Supply of New Cars Order 2000
| Jurisdiction | UK Non-devolved |
| Citation | SI 2000/2088 |
2000 No. 2088
COMPETITION
The Supply of New Cars Order 2000
Made 31th July 2000
Laid before Parliament 1st August 2000
Coming into force 1st September 2000
Whereas the Secretary of State, as required by section 91(2) of the Fair Trading Act 19731(the “Act”), published a notice on 15th June 2000 of his intention to make this Order, and invited written representations to be made to him by 14th July 2000 about the provisions proposed to be contained in it;
And whereas the Secretary of State has considered the representations received;
Now, therefore, the Secretary of State, being the appropriate Minister under section 56 of the said Act, in exercise of the powers conferred on him by sections 56(2) and 90(2), (3), (4) and (7) of, and paragraphs 1, 4, 6, 7, 9, 9A and 12A of Schedule 8 to, the said Act, and for the purpose of remedying or preventing the adverse effects specified in the report of the Competition Commission entitled “New Cars: A report on the supply of new motor cars within the UK”2, hereby makes the following Order:
Citation, commencement and interpretation
1.—(1) This Order may be cited as the Supply of New Cars Order 2000 and shall come into force on 1st September 2000.
(2) In this Order—
“contract hire company” means a person to whom new cars are supplied for hire or lease which are retained in his ownership for a period of at least 6 months;
“dealer” means a person engaged in retailing new cars pursuant to a dealer agreement;
“dealer agreement” means an agreement between a supplier and a dealer governing the terms and conditions of supply of new cars and related matters;
“discount” means (except in article 5):
(a) the difference between the list price and the price paid by a dealer or fleet customer for the supply of a new car expressed as a percentage of the list price; or
(b) where a supplier agrees to supply a new car to a fleet customer indirectly through a dealer the sum of—
(i) the difference between the list price and the price paid by the dealer; and
(ii) any pecuniary inducement given to the fleet customer by the supplier in respect of the supply of the new car less a reasonable allowance in respect of the dealer’s gross margin,
expressed as a percentage of the list price;
“fleet” means 25 or more cars registered as being used by the same person;
“fleet customer” means a person to whom new cars are supplied for a fleet pursuant to a fleet supply agreement but shall not include a dealer or a person carrying on the activities described at paragraphs 14 and 15 of Group 12 of Schedule 8 to the Value Added Tax Act 19943;
“fleet supply agreement” means an agreement between a supplier and a fleet customer relating to the supply of new cars to a fleet customer either directly or indirectly and includes an agreement for a pecuniary inducement to be given to the fleet customer in respect of the indirect supply of new cars through a dealer;
“list price” means the price set and quoted by a supplier. The list price may be pre-tax or post-tax and may be the recommended retail price;
“Member State” means a state which is a contracting party to the Agreement on the European Economic Area signed at Oporto on the 2nd May 1992 as adjusted by the protocol signed at Brussels on the 17th March 1993;
“new car” means a passenger car intended for use on public roads and having three or more road wheels which has not been registered;
“pre-registered car” means a new car which a supplier or dealer has caused to be registered before the terms and conditions of its supply to an end-user have been agreed, but does not include:
(a) a car so registered because its certificate of conformity with a vehicle type approved under the EC Vehicle Type Approval Scheme is about to become invalid; and
(b) a car retained for a period of at least three months; and
“supplier” means a person who manufactures cars for supply within, or imports new cars for supply into, the UK, who had a market share of 1% or more of the total supply of new cars in the UK in the preceding calendar year.
Non-discrimination between fleet customers and dealers
2.—(1) It shall be unlawful for a supplier to discriminate unjustifiably between fleet customers and dealers who purchase new cars outright in respect of discounts given for the supply of the same or similar number of new cars supplied over the same or similar period of time.
(2) In determining whether discrimination is justifiable in any particular case regard shall be had as to whether the value of the terms and conditions agreed with a dealer is broadly similar to the value of fleet supply agreements recently entered into by that supplier, taking into account the nature of the dealer agreement and fleet supply agreements in question and any additional benefits given or agreed which are financed by the supplier.
3. A supplier shall notify his dealers at intervals of not more than 3 months of the terms and conditions, including the discounts available, on which he is prepared to supply a range of volumes of new cars for purchase outright by the dealer.
4. If the Director General of Fair Trading notifies a supplier that he has received a complaint alleging a breach of article 2 or 3...
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