Saturday 24 August 2024

Back to School – CMA Blog on School Uniform Policy and Competition Law

 


As the summer holidays draw to a close, and due to ongoing affordability concerns, the Competition and Markets Authority (CMA) has published a blog on whether school uniform policies might be at risk of breaching competition law.

This is not the first time that the UK competition authorities have been concerned about competition law and school uniform policy. Particular concerns have been raised about exclusive supply arrangements with uniform suppliers.

In 2015, the CMA wrote to schools and suppliers to remind them about their obligations under competition law.

The CMA is urging school leaders to consider whether their uniform policy is in the best interest of pupils and parents.  The CMA provides a number of suggestions: 

1.        Schools and their governing bodies and academy trusts should consider how to use competitive tender processes to get the best results when awarding contracts.

2.        If a contract has been awarded to a manufacturer for sale through third party retailers, care should be taken that there are no provisions that fix the minimum price that the uniform can be sold at, which could constitute resale price maintenance.

3.        Consideration could be given to how many items of uniform are branded or highly tailored to the school and whether this reduces the number of suppliers who will choose to invest in a stock uniform that can only be sold to a small pool of customers.

4.        Schools give consideration to extending the lifespan of uniform, for example by offering a pre-loved uniform shop.

https://competitionandmarkets.blog.gov.uk/2024/08/23/school-uniforms-is-your-policy-at-risk-of-breaking-the-law/

Tuesday 13 August 2024

Reintroduction of Litigation Funding Agreements (Enforceability) Bill

 

Reintroduction of Litigation Funding Agreements (Enforceability) Bill

The Ministry of Justice has issued a statement in response to a written question regarding whether the government plans to reintroduce the Litigation Funding Agreements (Enforceability) Bill (the Bill) and other related issues.

The statement confirms that the government "will take a more comprehensive view of any legislation to address issues in the round" once the Civil Justice Council (CJC) concludes its report on third party civil litigation funding (anticipated in summer 2025).  

The Bill was originally introduced in the last Parliamentary session but was not completed before Parliament was prorogued on 24 May 2024.

 

If passed, the Bill would have reversed the impact of the Supreme Court's decision in R (PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28.

 

Answering the written question Lord Ponsonby noted that the CJC is considering such issues, plus others, in its review of third party civil litigation funding.

It is understood that the CJC hopes to report in summer 2025.

https://questions-statements.parliament.uk/written-questions/detail/2024-07-29/hl449

Tuesday 6 August 2024

Judgment granting collective proceedings order in claim by Road Haulage Association

 


 

The Competition Appeal Tribunal (CAT) has given judgment in a claim brought by Road Haulage Association Limited (RHA) under section 47B of the Competition Act 1998, to commence a collective action to seek damages from various truck manufacturers. 

The claims follow on from the European Commission's 2016 and 2017 truck cartel decisions.

In June 2022 the CAT preferred the RHA’s opt-in application and rejected a proposed opt-out claim brought by UK Trucks Claim Limited (UKTC).  In July 2023 the Court of Appeal mainly dismissed an appeal against the CAT’s June 2022 judgment.  However, finding a potential conflict of interest between new and used trucks claimants the Court of Appeal remitted the case to the CAT for it to consider whether to grant the collective proceedings order (CPO) on the basis of revised arrangements, in particular relating to separate legal and expert representation.

The CAT first ruled that it was not necessary to make separate provision in the class definition for companies which had been dissolved but might be restored to the register.

The CAT ruled that it would be appropriate for claims for leases, other than the first lease of a new truck, to be included in the used truck sub-class. Those claims are, therefore, subject to a longer run-off period (until 31 January 2015).

The CAT also ruled that the funding arrangements are adequate.

The CAT also concluded that arrangements put in place to separate the claims in relation to new trucks and claims relating to used trucks were adequate. A new company, RHA Used Trucks Ltd (RUTL), has been established to act as the proposed sub-class representative for class members with claims for used trucks. This has appointed separate solicitors, counsel and expert.

The CAT, therefore, decided to authorise RUTL as a sub-class representative and to make a CPO in favour of RHA as the class representative.

Road Haulage Association Limited and RHA Used Trucks Limited v Traton SE and others [2024] CAT 51