On 26 March 2009, the Office of Fair Trading (OFT) published its Annual Plan setting out its priorities for the coming year.

Four key themes

The OFT has focused on priority sectors in previous Annual Plans. This year, it has chosen to focus its strategy on high-level aims rather than individual projects in order to allow it to respond flexibly to fast-moving economic events. The Annual Plan sets out four "main themes" for the next 12 months:

Maintaining the OFT's record of high-impact enforcement and interventions

Having focused on high-profile enforcement action in 2008, including the first ever criminal convictions against individuals for price-fixing offences, the OFT intends to continue this in 2009 and warns that "businesses and individuals who disregard their legal obligations to the detriment of consumers and competitors will not be able to use their economic circumstances as an excuse". It has therefore increased the proportion of its resources allocated to interventions in the most serious cases and to communicating their impact.

Responding to changing circumstances and events

The OFT is mindful of the fast-changing economic climate and aims to anticipate and address new competition risks that may arise as a result of the downturn. Consumer credit and financial services regulation will be a particular focus and the types of intervention the OFT uses may change due to the recession.

Influencing the debate around competition and consumer issues

The OFT intends to ensure that vigorous competition is recognised as a key element in economic recovery. To this end, resources have been prioritised for its advocacy function in the coming year. It intends to provide input into government policy and "actively engage with business and trade associations on self-regulation, governance and compliance".

Working with partners

The OFT will cultivate links with bodies such as Local Authority Trading Standards Services and the Competition Commission, as well as central government. It intends to work with these partners on issues such as consumer credit and priority sectors for future economic growth. The OFT also intends to take a "leading role" at a European level in advocating coordination across competition regimes.

Other OFT priorities for the future

  • Continuing to work with the European Commission and the UK Department for Business Enterprise and Regulatory Reform (BERR) on the review of the eight key directives known as the "Consumer Acquis" directives. These cover doorstep selling, distance selling, package travel, unfair contract terms, timeshare, sale of goods and associated guarantees, price indications and injunctions.
  • Feeding into BERR's consultation on the implementation of the new Consumer Credit Directive.
  • Working with BERR to ensure the EU Services Directive is successfully implemented.
  • Considering whether it should apply for access to alternative enforcement actions to criminal prosecution under the Regulatory Enforcement and Sanctions Act 2008.
  • Ensuring that it does not impose unnecessary burdens on business, as required by the Regulatory Enforcement and Sanctions Act 2008.
  • Publishing a specific financial services plan in addition to the OFT's normal Annual Plan.

The Annual Plan also reiterates and expands the OFT's strategy for continuing to fulfil the four Framework Objectives it agreed with the Government in 2007, which relate to efficiency, skills and partnership.

How the OFT addresses its enforcement priorities during the downturn will be a key antitrust issue during the coming year – the new plan shows the OFT's determination to apply the competition rules seriously.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

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The original publication date for this article was 30/03/2009.