Here is a summary of our views:

• Necessity for Deregulation: The CARs, introduced to harmonise UK law with the law of other EU member states, now represent an inflexible framework that hinders the principle of freedom of contract. Their broad application, including application to industries like food delivery and software, has in our experience introduced uncertainty, inefficiencies, and restrictions on business operations.
• Inefficiencies and Restrictions: Mandatory obligations under the CARs, such as minimum notice periods and compensation calculations, limit the ability of agents and principals to tailor agreements to their business needs. This has led businesses to adopt less efficient structures to avoid the applicability of the CARs.
• Uncertain Scope and Uncapped Compensation Burden: Ambiguities in the definition of commercial agents, uncertainties as to scope, and the burdensome compensation obligations upon termination, further complicate the commercial agency landscape, often protecting large commercial entities, who are acting as agents, unnecessarily.
• Benefits of Deregulation: Repealing the CARs would restore flexibility, allowing agents and principals to negotiate terms that suit their specific needs, likely reducing legal disputes and making the UK a more attractive jurisdiction for international business.
• Proposal for Retrospective Application: Addleshaw Goddard advocates for the deregulation measures to apply immediately and retrospectively, avoiding unfairness and competition distortions which would result from a period of dual running.

Overall, deregulating the CARs would lead to a more dynamic, fair, and efficient commercial agency framework in the UK. Addleshaw Goddard is committed to engaging with stakeholders and supporting reforms that reflect modern business realities.