Following a failed attempt to injunct the CMA from naming the business, the CMA has published a Final Enforcement Notice against Euro Car Parks Ltd imposing a fixed penalty fine of £473,000; the first under their increased enforcement powers.
Background
On 25 July 2025, the CMA issued an Information Notice to Euro Car Parks Ltd (the Company) requesting certain information from the Company to assist the CMA in determining whether to exercise their consumer protection powers under the Digital Markets, Competition and Consumer Act 2024. The Information Notice was served on the Company by way of tracked post, addressed to one of the Company directors, at the registered office address and hand-delivered by CMA staff to a member of the Company at the registered office address. It was a requirement of the Information Notice that the Company acknowledge receipt by 5pm on 31 July 2025. The Company failed to acknowledge receipt and failed to respond to any of the CMA’s follow up emails. The CMA continued to email the Company, until 5 September 2025 when they sent the Company a further letter requesting an explanation for the non-compliance. Again, the CMA served this letter by tracked post, hand-delivery and email.
By 20 October 2025, the CMA were still without a response from the Company and so the CMA issued them a Provisional Notice. In response to that Provisional Notice, the Company submitted representations that it had reasonable excuse for its non-compliance, citing defective service and belief in fraud as the excuse. In summary, upon consideration of all the relevant circumstances the Company’s submissions were rejected. On this basis, the CMA imposed a fixed penalty fine of £473,000, 75% of the statutory maximum.
What is an Information Notice?
Chapter 3 of the direct consumer enforcement guidance: CMA200 sets out the CMA’s information gathering powers. When undertaking a direct consumer enforcement investigation, the CMA may request further information from the subject, make test purchases, observe the conduct of business and enter premises with or without warrant.
Written Information Notices will specify the information being sought by the CMA, including the purpose for which the information is required, the time in which the recipient must comply and the form in which the information must be provided. The information requested cannot, however, require the recipient to provide information or an explanation that would involve an admission that the recipient business has infringed the law.
The CMA is under a statutory duty to carry out its consumer functions expeditiously. It was therefore significant in the Euro Car Parks Ltd case that the Company had delayed the CMA’s enquiries by approximately 2 months. Recipients may request an extension to the deadline set by the CMA for responding to an Information Notice but should do so as soon as possible and will be considered on a case-by-case basis.
Calculating the fine
The CMA has published a policy statement, set out in Chapter 7 of CMA200 in relation to its exercise of its powers to impose a penalty for non-compliance with an Information Notice. The matters to be considered by the CMA in calculating a penalty include, but are not limited to, the start point and seriousness of the breach, level of culpability, the starting point code and turnover assessment.
Once the CMA has determined the appropriate starting point code, they will then calculate the penalty. In the case of Euro Car Parks Ltd it was determined that the starting point was a ‘High A’ attracting a starting point in the upper range of 75%. The maximum starting point is:
- For a fixed penalty, £30,000 or 1% of the respondent’s turnover, whichever is higher; and
- For a daily penalty, the higher of £15,000 or 5% of the respondent’s daily turnover.
In the current case, the CMA decided to impose a fixed penalty of 75% of the Company’s turnover which resulted in a fine £473,000.
Concluding points
This case demonstrates the importance of cooperating with the CMA promptly. Businesses are encouraged to have appropriate practices in place to identify communications from the CMA and comply with an Information Notice as soon as possible and in any event, before the deadline set out in the Information Notice. It is also an important step to acknowledge receipt of the Information Notice and communicate with the CMA efficiently.
If you have any questions about the CMA’s enforcement powers or have received an Information Notice and are unsure of the next steps, please get in touch using our online enquiry form or by calling 0345 646 0406.