Strategic research

Below are details of reports recently published under the OFT's ongoing programme of strategic research.

Back to top

Commissioning and competition in the public sector

The study will look at commissioning across a range of public services including health, education, welfare and justice, to identify examples of best practice of competitive procurement and to consider the impact of related issues such as payment by results, the role of small and medium sized enterprises and the third sector, and delivery through the mutual model. Where possible, the OFT will also draw parallels with examples of competitive commissioning of private services and will make international comparisons.

See Commissioning and competition in the public sector

Back to top

Markets and Households on Low Incomes report

The Markets and Households on Low Incomes report provides a review of how people on the lowest incomes are treated in a number of case study markets and identifies reasons for any disadvantages that they suffer compared with people on higher incomes. It considered a range of factors on both the demand and supply sides of these markets which might contribute to any disadvantage.

The report also considers whether people in low income groups have less access to certain 'enabling' products, such as bank accounts and the internet, which provide improved access to other products and whether they are, as a result, disadvantaged in other markets.

This work was undertaken by Europe Economics and the New Policy Institute for the Office of Fair Trading.

Download Markets and Households on Low Incomes (pdf 851kb)

Back to top

Online Markets - discussion paper

Trading and marketing online (e.g. companies advertising online or selling goods and services online) is growing in scale and changing rapidly. It involves activities which have network effects potentially leading to concentration in some markets that act as gateways for small and medium sized enterprises (SMEs1) trading online. This independent research paper from Plum Consulting and Keplar LLP aims to help build the OFT's understanding of the dynamics of online markets by:

• Describing routes to market for SMEs wishing to trade online.
• Commenting on effects of the economics of these markets.

In doing this, the research aims to provide context for the consideration of any potential complaints.

The focus is on SMEs and online markets. These findings are based on a literature review and on interviews with key industry participants and a small number of SMEs. This summary discusses findings by section of the value chain then by top-level theme.

See the Online Markets - discussion paper page.

Related documents:

• Report: Online Markets discussion paper (pdf 767kb)
• Press release, 7 July 2010
• See the FAQs relating to the Online Markets discussion paper

Back to top

Online shopping website compliance with the DSRs
Websweep Report 2012

The report details the findings of a websweep of the top 100 UK online retail websites plus the top clothing etailers to assess levels of compliance with key elements of the Distance Selling Regulations.

Key findings include:

• 33 per cent of sites that provided information on cancellation appeared to impose unreasonable restrictions on customers' rights to a refund.  Most common was requiring that the product must be in the original packaging or in the original condition, which can infringe on consumers' rights to reasonably inspect/ assess the product.
• 60 per cent provided a web contact form rather than an email contact address, as required by the E-Commerce Regulations. Two per cent provided no electronic contact details at all.
• While 60 per cent of sites indicated upfront that compulsory charges would be added to the first price shown, 24 per cent of these sites went on to add further unexpected charges at the check-out.

Top Tips

Five of the simplest ways businesses can make their websites more compliant with distance selling regulations are by doing the following:

1. Providing a full geographic address
2. Providing a proper email contact address
3. Flagging up hidden or unexpected charges early in the buying process 
4. Being clear and open about cancellation rights 
5. Providing a full refund plus refund of delivery charges when things go wrong

For more information go to www.oft.gov.uk/distanceselling

Press Notice Link

Notes:

• The 2012 websweep findings are compared to those of a similar exercise conducted in 2011, and an earlier study in 2009
• Methodologies for the 2012 and 2011 websweeps are comparable with the exception that the sample for 2012 included the top clothing etailers. The comparable samples for 2012 and 2011 are broken out in the report
• The 2009 websweep was conducted by Trading Standards and is not directly comparable in terms of sample or methodology
• Both the 2012 and 2011 websweeps took the approach that if evidence for compliance could not be found in the time it would reasonably take a shopper to find it, the site would be recorded as non-compliant
• Websites are dynamic and a websweep provides a snapshot of a website's compliance or non-compliance at the time of the sweep. This can subsequently change.

Download Online shopping website compliance with the DSRs Websweep Report 2012 (pdf 430kb)

Back to: Research