Newsroom

OFT to undertake study of market for classified directory advertising services

3 November 2004

On 18 August 2004 the OFT announced a review of undertakings given in relation to advertising in Yellow Pages (see press release 128/04). 

This review will now form part of a study of the market for classified directories advertising under section 5 of the Enterprise Act 2002. The study will examine how the market is working, and include an assessment of the effect of the undertakings within that market, and the effect of any changes in the market since the undertakings were given in 2001. The OFT will have a number of options when deciding what, if any, action to take as a result of its study. 

The OFT expects to conclude the study in spring 2005.

NOTES

1. Market studies can be carried out under section 5 of the Enterprise Act 2002 in order to identify whether there are problems in a market that should be addressed through the OFT's other functions. These functions include the enforcement of consumer regulations, the promotion of consumer information and education, the enforcement of competition legislation and making market investigation references to the Competition Commission.

2. The undertakings were given by Yell Ltd in 2001. They include undertakings to provide a price list ('rate card') to anyone who requests it; to cap prices at RPI-six per cent, or as they were on 1 December 2001, whichever is the lower; and not to distribute directories outside of the distribution area printed in each edition.

RPI-six per cent means that prices cannot rise by more than six percentage points below the rate of inflation (retail price index).

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