Investigations into the deceptive online selling of government services
Case reference number: CRE/0648
Complainant: OFT own-initiative investigations
Case opened: 14 July 2011
Case closed: 8 November 2012
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Summary of work
The OFT has decided, on administrative priority grounds, to close its investigation into websites which charge consumers for processing applications for a range of government services, such as European Health Insurance Cards (EHICs), which are available free or at a low cost if obtained directly from the government.
The investigation examined whether there had been an infringement of consumer protection legislation, in particular the Consumer Protection from Unfair Trading Regulations 2008. Among the matters investigated, the OFT looked at whether these websites were deceptively presenting themselves as official government websites.
The OFT found that in most instances the sites investigated carried statements explaining the nature of the service provided and disclaiming any official status or affiliation with the government.
The OFT also worked with central government to help official government websites appear more prominently when searched for online.
The OFT prioritises its work in accordance with its published prioritisation principles. Broadly speaking, it focuses its efforts and resources on deterring and influencing behaviour that poses the greatest threat to consumer welfare
Based on the results of its investigation and the improvement in online searches, the OFT has concluded that potential for significant consumer detriment is low and there is insufficient evidence of breaches of consumer protection legislation to warrant prioritising formal enforcement action in this instance. It may reconsider its decision in the future if it receives further evidence of suspected infringements, or its prioritisation assessment changes.
The OFT is, however, concerned that people visiting a website that charges for processing applications for a government service may not always be aware that they can save money by going direct to the government, so has issued a consumer alert to help raise awareness and warn people to be cautious when entering their card payment details online.
The OFT is unable to provide advice or resolve individual complaints for consumers. The Citizens Advice consumer service provides free, confidential and impartial advice on consumer issues. Visit www.adviceguide.org.uk or call the Citizens Advice consumer helpline on 08454 04 05 06.
Related documents
- The OFT's consumer alert providing advice on looking for government services online (8 November 2012)
- Investigations into the deceptive online sale of European Health Insurance Cards (August 2010)
- Press release OFT investigates deceptive online selling of government services (14 July 2011).
Contacts
Team Leader: Hugh Little (020 7211 8440, hugh.little@oft.gsi.gov.uk)
Project Director: Nigel Cates
Senior Responsible Officer: Cavendish Elithorn (020 7211 8170, cavendish.elithorn@oft.gsi.gov.uk).
Media enquiries
Any media enquiries should be directed to a member of our Press Office.
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