The Provision of Services Regulations 2009

The Provision of Services Regulations 2009 (the Regulations) came into force on 28 December 2009. The Regulations implemented the EU Services Directive (2006/123/EC) in the UK and are aimed at reducing and simplifying red tape in EU Member States in order to facilitate increased provision of cross-border services within the EU.

Is your Business Affected?

The Regulations apply to service providers generally, whether business to business or business to consumer. However, certain service providers are exempt, including financial services, electronic communications, transport, healthcare, temporary work agencies, audiovisual services and gambling.

Summary of Service Provider Obligations

Under the Regulations, any service provider doing business in the UK must:
• Supply certain information to its customers; and
• Respond to customer complaints as quickly as possible and use its best efforts to find a satisfactory solution to such complaints.
No service provider doing business in the UK which is based in either the UK or another state in the European Economic Area may discriminate in its general terms and conditions of business against customers on the grounds of nationality or place of residence unless such discrimination can be objectively justified.

Consequences of Non-Compliance

The Office of Fair Trading and various other consumer bodies are able to take action against service providers in breach of the Regulations where the breach harms the collective interests of consumers. However, businesses and individual consumers are left to seek redress for any non-compliance on their own initiative through the courts.

Practical Implications

To some extent, the obligations imposed by the Regulations are duplicative of, and may even conflict with, existing legislation. For example, the Companies Act 2006 already requires companies and other businesses to supply certain information on stationery etc and regulations impose further obligations on service providers dong business online. Where there is an actual conflict with existing legislation, that legislation takes precedence. However, Guidance issued by the Department of Business, Innovation and Skills advises that businesses should err on the side of caution and endeavour to comply with both obligations so far as it is possible to do so.
If you would like to know more, please contact David Dees or Nick Crook.

Filed: 12/08/2010 12:00:58