OFT publishes Annual Plan 2008-09

[Legal Beagles]

The OFT has published its Annual Plan which sets out its priorities for the coming year, and how it plans to address a number of forthcoming new challenges.

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[Amethyst]

Re: OFT publishes Annual Plan 2008-09

Over the last 12 months the OFT has focused on high impact outcomes which will provide real benefits to consumers.



In 2007 the OFT announced the highest ever fine for infringement of UK competition law against British Airways, found evidence of collusion between certain large supermarkets and dairy processors on the retail prices of dairy products, and conducted an investigation into suspected cartel conduct in relation to the market for marine hoses used to transfer oil. This sent a clear message that the OFT will not hesitate to use its enforcement powers to tackle anti-competitive behaviour.



The OFT also commenced proceedings in the High Court for a declaration on the application of the law on unfair contract terms to unauthorised overdraft charges, as well as carrying out a number of high profile consumer education campaigns including Save Xmas, which was launched following the collapse of the Farepak hamper company, and the annual Scams Awareness Month.





Among the new challenges facing the OFT in the coming year are the Consumer Protection from Unfair Trading Regulations which introduce a general duty not to trade unfairly as well as prohibiting a range of specific unfair commercial practices, and the commencement of new provisions contained in the Consumer Credit Act which will improve and strengthen the consumer credit licensing regime administered by the OFT.





The OFT is committed to applying the principles of better regulation in all its work and recognises the need to remove unnecessary burdens on business and it is today publishing its first Regulatory Simplification Plan (pdf 126 kb) which describes the initiatives currently planned for the coming year.





Philip Collins, OFT Chairman, said :
'Last year the OFT made a commitment to deliver high impact outcomes that would provide real and significant benefits to consumers. In the coming year we will continue to build on this commitment, working closely with our partners and stakeholders, focusing our resources on effective project delivery and carrying out evaluation of our work with the aim of delivering benefits for consumers in the most effective and efficient way whilst avoiding unnecessary burdens on business.'








NOTES

1. The OFT is the UK's competition and consumer authority. Its mission is to make markets work well. Its vision is of competitive, efficient, innovative and fair dealing markets where standards of consumer care are high, consumers are empowered and confident about making choices and where businesses comply with consumer and competition laws but are not overburdened by regulation.
2. It has a Board comprised of a chairman, chief executive and five non-executive directors. It is responsible for strategic direction, priorities, performance, and decisions on individual market studies. It has about 700 staff based in London and a representative in Scotland. Its annual budget is £65.6 million.
3. The OFT is required to publish an annual plan containing a statement of its main objectives and priorities for the year ahead. At least two months before publishing the Annual Plan, the OFT consults on its proposals. The Annual Report is published following the end of each financial year and provides a report to Parliament on the main activities performed during the period.





4. The Simplification Plan fits within a wider cross-government initiative, requiring Government Departments to publish rolling programmes of simplification, committed to reducing administrative burdens on businesses, stakeholders and the public sector.

[Amethyst]

Re: OFT publishes Annual Plan 2008-09

New consumer credit regime
In April 2008 the Consumer Credit Act 2006 will come into force amending the Consumer Credit Act 1974 to include new provisions to improve and strengthen the licensing regime administered by the OFT. These reforms reflect a recognition that more needs to be done to raise standards of performance in the
consumer credit market, particularly by raising the standard of those considered fit to provide consumer credit and taking action against irresponsible lending to protect
consumers. The new powers provided to the OFT are a substantial up-ratingof the licensing regime, to make itmore effective and better focusedon high risk activities and providers.

The reforms will grant the OFT power to impose requirements on consumer credit licensees to address matters that cause the OFT to be dissatisfied and to
impose new obligations on licensees to update specified information they have provided to the OFT. The reforms will also give power to the OFT to impose financial penalties on licensees where they fail to comply with certain requirements and where they fail to provide relevant information to the OFT. We may also consider revoking a licence or taking other licensing action where there is a serious failure to comply with requirements. In line with our overarching approach to enforcement, we will decide whether to impose a penalty, and how much it should be, according to all the circumstances of the case and taking account of any representations made to us.

[Amethyst]

Re: OFT publishes Annual Plan 2008-09

Northern Rock
We have committed to publish a report annually which will consider whether Northern Rock, under public ownership, is creating any identifiable negative impacts on competition in the banking sector.