Legal powers

This page provides a brief outline of some of the OFT's legal powers - for more detailed information, see the legal powers section of the resource base. 

Competition Act

In the United Kingdom, the Competition Act 1998 is designed to make sure that businesses compete on a level footing.  It does so by prohibiting certain types of anti-competitive behaviour (the Chapter I and Chapter II prohibitions). The OFT has strong powers to investigate businesses suspected of breaching the Act and to impose tough penalties on those that do. Read more about the Competition Act.

Consumer Credit Act

The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit or lend money to consumers to be licensed by the OFT. Trading without a licence is a criminal offence and can result in a fine and/or imprisonment.

The Act also requires certain credit and hire agreements to be set out in a particular way and to contain certain information. Read more about the Consumer Credit Act.

Consumer Protection from Unfair Trading Regulations

The Consumer Protection from Unfair Trading Regulations implement the Unfair Commercial Practices Directive (UCPD) in the UK. Read more about Consumer Protection from Unfair Trading Regulations.

Courts and Legal Services Act

The OFT is required to look at the rules of bodies seeking or holding rights of audience in the courts or the right to conduct litigation, and to advise the Lord Chancellor or the Secretary of State for Scotland as to the effect of such rules on competition. Read more about the Courts and Legal Services Act.

Distance Selling Regulations

These laws are aimed at businesses that sell goods or services to consumers by: the internet; digital television; mail order, including catalogue shopping; phone or fax.
These regulations are enforced by the Office of Fair Trading, local authority trading standards departments in England, Scotland and Wales and the Department of Trade, Enterprise and Investment in Northern Ireland.

These bodies are under a duty to consider any complaint received and have powers to apply to the courts for an injunction against any person who is considered responsible for a breach of the regulations. Read more about Distance Selling Regulations.

Enterprise Act

The Enterprise Act 2002 has wide-ranging implications for businesses and consumers.
The Act makes a number of important reforms, which are designed to crack down on abuses that harm customers and fair-trading businesses alike and thus encourage productivity and enterprise.

It gives the OFT and other bodies responsible for consumer law enforcement stronger powers to seek court orders against businesses who breach certain consumer protection laws. Read more about the Enterprise Act.

Estate Agents Act

The Estate Agents Act 1979 regulates the work of estate agents. Its purpose is to make sure that they act in the best interests of their clients, and that both buyers and sellers are treated honestly, fairly and promptly. Read more about the Estate Agents Act.

Financial Services and Markets Act 2000

The OFT is responsible under the Financial Services and Markets Act 2000, which regulates financial services and markets, for keeping under review the rules and practices of the Financial Services Authority (FSA), recognised investment exchanges and recognised clearing houses. Read more about the Financial Services and Markets Act 2000.

Transport Acts

Under these Acts, the OFT  applies a competition test when local transport authorities form quality partnerships, make ticketing schemes, or offer services to tender
The test is whether one of the schemes or tenders would have a significantly adverse effect on competition. Read more about Transport Acts.

Unfair Terms in Consumer Contracts Regulations

These regulations protect consumers against unfair standard terms in contracts they make with traders. The OFT, together with certain other bodies, can take legal action to prevent the use of such terms. Read more about Unfair Terms in Consumer Contracts Regulations.

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