Office of Fair Trading (OFT) - OFT activities, Structure, The OFT and Wintel Monopoly, The OFT and credit card charges

A non-ministerial government department in England and Wales, headed by the Director-General of Fair Trading. It keeps under review commercial activities which supply goods or services to the consumer, and collects information about these activities. The Fair Trading Act (1993) set up the office, and laid down a framework of law to eliminate or control unfair consumer practices. Action in the courts may be taken against those who persist in conduct which is detrimental to the consumer. The director-general also monitors commercial activities which relate to monopoly situations, and takes action on reports of the Monopolies and Mergers Commission.

The Office of Fair Trading or OFT is a UK statutory body established by the Enterprise Act 2002, which enforces both consumer protection and competition law, acting as the UK's economic regulator. The OFT's goal is to make markets work well for consumers, ensuring vigorous competition between fair dealing businesses and prohibiting unfair practices such as rogue trading, scams and cartels.

OFT activities

Studies into how markets are working

The OFT investigates markets proactively to see whether they are working well for consumers. Where appropriate, studies will lead to market investigation references to the Competition Commission, to enforcement action, consumer awareness campaigns or to recommendations to government, which will be published.

Communication to explain and improve awareness and understanding

Showing how competitive markets that work well are important for consumers, fair dealing businesses and economic performance;

Structure

The OFT has three main operational areas: Competition Enforcement, Consumer Regulation Enforcement and Markets and Policies Initiatives.

Competition Enforcement Division

The Competition Enforcement Division:

Enforces European Community and UK competition laws including Articles 81 and 82 of the EC Treaty and the Competition Act 1998; Stops cartels and other damaging anti-competitive agreements Stops any abuse of a dominant market position Investigates qualifying mergers under the Enterprise Act 2002 Promotes a strong competitive culture across a wide range of markets Informs business, through a widespread education programme, about changes in legislation Works with the European Commission and national competition authorities of other EU Member States on Article 81 and Article 82 cases

Consumer Regulation Enforcement Team

The Consumer Regulation Enforcement Team:

ensures that consumer legislation and regulations are properly enforced takes action against unfair traders encourages codes of practice and standards offers a range of information to help consumers understand their rights and make good choices liases closely with other regulatory bodies that also have enforcement powers.

Markets and Policy Initiatives Division

The Markets and Policy Initiatives Division explores how different market sectors operate, in order to help markets work well. They may research one particular market in detail or, for example, how codes of practice or professional rules operate across different markets in a range of businesses.

There are three main branches of activity within the division: economic and statistical advice and financial analysis, market investigations and competition, and relations with government departments and public liaison.

The OFT and Wintel Monopoly

The OFT has received a number of complaints about Microsoft, who has a dominate position in the operating systems (OS) market and other software markets. The OFT did start a token investigation into per processor licensing in schools, to help the government bargain with Microsoft, the OFT quietly dropped the investigation.

The OFT and credit card charges

In 2006 the OFT investigated the charges being imposed on customers of credit card companies.