The guidance makes clear how the CMA will decide whether care homes are treating residents and their representatives fairly and addresses many of the issues we have highlighted in our previous briefings (see the bottom of this article for links to these). The CMA has considered the wider process, where providers engage with potential residents and their representatives; from the point of first contact through to how the contractual relationship is managed and what happens when the residents move out or pass away.
The CMA and Trading Standards have a wide variety of powers available to them in situations where they believe that providers are in breach of consumer law. This includes bringing court proceedings to stop infringements, seeking compensation on behalf of residents and, in some cases, bringing criminal prosecutions. In addition, residents may be able to seek damages in the Courts and unfair terms will not be enforceable against them or their representatives.
We have already seen several providers come under scrutiny and agree variations to their contracts (in accordance with the CMA’s instructions):
The CMA continues to scrutinise contracts and take enforcement action. Whilst it is the Courts that ultimately decide whether consumer law has been breached, the guidance sets out the new regulatory landscape for consumer protection in the care sector and provides a clear explanation where investigative action will be taken, or prosecutions brought. Those providers who are in the process of communicating fee reviews to their residents should tread carefully and check whether their contract terms support the changes that are proposed.
We will be running a series of workshops in the new year which are designed to take delegates through the guidance, discuss whether the Courts might take a different approach to the CMA and to share examples of good practice when developing your customer contracts.
The full guidance and summary notes are available here.
If you would like further information regarding this e-briefing, or for any enquiries relating to residential care, please contact Emma Watt.
Previous residential care contracts e-briefings:
Residential care contracts - consumer rights and the cost of charging fees in advance
During the Covid-19 pandemic, much of the focus has been on shoring up existing delivery and, where possible, extending arrangements if it is not possible to re-procure.
The Prime Minister announced on Tuesday 22 September a new range of restrictions to protect us from the Covid crisis, some of which will apply to charities.
Following the end of the possession stay on 21 September, Helen Tucker & Rebecca Sembuuze from our housing litigation team discuss the most recent guidance, priority cases and what to expect in court.
Covid-19 has resulted, on the whole, in a marked co-operation between contracting authorities and their suppliers as everybody focuses on maintaining delivery as far as possible.
Employment Tribunal rules in favour of claimants in minimum wage case – has the interpretation of “working time” changed?
As we enter a recession, we have been here before, and a key question is what did we learn and how can we benefit from that learning?
It is anticipated that as lockdown restrictions ease, and particularly with children and young adults returning to education, cases of meningitis will start to rise.
As we continue to emerge from lockdown measures and deal with local measures and the short and long term economic impact of Covid-19, local authorities will need to re-assess how services will be delivered for years to come.
The Government first announced plans for a shared ownership right to buy in October 2019. At the time the sector raised concerns about the impact the plans would have on housing associations ability to borrow. An election and a pandemic later the Government announced, during the CIH Housing Festival last week, the return of the right to shared ownership as part of its Affordable Homes Programme (AHP).
Two final pieces of the possession jigsaw have been published on 15 September 2020. Mr Justice Knowles’ working group on possession proceedings has issued its guidance on the “overall arrangements” for possession proceedings.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.