Section 138 set out the effect of the Act on the Crown. Measures in the Act and regulations made under it will generally apply to the Crown, barring exceptions for sections 67 and 92 (offences related to the landlord redress scheme and landlord database), and parts of Part 4 Chapter 3. The Crown cannot be prosecuted for offences committed under sections 67 or 92, but it is possible for a financial penalty of up to £40,000 to be imposed on the Crown in lieu of prosecution. The exemption from criminal liability does not extend to persons acting in service of the Crown.
	Subsection (8) provides that measures which amend existing legislation do not bind the Crown unless the legislation being amended also binds the Crown (and in relation to the 1988 Act, this is subject to section 18).
Part 5: General Section 138: Crown application Effect