The PSR has new powers to approve and enforce redress schemes under the Competition Act 1998 (CA98) as amended by the Consumer Rights Act 2015 (CRA15).
These new powers are intended to make it easier and quicker for consumers and businesses that have suffered from breaches of competition law to get compensation. These schemes are designed to encourage businesses to resolve disputes voluntarily, instead of through private litigation in the courts.
Why are we publishing this document?
This consultation paper explains our proposed approach to exercising our powers to approve and enforce redress schemes under the Competition Act 1998 (CA98).
We are seeking views on our proposal to adopt the Competition and Markets Authority’s (CMA’s) previously published guidance on the approval of voluntary redress schemes for infringements of competition law.
Who should read this paper?
This consultation is relevant to payment system operators, banks, building societies, other payment service providers (PSPs), infrastructure providers, service – users of UK payment systems (including businesses) trade bodies, consumer groups and other parties interested in UK payments systems.
What is our proposed approach?
We propose to follow the CMA’s approach to the approval of voluntary redress and to adopt their previously published guidance.
However when deciding whether or not to consider a scheme for approval, we would apply our Administrative Priority Framework (APF), instead of the CMA’s Prioritisation Principles as envisaged in the CMA guidance.
What are the next steps?
We would like to receive your feedback on our proposal and welcome your comments by 5.00pm on Wednesday 9 December 2015. You can respond by email to: firstname.lastname@example.org.
We will reflect on the feedback received before finalising the guidance documents and issuing a feedback statement by early next year.