osborneclarke.com 0 Ban on excessive payment surcharges Consumer Rights (Payment Surcharges) Regulations 2012 In force 6 April 2013 Implement Article 19 of the EU's CRD (early) Traders can no longer charge consumers fees that exceed "the cost borne by the trader" for the use of that means of payment Relates to all sales or service contracts, or contracts for supply of water, gas, electricity or digital content entered into on or after 6 April 2013 Costs must be "exclusively attributable" to using that particular means of payment Operational costs can only be recovered if they can be separately identified as arising from activities dedicated exclusively to particular payment methods

osborneclarke.com 1 Impact? A charge which does not vary depending on the method of payment is not subject to these Regulations e.g. processing / booking / admin fees. Businesses may increase headline prices: – Transparency for consumers – Competitive pressures Businesses may increase / include "booking fees": Market practice? Competitive pressures Consumer Protection from Unfair Trading Regulations 2008: –Prohibit "unfair commercial practices" of traders which affect the transactional decision-making of consumers by way of misleading actions or omissions

osborneclarke.com 2 Redress Term requiring consumer to pay excess fee is unenforceable Contract is treated as requiring the trader to repay the excess to the consumer Consumers can: – Seek refund of excess charge – Complain to trading standards officers Trading standards can apply for an injunction / enforcement order to secure compliance with the Regulations