OFT to go as Government plan shake up on protection for consumers

The coalition Government has announced today that the Office of fair Trading (OFT) and Competition Commission are to close.

A Consumer Rights Bill going through Parliament will simplify the protection of consumer rights, stated the Secretary of State for Business, Innovation and Skills and President of the Board of Trade, Vince Cable.

In recent years the OFT has ruled on and agreed to a £2.6m settlement with Mercedes-Benz and three of its CV dealers as part of its long-running investigation into competition law infringements, and decided not to pursue an investigation into fuel price fixing.

“The government believes that consumers who are well-informed about their rights and what they’re buying are more confident and more likely to spend money. We also think that consumers who feel properly protected by the law are more likely to spend money.

We want to give consumers more confidence - and legal back-up - to deal with bad service or shoddy goods. We also want to encourage consumers to spend money, as this will help the economy grow,” he added.

The National Franchised Dealers Association (NFDA), has welcomed measures on Collective Redress that will make it easier for groups of consumers and companies to challenge anti-competitive behaviour themselves. 

Sue Robinson, NFDA Director, said: “The NFDA have long called for a more effective means of collective action and therefore we welcome any initiative which offers improved access to justice for both businesses and consumers who have incurred losses as a result of competition law.

“The NFDA have been an integral part of the consultation process.  As well as making written submissions, we were present during roundtable meetings where we were able to lobby on behalf of our members.

“Under the new proposals NFDA members, who are predominantly Small and Medium Enterprises, will now be in a stronger negotiating position.”