Consumer Rights Act 2022

Convicted traders liable to compensate consumers for loss or damage

146. (1) If a trader is convicted of an offence under this Act, the relevant authority that brought the proceedings in which the trader was convicted may, on behalf of an aggrieved consumer who consents to the application, apply to the court for an order (a “compensation order”) requiring the trader (the “trader concerned”) to pay an amount of money the court considers appropriate compensation in respect of any loss or damage to that consumer resulting from that offence.

(2) A compensation order may be instead of or in addition to any fine or penalty the court may impose on the trader concerned.

(3) The compensation payable under a compensation order—

(a) shall be of such amount as the court considers appropriate (though not exceeding the amount set by law as the limit of the court’s jurisdiction in tort), having regard to any evidence and to any submissions made by or on behalf of the trader concerned, the aggrieved consumer, the relevant authority or, where the relevant authority is not the prosecutor, the prosecutor, and

(b) shall not exceed the amount of the damages that, in the opinion of the court, the aggrieved consumer would be entitled to recover in an action under section 34 or, as the case may be, section 73 or 95 in respect of the same failure to comply with a requirement of this Act.

(4) An application shall not be made under subsection (1) if the aggrieved consumer has brought an action under section 34 or, as the case may be, section 73 or 95 against the trader concerned and the action is in respect of the same failure to comply with a requirement of this Act for which the trader concerned is convicted.

(5) If the amount of compensation payable under a compensation order is paid to the aggrieved consumer under this section and the consumer subsequently commences an action under section 34 or, as the case may be, section 73 or 95 and is awarded damages by the court in respect of the same failure to comply with a requirement of this Act, the compensation order is deemed to be in satisfaction of so much of the awarded damages as is equal to the first-mentioned amount.

(6) If the trader concerned does not comply with a compensation order—

(a) within the time ordered by the court, or

(b) within 30 days after the order is made, if no time is specified in the order,

the aggrieved consumer may enter judgment in the District Court or, as appropriate, the Circuit Court by filing the order with that court in the District Court district or, as appropriate, the circuit where the conviction was entered.

(7) A judgment entered in the District Court or the Circuit Court under subsection (6) is enforceable against the trader concerned in the same manner as if it were a judgment rendered in that court in civil proceedings.