News from the OFT

May 2012

Government plans to create a new Competition and Markets Authority (CMA)

The Government has announced plans to create a new Competition and Markets Authority (CMA), combining many of the functions of the OFT and the Competition Commission.

OFT Chairman Philip Collins responded to the announcement saying, 'we look forward to a new Competition and Markets Authority which builds on the existing strengths of the two organisations.'

Further details of the Government's announcement are available on the BIS website.

Reforms to the UK Consumer Protection Regime announced

The Government has announced its plans for the UK consumer protection regime, centred around reforms to make the Citizens Advice service a champion for consumer information and the creation of a new National Trading Standards Board. These reforms will involve a number of changes to the OFT's existing remit. OFT Chairman Philip Collins said:

'Vibrant competition depends on confident and well-informed consumers who are able to shop around effectively. We therefore welcome the fact that the OFT and, in due course, the new Competition and Markets Authority will continue to have powers under consumer protection legislation as well as under competition legislation to make markets work well.'

Further details of the Government's announcement are available on the BIS website.

British Airways to pay £58.5 million penalty in OFT fuel surcharge decision

The OFT has announced its decision that British Airways (BA) and Virgin Atlantic Airways (VAA) engaged in anti-competitive practices in relation to the pricing of passenger fuel surcharges, and has imposed a fine of £58.5 million on BA. VAA brought the matter to the OFT's attention and, under the OFT's leniency policy, has not been fined. This decision brings the OFT's investigation to a conclusion.

OFT refers private healthcare market to the Competition Commission

Following a public consultation on the findings of its private health care market study, published in December 2011, the OFT has referred the market for privately funded healthcare services in the UK to the Competition Commission for further investigation.

OFT issues guidance on misleading trading names

The OFT has issued guidance on misleading or otherwise undesirable trading names to businesses offering credit services or products. Among other practices, the guidance is designed to stop businesses from misleading consumers about their commercial status by using names such as 'Helpline'or 'Debtline', or any name that implies a business is a charity or public service.