Part 6: Miscellaneous Food and Drink Schedule 18: Advertising of less healthy food and drink Part 2: Online Services: Prohibition 368Z16 Financial penalties
Subsection (1) outlines the financial penalty imposed on a person is as the appropriate regulatory authority determines to be appropriate and proportionate to the scale of the breach. The maximum penalty on a relevant business is such amount not exceeding the greater of 5% of the turnover of the relevant business for the relevant period or £250,000. In any other case it is £250,000.
	Subsection (3) confirms that a person’s "relevant business" is any business carried on by the person which involves or is associated with the manufacture or sale of less healthy food or drink. "Relevant period", means the period of one year ending the 31 March before the time at which the penalty is imposed. However in the case that the person has been carrying on that business for less than a year the relevant period is the time during which the business has been carried on, and if a business has ceased to operate when the penalty is imposed, then the relevant period is one year ending with the time the business ceased to operate. This subsection also outlines that the turnover of a relevant business should be calculated in accordance with UK accounting practices. If the relevant business consists of two or more undertakings, then the turnover for each is combined.
	Subsection (4) confirms that to determine the applicable financial penalty under subsection (1) the appropriate regulatory authority must have regard to statements published by OFCOM under section 392 of the Communications Act 2003 (the guidelines to be followed in determining the amount of penalties).
	Subsection (5) outlines that the financial penalty imposed under this section, if not paid within the relevant period, can be recoverable by the appropriate regulatory authority as a debt from the person obliged to pay it. Subsection (6) details that if a financial penalty is imposed under this section that has a connection with Northern Ireland and no connection with the rest of the United Kingdom, the penalty must be paid into the Consolidated Fund of Northern Ireland, but in any other case, a financial penalty imposed under this section is to be paid into the Consolidated Fund of the United Kingdom as described in subsection (7).