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OFT advises Competition Commission to remove electrical goods regulation
Originally posted by 5corpio
The OFT today advised the Competition Commission that the Domestic Electrical Goods Order and associated undertakings, which cover everyday goods such as televisions and washing machines, can be removed.
Following an investigation by the then Monopolies and Mergers Commission (MMC) in 1997, specific regulation was introduced to promote competition between retailers of domestic electrical goods, particularly by preventing suppliers from recommending resale prices or otherwise influencing retail pricing.
Today's announcement follows an OFT review of the Order, which considered views from across the sector. The review found that since the Order was first introduced in 1998, there have been several significant developments which have led to improved competition and mean that the Order is no longer needed. These include new high street and online traders entering the market and consumers using the internet to compare prices. In addition, other competition legislation now provides an effective mechanism to address any future competition concerns of the type addressed by the Order should they re-emerge.
The Competition Commission will now consider the OFT's advice, before reaching a conclusion on what should happen to the Order.
Claudia Berg, Director in the OFT's Goods and Consumer Group, said:
'This recommendation reflects major changes over the past decade in the way consumers purchase household electrical goods, not least the growth of the internet. We are determined to ensure such industry-specific regulation only remains in place where it continues to be necessary to promote effective....Read more LINK: OFT advises Competition Commission to remove electrical goods regulation - The Office of Fair Trading
Following an investigation by the then Monopolies and Mergers Commission (MMC) in 1997, specific regulation was introduced to promote competition between retailers of domestic electrical goods, particularly by preventing suppliers from recommending resale prices or otherwise influencing retail pricing.
Today's announcement follows an OFT review of the Order, which considered views from across the sector. The review found that since the Order was first introduced in 1998, there have been several significant developments which have led to improved competition and mean that the Order is no longer needed. These include new high street and online traders entering the market and consumers using the internet to compare prices. In addition, other competition legislation now provides an effective mechanism to address any future competition concerns of the type addressed by the Order should they re-emerge.
The Competition Commission will now consider the OFT's advice, before reaching a conclusion on what should happen to the Order.
Claudia Berg, Director in the OFT's Goods and Consumer Group, said:
'This recommendation reflects major changes over the past decade in the way consumers purchase household electrical goods, not least the growth of the internet. We are determined to ensure such industry-specific regulation only remains in place where it continues to be necessary to promote effective....Read more LINK: OFT advises Competition Commission to remove electrical goods regulation - The Office of Fair Trading