Price controls on essential foods: partial business and regulatory impact assessment

Section 4: Additional Enforcement and Compliance considerations

4. Business and Regulator Enforcement and compliance considerations

Given the proposal that a food price cap would require qualifying businesses to sell certain foods at or below a set price, it would be necessary to monitor the goods sold in store and online. The consultation is seeking views on the methods of ensuring compliance and enforcement of any regulatory regime of introducing food price controls. This is because the design and implementation of a food price cap directly impact the complexity of any future enforcement regime and compliance.

The Scottish Government will carefully consider the consultation responses and will continue to explore an appropriate compliance and enforcement regime. At this stage, the consultation includes illustrative provisions intended to support discussion. Compliance and enforcement arrangements will be developed further in light of consultation responses and stakeholder engagement. The final BRIA will provide an update on this based on any final legislation.

As opposed to other food and drink sale regulations, which place responsibility at the point of sale, formal monitoring may be more appropriately managed at a business level, supported by suitable compliance controls and oversight mechanisms. Qualifying businesses would be expected to have e appropriate procedures, training and systems would be in place.

The illustrative draft legislation proposes that Local Authorities would be responsible for enforcement of the core price cap duty and would appoint authorised officers to undertake day-to-day enforcement/monitoring. The principal enforcement tool is proposed to be a compliance notice, issued by authorised officers where they have reasonable grounds to be believe that the qualifying business is failing or has failed to comply with the price cap duty. Failure to comply with a compliance notice would be an offence and a fine may be imposed.

it is also proposed that further detail about the enforcement system would be made using the regulation-making power. This is expected to include: provision of information and keeping of records, the content and form of compliance notices, the powers of authorised officers and any additional offences or penalties in connection with failure to comply with the price cap duty.

The proposed approach is intended to encourage compliance in the first instance rather than immediately create criminal liability for isolated failures. If a qualifying business is found not to be complying with the duty, a compliance notice would be issued, providing an opportunity to rectify the issue before any offence is committed.

The consultation also seeks views on the proportionality of the proposed enforcement approach, including the suitability of local authority enforcement, the proposed offences and penalties, and any burdens that compliance may place on businesses. Consideration will also be given to whether exemptions, transitional arrangements or phased implementation may be appropriate as policy development progresses.

4.1 Commencement Considerations

As policy development is at an early stage, no decisions have been taken regarding implementation timescales for any future food price cap scheme.

Any future scheme would require qualifying businesses to make operational and system changes to support compliance, including potential changes to pricing systems, stock management processes, staff training and internal procedures. The Scottish Government recognises that businesses and regulators may require a lead-in period to prepare for implementation and that practical challenges may arise, particularly during the initial stages of operation.

The consultation seeks views on the practical implications of implementation, including the time required for businesses and regulators to prepare, and whether transitional arrangements or phased implementation would be appropriate. Responses will inform future decisions on commencement arrangements.

The Scottish Government will continue to engage with retailers, local authorities, enforcement bodies and other stakeholders to better understand implementation and reporting requirements and to minimise unnecessary burdens.

The final BRIA will provide a more detailed assessment of implementation arrangements, timescales and associated costs.