The Deregulation (Restrictive Trade Practices Act 1976) (Amendment) (Variation of Exempt Agreements) Order 1996

Explanatory Note

(This note is not part of the Order)

This Order is made under the Deregulation and Contracting Out Act 1994 which allows statutory provisions to be amended, without removing any necessary protection, in order to reduce burdens affecting persons carrying on business.

This Order amends the Restrictive Trade Practices Act 1976 which requires that restrictive agreements between two or more persons carrying on business in the United Kingdom in the production or supply of goods or supply of services be furnished to the Director General of Fair Trading for registration. This Order changes the procedure for dealing with variations of agreements which are exempt from registration by virtue of orders made under section 29 or 30 of the 1976 Act. At present, if variations are not approved by a further order before they are made, the original order made under section 29 or 30 ceases to have effect and the agreement becomes subject to registration.

This Order replaces the existing provisions with a power for the Secretary of State (or, in the case of section 30 orders made by him the Minister of Agriculture, Fisheries and Food) to revoke the section 29 or 30 order if he considers the agreement as varied should not continue to be exempt from registration. The Order also provides that if variations are not notified within 21 days to the Secretary of State (or, where appropriate, the Minister of Agriculture, Fisheries and Food) the section 29 or 30 order will cease to have effect. It also makes a number of consequential amendments.