Part 3: Enforcement of consumer protection law Chapter 6: Investigatory Powers Schedule 17: Investigatory powers Non-compliance with notice under paragraph 14: power of CMA to give final enforcement notice
Paragraph 16C sets out when and how the CMA may issue a final enforcement notice for non-compliance with an information notice it has given under paragraph 14 of Schedule 5 to the Consumer Rights Act. It can do so only after the end of the period for representations by the recipient on the provisional enforcement notice and after considering such representations (if any) (paragraph 16C, subparagraph (1)).
	The final enforcement notice can impose a requirement to pay a monetary penalty or a requirement to comply with directions that the CMA considers appropriate to secure compliance with the information notice or both (paragraph 16C, subparagraph (2)).
	The CMA can impose a monetary penalty only if the CMA is satisfied that the person lacks a reasonable excuse for the compliance failure (paragraph 16C, subparagraph (3)). This means, for example, that a person will be able to avoid a penalty if they can provide evidence of externally verifiable and unforeseen factors outside the person’s control that resulted in the non-compliance.
	Paragraph 16C, subparagraph (4) covers the nature of the penalty that the CMA may impose. It specifies that the CMA may impose a fixed amount penalty or a penalty calculated by reference to a daily rate, or a combination of both. The CMA has discretion to impose such a monetary penalty as it considers appropriate, subject to the statutory maxima set out in paragraph 16C, subparagraph (5).
	See the explanatory note to paragraph 16A for the policy rationale for providing a penalty of up to the higher of a fixed amount or a percentage of turnover.
	Where the recipient of the information notice has a turnover that can be determined, a fixed amount penalty must not exceed £30,000 or, if higher, 1% of the total value of their turnover. Paragraph 16H concerns calculation of turnover for these purposes. Where the recipient of the notice does not have a turnover, the fixed penalty must not exceed £30,000 (paragraph 16C, subparagraph (5) (a)).
	Where the recipient of the information notice has a turnover that can be determined, a daily penalty must not exceed £15,000 per day or, if higher, 5% of the total value of their daily turnover. Where the recipient of the information notice does not have a turnover, the daily penalty must not exceed £15,000 (paragraph 16C, subparagraph (5)(b)).
	Paragraph 16C, subparagraph (6)(a) means that a daily penalty imposed by the CMA can only begin to accrue after the CMA has given a provisional enforcement notice, i.e. the point when the person is clearly made aware of their failure to comply with the requirements of the notice. A daily penalty stops accruing when the person fulfils the requirements of the notice unless the CMA determines an earlier date (paragraph 16C, subparagraph (6) (b)).
	Paragraph 16C, subparagraph (7) sets out what information must be included in a final enforcement notice that includes a requirement to pay a monetary penalty, including the type, amount and grounds for imposition of the penalty, the process and timing for its payment, and relevant rights to apply to change a payment date or to appeal against the final enforcement notice.
	Paragraph 16C, subparagraph (8) sets out applicable rights for a person to seek an amended payment schedule for a penalty.
	The CMA must have regard to the most recent published statement of policy (at the time of the acts or omissions giving rise to the penalty) detailing the considerations relevant to whether to impose a penalty under this paragraph, and the nature and amount of any such penalty (paragraph 16C, subparagraph (9)).
	The CMA may publish a final enforcement notice it has given under this paragraph in a manner it thinks appropriate, e.g. on its website (paragraph 16C, subparagraph (10)).
	Paragraph 16C, subparagraph (11) applies sections 190 to 195 of the Act to directions given by the CMA in a final enforcement notice under this paragraph.