Block Exemption

A term used to describe specific exemptions from European competition regulations enjoyed by the motor industry. These regulations were revised in October 2002, to abolish a number of restrictive practices. For example:

• Dealers may not have their own protective patch, and rivals may open new outlets and increase competition.
• Franchised dealers no longer have to offer servicing and sales if they want to specialise in one area.
• Dealers may now sell more than one brand of car.
• Importers and Internet dealers may buy up to 10% of a dealer's sales volume.
• Foreign dealers can advertise the price of right-hand-drive cars in the UK.