Office of Fair Trading

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The Office of Fair Trading or OFT is a UK statutory body established by the Enterprise Act 2002, which enforces both consumer protection and competition law, acting as the UK's economic regulator.

The OFT's goal is to make markets work well for consumers, ensuring vigorous competition between fair dealing businesses and prohibiting unfair practices such as rogue trading, scams and cartels.

The OFT's activities in pursuit of this goal involve:

enforcement - of competition and consumer protection law.

The OFT aims to uproot and deter all forms of anti-competitive behaviour, including cartels and the abuse of market power. They investigate allegations of breaches of the Competition Act. When an infringement is found, they apply appropriate penalties in accordance with law (including applying for disqualification of directors). They also investigate potential criminal cartel offences (together with the Serious Fraud Office, and the Crown Office in Scotland). The OFT will refer to the Competition Commission mergers where they believe that there is or may be expected to be a substantial lessening of competition in a UK market. They also work with international partners to ensure effective enforcement.

market studies - into how markets are working.

The OFT investigates markets proactively to see whether they are working well for consumers. As well as business conduct, studies cover government laws and regulations to ensure a competitive environment for business and consumers. Where appropriate, studies will lead to market investigation references to the Competition Commission, to enforcement action, consumer awareness campaigns or to recommendations to government, which will be published.

communication - to explain and improve awareness and understanding.

Showing how competitive markets that work well are important for consumers, fair dealing businesses and economic performance; explaining its decisions transparently; promoting compliance by explaining to business what the law is and how the OFT will apply it; promoting consumer awareness and confidence; co-ordinating effectively with enforcement partners locally, nationally and internationally, and advising government on how to achieve the most effective regime for competition and consumers.

The OFT has three main operational areas - Competition Enforcement, Consumer Regulation Enforcement and Markets and Policies Initiatives.

The Competition Enforcement Division:

enforces European Community and UK competition laws including Articles 81 and 82 of the EC Treaty and the Competition Act 1998;
stops cartels and other damaging anti-competitive agreements
stops any abuse of a dominant market position
investigates qualifying mergers under the Enterprise Act 2002
promotes a strong competitive culture across a wide range of markets
informs business, through a widespread education programme, about changes in legislation
works with the European Commission and national competition authorities of other EU Member States on Article 81 and Article 82 cases

The Consumer Regulation Enforcement Team:

ensures that consumer legislation and regulations are properly enforced
takes action against unfair traders
encourages codes of practice and standards
offers a range of information to help consumers understand their rights and make good choices * liases closely with other regulatory bodies that also have enforcement powers.

Markets and Policy Initiatives Division:

Explores how different market sectors operate, in order to help markets work well. They may research one particular market in detail or, for example, how codes of practice or professional rules operate across different markets in a range of businesses. The results of the research, which are published, help the OFT to assess what action, if any, needs to be taken to protect consumers' interests. They may recommend stronger enforcement, or a change in the regulations, or suggest an awareness raising campaign for consumers (but will not always recommend intervention and when this is the case, will ensure that any non-intervention decision is well-informed and open to public scrutiny).

There are three main branches of activity within the division: economic and statistical advice and financial analysis, market investigations and competition, and relations with government departments and public liaison.

External links

[Office of Fair Trading]

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Office of Fair Trading

See also

External links