Tied Pubs (Scotland) Act 2021 implementation: data protection impact assessment

Data Protection Impact Assessment

Tied Pubs (Scotland) Act 2021 - Implementation

The following pieces of secondary legislation may be required to implement the Tied Pubs (Scotland) Act 2021:

• The Tied Pubs (Scotland) Act 2021 (Commencement No. 1) Regulations 2024
• The Scottish Pubs Code Adjudicator (Duty to Publish Certain Information) Regulations 2024
• The Scottish Pubs Code Adjudicator (Miscellaneous Listings) Order 2024
• The Scottish Pubs Code Regulations 2024
• The Tied Pubs (Fees and Financial Penalties) (Scotland) Regulations 2024
• The Tied Pubs (Scotland) Act 2021 (Commencement No. 2) Regulations 2024
• The Tied Pubs (Scottish Arbitration Rules) Amendment Order 2024

Version date: 18 April 2024

Review date: September 2024

The Tied Pubs (Scotland) Act 2021 (“the Act”) received royal assent in May 2021. The purpose of the Act is to regulate the relationship between tied pub landlords and tenants through the introduction of a statutory Scottish Pubs Code and the appointment of a Scottish Pubs Code Adjudicator. The role of the Adjudicator is to oversee and enforce the code.

Tied pubs are owned by a pub-owning business (the landlord) and leased to a tenant. Tenants must buy some or all of their products and services ("the tie") from the pub-owning business or someone nominated by the pub-owning business. Ties can include, for example, beer, and these products and services are often charged at a higher cost than on the open market. In return, tenants sometimes pay lower rent and receive other support from the pub-owning business. As of May 2023, it is estimated there were just under 700 tied pubs in Scotland.

The Act commits the Scottish Government to lay a Scottish Pubs Code before Parliament and to appoint an Adjudicator.

The aim of the Scottish Pubs Code is to improve the position of tied pub tenants through creating a statutory framework to govern the relationship between pub-owning businesses and their tied pub tenants. It has been prepared consistently with the three regulatory principles set out in the Act. These are:

a) the principle of fair and lawful dealing by pub-owning businesses in relation to their tied-pub tenants,

(b) the principle that tied-pub tenants should not be worse off than they would be if they were subject to neither a product tie nor a service tie,

(c) the principle that any agreement between a pub-owning business and a tied-pub tenant should fairly share the risks and rewards amongst the parties.

A Pubs Code and a Pubs Code Adjudicator for tied pubs has existed in England and Wales since 2016. The Pubs Code applies to pub-owning businesses that own 500 tied pubs or more, compared to the Scottish Pubs Code which applies to all pub-owning businesses in Scotland.

The text of the proposed legislation/amendment is attached at Annex A.

This Data Protection Impact Assessment (DPIA) works in conjunction with the Article 36(4) ICO consultation form submitted in advance of this, as the proposal requires consultation with the Information Commissioner’s Office (ICO).

This DPIA is undertaken on behalf of the data controllers who will be providing advice, investigating non-compliance, and arbitrating disputes– in compliance with UK General Data Protection Regulation (UKGDPR) Article 35(10).