Current research

Road testing consumer remedies

When an OFT investigation identifies a serious problem in a market, it is under a duty to suggest a way in which the problem can be addressed - a remedy. The OFT continually endeavours to improve the performance of its remedies. This includes sharpening remedies in cases where consumers tend to act rationally as well as formulating more effective remedies in cases where behavioural biases are common.

Building on our research paper Assessing the effectiveness of potential remedies in consumer markets (pdf 632 kb) and focusing on empirical techniques, this current project looks at ways to test the effectiveness of our consumer-focused remedies before they are implemented.

These remedies can be thought of as falling into three categories:

• interventions to help consumers search the market and make comparisons (for example, setting up a price comparison website)
• interventions to help consumers make informed choices at the point of sale (for example, mandatory disclosure of pre-sale information) and
• interventions to help consumers switch suppliers (for example, requiring suppliers to produce an 'annual reminder' of customers' right to cancel).

The research, which is a joint project with the UK Competition Commission, is expected to enable us to better formulate and implement our remedies.

The contract has been awarded to London Economics.

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