Summary
The Consumer Rights (Payment Surcharges) Regulations 2012 implement EU-derived rules prohibiting traders and payees from charging consumers payment method fees that exceed the actual cost borne by the charger. It covers sales contracts, service contracts, and contracts for water, gas, electricity, district heating or digital content. The regulation includes extensive exemptions for social services, health, gambling, banking, insurance, housing rental, and other categories. It establishes enforcement authorities (local weights and measures authorities), creates private law remedies making contravening contract terms unenforceable, and allows for injunctive relief.
Reason
This regulation is a price control mechanism that restricts traders' and payees' ability to recover their actual costs for different payment methods, distorting market price signals. It was originally an EU directive (2011/83/EU) — precisely the type of bureaucratic burden we should shed post-Brexit. The extensive exemption list (13 categories of excluded contracts) demonstrates arbitrary regulatory scope rather than principled policy. It prevents merchants from transparently pricing the real cost of card payments versus cash, inhibits competition in payment processing, and creates compliance costs. While intended to protect consumers from excessive surcharges, it also prevents merchants from offering discounts for cheaper payment methods, harming the very consumers it aims to protect. The regulation substitutes government-mandated pricing constraints for market-determined pricing.