedings—Civil Procedure Rules (CPR), Part 8 or Part 7?
  • More...

Article summary

Commercial analysis: The High Court has handed down a judgment in the test case between Care UK and the Competition & Markets Authority (CMA), in which all of the CMA’s claims were dismissed in relation to the administration fee charged by Care UK when admitting self-funded residents into care homes. The CMA had opened cases against a number of care home providers and argued that charging an administration fee was an unfair term according to the Unfair Terms in Consumer Contracts Regulations 1999, SI 1999/2083 (UTCCR 1999) and Consumer Rights Act 2015 (CRA 2015). The CMA also claimed charging the fee amounted to unfair commercial practices as set out in the Consumer Protection from Unfair Trading Regulations 2008, SI 2008/1277 (CPUTR 2008). The decision clarifies the law on areas of consumer redress and adopts a narrow approach on what decisions amount to a ‘transactional decision’, which impacts the enforcement actions of the CMA and Local Authority Trading Standards. Written by Tom Dane, partner, Tim Sales, partner, Jonathan Carter-Lewis, associate, and Ross Blackhall, associate, at CMS. or take a trial to read the full analysis.

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