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Third super-complaint looks at mail consolidation

18 March 2003

The OFT has received its third super-complaint, this time looking at the mail consolidation market.

The industry watchdog Postwatch has asked the OFT to look at problems experienced in the mail consolidation market by businesses. Mail consolidation is an option for businesses that send out large volumes of mail allowing them to carry out the initial mail sorting in return for a discount. The sorted mail is then bundled and passed to Royal Mail for onward transportation and delivery.

The OFT will now fast-track the super-complaint and announce within 90 days what action, if any, it proposes to take and whether it will launch a formal study into the market. The OFT will consult with the industry regulator Postcomm in considering its response.

NOTES

1. Super-complaints
The Enterprise Act enacts a super-complaints procedure. This will allow a number of bodies, designated by the Department of Trade and Industry, to refer complaints to the OFT which will then be dealt with on a fast-track basis. These complaints will focus on areas where the complainant suspects there are market structures or practices that are working against the interests of consumers. They are investigated by the Markets and Policy Initiatives Division. Prior to the Enterprise Act coming into force the OFT has agreed that it will consider super-complaints received from suitable bodies.

2. In this statement the functions of the Director General of Fair Trading (DGFT) are for simplicity described as the functions of 'the OFT'. The Enterprise Act proposes to replace the office of the DGFT with the OFT, to which would be transferred the DGFT's functions. The relevant provisions of the Enterprise Act are expected to come into force in April 2003.

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