ContractStore Legal Business Blog

The OFT (Office of Fair Trading) has published a new quick guide for businesses on how to comply with competition and consumer laws.

The updated, comprehensive guide is aimed particularly at smaller businesses but is relevant to firms of all sizes. It includes advice on what constitutes illegal cartel activity, what rules apply when selling at a distance, and how to ensure contracts are not unfair. It also highlights recent changes to the law, including:
* misleading business practices that are now prohibited under the Consumer Protection Regulations,
* new rules on advertising to other businesses, where the advert identifies a competitor or a competitor’s product,
* amendments to the Estate Agents Act, which mean that all agents who sell properties in the UK are required to join an approved redress scheme, and
* new licensing requirements for sections of the credit consumer industry and Consumer Credit (Advertisement) Regulations.

Download a copy of ‘A quick guide to competition and consumer protection laws that affect your business’ from http://www.oft.gov.uk/businesses.

Copies are also from the OFT publications line on 0800 389 3158.

From next month, internet shoppers will no longer have to pay customs duty on non-EU purchases worth up to £105.

Customs duty is currently payable on goods bought online from non-EU countries worth £18 (Euro 22) or more. But from 1 December, the new £105 (Euro 150) limit will apply. VAT will still be charged on goods over £18, and is not affected by the changes.

A new HMRC ‘internet shopping’ podcast, launched today, explains the changes in more detail. As well as duty and VAT, the podcast discusses handling fees, which mail carriers are entitled to charge and collect from you on delivery, where duty or VAT is payable.

HMRC’s Director of Customs & International, Doug Tweddle, said:

“Whether you’re looking to get your hands on the latest computer game, designer clothes or DVDs, it’s important to be aware of the law on customs charges, especially as this is about to change.

“If you’re thinking of doing a little web shopping from abroad, download our podcast or visit the HMRC website and get up-to-speed with all things online - it won’t cost you a penny.

The podcast is available to download free from http://www.hmrc.gov.uk/podcasts.

There is to be a fundamental review  of the costs of civil litigation.  Lord Justice Rupert Jackson has been appointed to head the review which begins in January, with a report scheduled for issue in December next year.

There is concern in  Government and legal circles that legal costs are too high and the English courts are losing out to other jurisdictions.  A number of high profile cases in recent years have seen some very high fees - e.g £5.2 million for the fees of one City law firm in a 5 day case involving Blackberry earlier this year, and more than £100 million in the ten years of litigation involving the creditors of failed bank, BCCI.

Legal fees in the City of London are matched in extravagance only by those in New York, so it is hardly surprising that there is a certain amount of “forum shopping” for commercial litigation whenever this is feasible.

Under English law the winning side almost invariably gets costs awarded in its favour and, while this usually means only about 70 per cent of the fees are in fact recovered, it also means that those with deep pockets can use the court system to threaten smaller companies or individuals and access to justice is in danger of becoming the prerogative of the rich.  In other countries, the claimant may have to bear his own costs.

Jackson LJ will be assisted in the review by a small group of experts.

Whether City law firms will reduce their fees in the coming recession remains to be seen - in recent years hourly rates  have been rising at way above the rate of inflation.  But there is some retrenchment - the Financial Times reports today that at least one City firm is cutting costs  - by cancelling its firm-wide Christmas party for the staff!