Part 4: Consumer rights and disputes Prohibition of unfair commercial practices Section 225: Prohibition of unfair commercial practices
This section sets a general prohibition on unfair commercial practices.
	Subsection (2) prohibits any person who is responsible for the content of a code of conduct or for monitoring compliance with a code of conduct from promoting unfair commercial practices through the content of that code or in connection with that code. A code of conduct under Section 249 means an agreement or set of rules that define the behaviour of traders who agree to be bound by it. This includes codes of conduct relating to specific trades or industries.
	Subsection (3) defines "commercial practice", "consumer" and "trader" for the purposes of this Chapter.
	The definition of a commercial practice is broad and far reaching. A commercial practice can be derived from a single act or omission, depending on the relevant circumstances, as well as from repeated behaviour and a course of conduct (R v X Ltd [2013] EWCA Crim 818, at paragraph 22, Warwickshire County Council v Halfords Autocentres Ltd [2018] EWHC 3007 (admin), at paragraph 28). Subsection (3), paragraph (b) of the definition of commercial practice makes it clear that a commercial practice includes acts or omissions by a trader relating to a third party trader’s goods, services or digital content. Subsection (3), paragraph (c) of the definition of commercial practice establishes that an act or omission by a trader that enables private individuals (i.e. consumers) to sell products to that trader or another person are included in the definition of commercial practice. Subsection (5) makes it clear that a commercial practice includes acts or omissions which take place before, during or after promotion or supply. For example, the acts or omissions of a debt collection agency who acquires claims derived from consumer credit agreements with consumers and seeks to recover these debts some considerable time after the original consumer credit agreements were concluded can amount to a commercial practice. An act or omission need not relate to a promotion or supply to or from consumers which actually occurs, in order to amount to a commercial practice. This concept is concerned with systems rather than individual transactions between a consumer and a business. (Warwickshire County Council v Halfords Autocentres Ltd [2018] EWHC 3007 (admin), at paragraph 29).
	The definition of "consumer" makes it clear that a consumer must be an individual (i.e. a natural person) and so excludes body corporates. The individual must be acting for purposes wholly or mainly outside of their business. It is irrelevant whether the individual is supplying, or receiving, a good, service, or digital content. The words "wholly or mainly" make it clear that:
The individual is still a consumer when acting for dual purposes (a consumer purpose and a business purpose) as long as the consumer purpose is the main purpose. This means, for example, that a person who buys a kettle for their home, works from home one day a week and uses it on the days when working from home would still be a consumer. An individual who occasionally sells their unwanted and used clothes on eBay is also likely to be a consumer. Conversely, a sole trader who operates from a private dwelling and buys a printer of which 95% of the intended use is for the purposes of their business, is unlikely to be a consumer.
An individual who supplies goods or services for mainly non-business purposes to a person who receives them for business purposes will still be a consumer. For example, an individual who sells their personal vinyl record collection to a second-hand record shop is likely to be a consumer.
Further, an individual who acts for the purpose of a future business, which is not yet up and running, is likely to be a consumer. For example, an individual who participates in training to gain skills or a qualification with a view to supply products for business purposes in the future is likely a consumer.
	Subsection 3, paragraph (a) of the definition of trader states that any person who is acting for purposes relating to their business is a trader.
	Subsection 3, paragraph (b) of the definition of trader says that a person (for example, an agent, subcontractor or representative) acting in the name of, or on behalf of, another person, for purposes relating to that other person’s business, is also considered a trader for the purposes of this chapter. It is irrelevant whether a person acting in the name of, or on behalf of, another is also acting for their own business in relation to the same act or omission.
	Subsection (4) provides that for the purposes of the prohibition in subsection (1), unfair practices are commercial practices that are likely to cause the average consumer to take a transactional decision they would not have taken otherwise as a result of misleading actions, misleading omissions, aggressive practices, or a contravention of the requirements of professional diligence; that omit material information from an invitation to purchase; and commercial practices specified in Schedule 20. Commercial practices specified in Schedule 20 are considered unfair practices in all circumstances.