The OFT Publishes its Annual Report for 2009/2010 & Annual Plan for 2010/2011
The Office of Fair Trading (the “OFT”) has today published its Annual Report for the financial year 2009/2010 and its Annual Plan for 2010/2011.
Annual Report – 2009/2010
Over the period 2007 to 2010, the OFT claims to have saved UK consumers an average of at least £359m per year in its key fields of competition enforcement, consumer protection, and merger and markets work.
The OFT’s key activities during 2009/2010 included:
- Competition Law Enforcement
The OFT issued infringement decisions against 109 firms for breaches of competition law, particularly in the construction and financial services sector. From 1 April 2009 to 31 March 2010 the OFT imposed or agreed fines totaling in excess of £197 million.
- Consumer Protection – Unfair Commercial Practices/Unfair Contract Terms
The OFT took action to protect consumers from unfair commercial practices and unfair contract terms, including the OFT's first criminal consumer protection investigation into a suspected unlawful pyramid scheme.
- Market Studies
The OFT published or initiated market studies in a number of areas, including home buying and selling, Isle of Wight ferry services, second-hand cars and corporate insolvency, and made practical recommendations to promote benefits for consumers in these markets.
Annual Plan – 2010/2011
Going forward, the OFT plans to continue to use its competition law enforcement powers to protect consumers by ensuring that competition in UK markets works well. It also plans to develop and pursue a strategy for online consumer protection.
Commenting on the OFT’s Annual Report & Annual Plan, Douglas McLachlan, an Associate specialising in Competition law at Biggart Baillie LLP said:
“It’s clearly been another busy year for the OFT. In particular, the OFT continues to be extremely active in enforcing competition law in the construction industry – recession or no recession.
What’s quite remarkable from the detail of the Report is that of the 109 firms that the OFT fined from 1 April 2009 to 31 March 2010, 103 of those firms were involved in a major cartel in the construction industry. The remaining 6 firms were all recruitment agencies, who received fines totalling £39.27 million for price-fixing and the collective boycott of another company in the supply of candidates to the construction industry.
Because the discovery of one cartel tends to lead to the discovery of others, it’s very likely that the OFT will continue to investigate the UK construction industry in 2010/2011. I’d be surprised if the construction industry (or indeed UK recruitment agencies active in any market) can breathe a sigh of relief just yet. If you’re in these sectors and you think you may have something to confess then speak to a competition lawyer now. The OFT can give 100% leniency from fines to the first firm to report a new cartel, so there’s a big advantage in being the whistleblower.
If you don’t, then your competitors might get there first.”
For more information, please contact:
Glasgow: Colin Miller or Douglas McLachlan - tel: 0141 228 8000
The information contained in this article is given for general information only, reflects the current law on the date of the article, and does not constitute legal advice on any specific matter