SCHEDULE 1U.K.Amendments of primary legislation

PART 1U.K.Amendments of Communications Act 2003 coming into force on 21st December 2020

54.  After section 124T M1 insert—U.K.

“Rights of end-users in relation to contract terminationU.K.

124U    Rights of end-users in relation to contract termination

(1) Where an end-user has (whether under an enactment or at common law) the right to terminate a contract for a public electronic communications service before the end of the agreed contract period—

(a)no compensation is to be due by the end-user, except compensation for any retained terminal equipment;

(b)if the end-user chooses to retain terminal equipment to which the contract relates—

(i)the compensation payable for the equipment is not to exceed the amount determined under subsection (2); and

(ii)on payment of the compensation, the provider must lift any conditions restricting the use of the terminal equipment on an electronic communications network of another communications provider.

(2) The maximum amount of compensation is whichever is the lesser of the following—

(a)the remaining part of any fee for the service until the end of the agreed contract period; or

(b)a proportion of the value of the terminal equipment, as agreed at the time of the conclusion of the contract, corresponding to the proportion of the agreed contract period that remains unexpired.

(3) Where the public electronic communications service is a transmission service involving an automated transfer of data and information between devices or software-based applications with limited or no human interaction, subsection (1) does not apply unless the end-user is a qualifying end-user, as defined by section 51(9).

(4) Where the contract referred to in subsection (1) is, or is included in, a bundled contract, subsection (1) applies to all the elements of the bundled contract, unless the end-user—

(a)falls within paragraph (b) or (c) of the definition of “qualifying end-user” in section 51(9); and

(b)has waived the rights conferred by this subsection.

124V    Further rights relating to bundled contracts

(1) Subsection (2) applies where—

(a)an individual, acting for purposes other than those of a business, has entered into a bundled contract;

(b)the individual has (whether under an enactment or at common law) the right to terminate any element of the bundled contract before the end of the agreed contract period because of a lack of conformity with the contract or a failure to supply.

(2) The individual has the right to terminate all elements of the bundled contract.

124W    Enforcement of obligations of providers under sections 124U and 124V

(1) Sections 96A to 96C apply in relation to a contravention by the provider of a public electronic communications service of the requirements imposed on the provider by sections 124U and 124V as they apply in relation to a contravention of a condition set under section 45, other than an SMP apparatus condition, but with the following modifications.

(2) Section 96A(2)(f) and (g) (OFCOM directions) do not apply.

(3) Section 96A(5) to (7) (action under the Competition Act 1998) do not apply.

(4) The amount of a penalty imposed under sections 96A to 96C, as applied by this section, other than a penalty falling within section 96B(4), is to be such amount not exceeding £2 million as OFCOM determine to be—

(a)appropriate; and

(b)proportionate to the contravention in respect of which it is imposed.”.