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Making markets work better

PN 160/03     4 December 2003

Ensuring that its powers, both old and new, are used to best effect for consumers and good businesses is a key aim in the OFT's second Annual Plan, published today for consultation.
Download the Annual Plan 2004-05 consultation (pdf 340 kb).

New powers, such as those in the Enterprise Act covering mergers, the criminal cartel offence and stopping breaches of consumer laws, will be used robustly but proportionately.  

The Plan emphasises the importance of getting the right combination of communication, market analysis and enforcement to ensure that competition and consumer law works effectively for the public.

The Plan also highlights the OFT's enhanced role in encouraging business codes of practice and consumer education.

John Vickers, OFT Chairman, said:

'Each year we aim to make markets work better. Markets that work well are important not only for consumers but also for all the good businesses in the economy. We always welcome comment and constructive criticism on how best to help markets work better. Public consultation on our Annual Plan is an important part of this process.'

The OFT's objectives and estimated levels of activity are set out in the plan. They include:

• encouraging new code sponsors in 25 agreed sectors to apply for OFT approval
• continuing to work with DTI on consumer credit law reform
• improving the fitness checking of consumer credit licence applicants though access to criminal convictions 
• investigating, under the Competition Act, between 45 and 65 cases where there are reasonable grounds to suspect an infringement and making between five and ten reasoned, published infringement decisions  
• investigating, with the Serious Fraud Office, potential criminal cartel offences
• considering between 180 and 230 public mergers, leading to references to the Competition Commission (or undertakings in lieu of a reference) in between ten and 20 cases 
• initiating around seven market studies, at least two of which will look at the effect of government regulations
• running targeted campaigns to raise consumer awareness, including ones on improving awareness of credit amongst young adults and improving consumer rights awareness among minority ethnic groups.

In 2004/05 the OFT proposes to allocate its resources as follows:

• £38.6m for guidance and enforcement (competition and consumer regulation) 
• £8.9m for market studies (includes policy advice and information gathering)
• £7.1m for communications (includes consumer education).

Responses on the consultation should be sent to nigel.cates@oft.gsi.gov.uk, Room 2E/014, OFT, Fleetbank House, 2-6 Salisbury Square, London EC4Y 8JX, no later than 30 January 2004. Responses will be made public at the end of this consultation unless respondents say otherwise.

NOTES

1. Under the Enterprise Act 2002, the OFT is required to produce an Annual Plan setting out its main priorities and objectives for the financial year ahead. The final Plan will be published by 31 March 2004.

2. The Plan looks forward over a three-year rolling planning period starting from April 2004. In this period the OFT expects to make demonstrable progress on the following objectives:

• consumers judge that markets deliver more and better choices in terms of goods and services
• consumers and businesses judge that market abuses have been addressed 
• businesses judge that barriers to fair and open competition are being addressed 
• consumers and businesses have a better understanding of their rights and obligations under competition and consumer protection law
• stakeholders judge that we operate in accordance with our values.

It also aims to:

• maintain its position among Global Competition Review's top international jurisdictions
• develop criteria for benchmarking its performance against international competition and consumer authorities.

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