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
Recent data reports that the financial cost of clinical negligence claims runs to a total of £83bn, but what is the real cost of clinical negligence?
Would you know how to manage an escalating social media storm? Are you confident in your plans and policies for responding to, and managing, a prominent ‘scandal’ in your charity?
The Civil Partnership (Opposite-Sex Couples) Regulations 2019 were made on 5 November 2019 and came into force on 2 December 2019.
HMRC’s approach to underpayment of the National Minimum Wage (NMW) is getting tougher and shows no sign of abating.
HMRC’s approach to underpayment of the National Minimum Wage (NMW) is getting tougher and shows no sign of abating.
Now 2020 is here and we have welcomed in the new decade, it’s time to welcome in changes regards the contents of employee’s statement of particulars.
In December 2019, the Care Quality Commission brought its first prosecution against a local authority
The CIL was introduced under the Planning Act 2008 and the CIL Regulations 2010, which came into force in April 2010. CIL is a non-negotiable tax charged by local authorities on new developments.
The Court of Appeal’s recent decision is likely to be unwelcome news for any cash-strapped councils seeking to fund the costs of taxi enforcement through licence fees.
It is important that trustees are aware of the law relating to people who are transgender and those who identify as non-binary so that they can ensure compliance.
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.