Newsroom

OFT holds super-complaints seminar

PN 148/03     12 November 2003

A seminar for consumer bodies interested in becoming super-complainants is being held by OFT on 13 November at the Lewis Media Centre, Millbank.

The aim of the event is to inform potential super-complainants about how to achieve designation and to explain how the OFT will handle super-complaints as well as the kind of information and evidence that it is looking for in a super-complaint submission. This is to help ensure that the OFT receives complaints that are adequately substantiated and of good quality. 

Consumer bodies designated by the Secretary of State for Trade and Industry will be able to make super-complaints to the OFT when they think that a feature of a market appears to be significantly harming the interests of consumers.

Super-complaints will be given fast-track consideration. The OFT and Regulators with a duty to respond to super-complaints are required to publish a response detailing what action they intend to take, if any, and why, within 90 calendar days from when a complaint is received. The OFT has already launched two market studies in response to informal super-complaint-one into private dentistry and the other into doorstep selling (see PNs 04/02, 92/03 and 75/02).

Penny Boys, OFT Executive Director, said:

'The seminar is an opportunity for the OFT to work with consumer bodies to ensure that the super-complaint process works effectively and in the interests of consumers.'

NOTES

1. The Enterprise Act 2002 makes provision for designated consumer bodies to make 'super-complaints'. A super-complaint, as defined in section 11(1) of the Act, is a complaint submitted by a designated consumer body that 'any feature or combination of features, of a market in the UK for goods or services is or appears to be significantly harming the interests of consumers'. This will not normally be the specific behaviour of individual businesses. Relevant market features that could give rise to a complaint include the market structure or the general conduct of firms operating in the market.

2. Only consumer bodies designated by the Secretary of State for Trade and Industry (Section 11(5)) can make a super-complaint. Any organisation can apply to become a designated consumer body provided it appears to represent the interests of consumers and meets any other criteria published by the Secretary of State. It is expected that those designated will be informed bodies who are in a strong position to represent the interests of groups of consumers and able to provide solid analysis and evidence in support of any super-complaint they may make.

3. The Consumers' Association (CA) and the National Consumer Council (NCC) applied for designation during the summer and the DTI is expected to announce its decision regarding both applications shortly. Citizens Advice (CAB) also recently applied for designation and a decision regarding its application from the DTI is expected early next year.

4. The OFT is not limited in the types of action, if any, it may take following a super-complaint. Outcomes may include the launch of a market study by the OFT, enforcement action, recommending changes to legislation, or referring the market to the Competition Commission for further investigation. The OFT will publish its response, giving reasons for the action it proposes to take.

5. Super-complaints may also be made to sectoral regulators in relation to particular markets. The Enterprise Act 2002 Order 2003 (SI 1368) gave super-complaint duties to: the Director General of Telecommunications, the Gas and Electricity Markets Authority, the Northern Ireland Authority for Energy Regulation, the Director General of Water Services, the Rail Regulator and the Civil Aviation Authority.

6. In March 2003 the OFT also received an informal super-complaint from Postwatch. It was felt that Postcomm was in a better position to investigate the matter further.

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