As of 1st April 2014 the Office of Fair Trading ("OFT") was abolished with its powers being distributed across a number of statutory bodies.
In the Winter 2013 edition of this newsletter we reported on this important development (click here for the full article).
Who will take over?
The principal transfer of responsibility is from the OFT to the Financial Conduct Authority ("FCA") (the former Financial Services Authority) and the Competition and Markets Authority ("CMA").
The consumer side will divide roughly in two with consumer credit regulation going to the FCA and enforcement remaining with Trading Standards Departments. The changes to consumer credit law are likely to be minimal since it is proposed that the FCA will simply adopt much of the existing OFT guidance on consumer credit.
The new body CMA will also have a role in acting to promote competition for the benefit of consumers, including enforcing unfair terms legislation and the Consumer Protection from Unfair Trading Regulations 2008 (which are to be amended in October 2014). In addition, Trading Standards will also have this enforcement role.
Other OFT functions will be carried out by Trading Standards Departments (including some by the National Trading Standards Board) and these include taking over cases from the Advertising Standards Authority where some form of legal sanction (such as under the Enterprise Act 2001) is thought necessary and also the authorisation of codes of practice.
What does this mean for your business?
Any business which came under the remit of the OFT should ensure it is ready for the key changes.
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