The Digital Markets, Competition and Consumers Act 2024 and Consumer Rights Act 2015 (Turnover and Control) Regulations 2024

5 Determination of turnover and daily turnover for the purposes of Part 3 of the 2024 Act (enforcement of consumer protection law)

(1) This regulation applies for the purposes of determining the turnover or the turnover and daily turnover (as the case may be) of a person for the purposes of the following sections in Part 3 of the 2024 Act (enforcement of consumer protection law)— (a) section 158(5) (enforcement orders: requirement to pay monetary penalty); (b) section 168(3) (monetary penalties under sections 166 and 167: amount); (c) section 182(6) (final infringement notice); (d) section 190(3) (monetary penalties under section 189: amount); (e) section 193(3) (monetary penalties under section 192: amount); (f) section 198(4) (final false information enforcement notice). (2) Subject to paragraphs (3) to (6), the turnover of a person is its turnover in— (a) the last accounting period to end before the relevant date (its “relevant accounting period”), or (b) if the person has no accounting period that ends before the relevant date, the period beginning with the day on which the activities of the person began to be carried on and ending with the last day of the month preceding the month in which the relevant date falls. (3) If the CMA or, as the case may be, the court estimates on the relevant date that the turnover of the person in the accounting period immediately preceding its relevant accounting period (the “preceding accounting period”) was higher than the turnover of the person in its relevant accounting period, the turnover is its turnover in the preceding accounting period. (4) If the figures necessary to calculate turnover of the person in its relevant accounting period are not available to the CMA or, as the case may be, the court on the relevant date, the turnover is (subject to paragraph (5)) its turnover in— (a) the preceding accounting period, or (b) if the person has no preceding accounting period, the period beginning with the day on which the activities of the person began to be carried on and ending with the day immediately preceding the date on which its relevant accounting period began. (5) If the figures necessary to calculate the turnover of the person under paragraph (4)(a) or (b) are not available to the CMA or, as the case may be, the court on the relevant date, the turnover of the person is its turnover in the period beginning with the day after the last day of its relevant accounting period and ending with the last day of the month preceding the month in which the relevant date falls. (6) Where the period by reference to which turnover is calculated does not equal 12 months, the turnover of the person is the turnover in that period divided by the number of days in that period and multiplied by 365 or, if the period includes 29th February, 366. (7) The daily turnover of the person is the turnover divided by 365 or, if the period by reference to which turnover is calculated includes 29th February, 366. (8) For the purposes of this regulation— (a) an “accounting period” of a person is a period of more than six months in respect of which accounts are prepared or required to be prepared in relation to the person; (b) the “relevant date” means— (i) in the case of a monetary penalty imposed under section 158(2) of the 2024 Act (enforcement orders: requirement to pay monetary penalty), the date on which the enforcer made the original application to the court under section 153(1) of that Act (applications for an enforcement order or interim enforcement order); (ii) in the case of a monetary penalty imposed under section 166(5)(b) of the 2024 Act (consumer protection orders or undertakings to court: further proceedings), the date on which the enforcer made the application to the court under section 166(3) of that Act; (iii) in the case of a monetary penalty imposed under section 167(4)(b) of the 2024 Act (undertakings to public designated enforcers: further proceedings), the date on which the enforcer applies to the court in respect of a failure to comply with an undertaking under section 167(2) of that Act; (iv) in the case of a monetary penalty imposed under section 182(4)(b) of the 2024 Act (final infringement notice), the date on which the CMA gave to the respondent a notice under section 181(3) of that Act (provisional infringement notice); (v) in the case of a monetary penalty imposed under section 189(3)(b) of the 2024 Act (final breach of undertakings enforcement notice), the date on which the CMA gave to the respondent a notice under section 188(2) of that Act (provisional breach of undertakings enforcement notice); (vi) in the case of a monetary penalty imposed under section 192(3) of the 2024 Act (final breach of directions enforcement notice), the date on which the CMA gave to the respondent a notice under section 191(2) of that Act (provisional breach of directions enforcement notice); (vii) in the case of a monetary penalty imposed under section 198(3) of the 2024 Act (final false information enforcement notice), the date on which the CMA gave to the respondent a notice under section 197(2) of that Act (provisional false information enforcement notice); (c) the provisions of Schedule 3 apply in the determination of turnover.