The Late Payment of Commercial Debts (Amendment) Regulations 2018

Proceedings restraining grossly unfair terms or practices3

1

In this regulation, “representative body” means an organisation established to represent the collective interests of any enterprise, either in general or in a particular sector or area.

2

Paragraph (3) applies where a person acting in the course of a business enters (or intends to enter) as purchaser into a contract to which the Late Payment of Commercial Debts (Interest) Act 19985 applies.

3

On the application of a representative body, the High Court may grant an injunction on such terms as it thinks fit restraining the person from relying on a term in the contract, or engaging in a practice in relation to the contract, where that term or practice relates to—

a

the date or period for payment of a debt;

b

the right to interest for late payment of a debt; or

c

compensation arising out of late payment of a debt;

and in all the circumstances of the case that term or practice appears to the High Court to be grossly unfair.

Review6

1

Before 26th February 2022, and subsequently at intervals not exceeding five years, the Secretary of State must—

a

carry out a review of regulation 3;

b

set out the conclusions of the review in a report; and

c

publish the report.

2

In carrying out the review the Secretary of State must, so far as is reasonable, have regard to how Article 7(5) of Directive 2011/7/EU of the European Parliament and of the Council of 16th February 2011 on combating late payment in commercial transactions6 is implemented in other member States.

3

The report must in particular—

a

set out the objectives intended to be achieved by regulation 3;

b

assess the extent to which those objectives are achieved; and

c

assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation.