The Competition and Markets Authority (CMA) has decided not to appeal a High Court ruling on July 23rd that dismissed a claim for compensation for Care UK residents who had been charged in advance for administration fees.
The CMA had sought remedy for both Care UK and Barchester Healthcare residents who paid the charges, arguing the non-refundable upfront administration fee broke consumer protection law.
Following the High Court ruling in which found Care UK’s pre-admission appraisal of residents was ‘very detailed’ with ‘very significant activities’, the CMA has dropped its claim against Barchester.
In a statement the CMA said: “the CMA has decided not to apply to the Court of Appeal for permission to appeal the judgment, given the Judge’s ruling that her judgment turned on the specific facts of the particular case, which limits both its significance beyond this case and the opportunity to appeal it.””
“The CMA has decided to discontinue its claim against Barchester. This is because many of the key facts in the two cases are materially similar. Having regard to its Prioritisation Principles the CMA has decided to discontinue its whole claim against Barchester”
“The CMA is suspending its Consumer Law Advice for Care Home Providers and supporting documents while it considers the implications of the judgment in the case the CMA brought against Care UK. The case concerned the charging of a large upfront administration fee. The CMA expects that many of the principles set out in the Advice will remain applicable and intends to reissue the Advice when its review is completed. The CMA will take a decision on the next steps for its review of compliance with the advice after it has reissued that advice. The CMA’s decision to suspend its guidance does not affect the duty of Care Home Providers to comply with consumer protection law.”