ICN Market Studies Working Group
2009/10 Draft Work Plan for ICN Market Studies Handbook and ICN Market
Studies Information Store
1. ICN Market Studies Handbook
Proposed Handbook Contents
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ICN Chairman's Forward
Executive Summary: summarising contents of handbook
Introduction: setting out the background to and purpose of the handbook –
(not intended to represent Recommended Practices) methodology, and range
of purposes for which market studies are conducted
Market study selection – developing ideas for studies, and selecting the best
ideas to take forward
Data collection – including use of formal powers
Stakeholder engagement – throughout the life of the study
Process management – other process management points not already
covered under data collection and stakeholder engagement, e.g. use of
internal or external guidance on process, use of third parties to conduct
studies, duration of studies etc.
Outcomes – how to maximise the effectiveness of market studies (possible
links with Competition Advocacy Experience Sharing workstream)
Evaluation – purpose and process of evaluation
Conclusion – summary of key issues/areas of best practice
Proposed Project Plan
What?
Conference call
By whom?
All
Allocation/purpose
Discuss project plan
Seek permission
from respondents
to Market Studies
Project
Questionnaire to
share individual
responses with
working group
members for
purposes of
drafting, and to
name individual
agencies where
there is best
practice that other
agencies can draw
on
OFT
To enable those to whom
chapters are allocated to
view materials received for
purposes of the Market
Studies Project Report
Produce draft
outline chapters,
and draft
introduction
OFT
OFT
By when?
13 July 2009 1pm
BST
Mid September
End September
2009
1
Conference call
All
Discuss outline chapters
and draft introduction
End September
2009
Work up outline
chapters, drawing
on material
submitted for
purposes of Market
Studies Project
Report, and
following up with
individual agencies
where appropriate
All
Drafting of chapters
allocated to:
October to Mid
December 2009
Conference call
All
Discuss draft chapters
Peer review of
chapters
All –
including
NGAs
Peer review of each
chapter allocated to:
Selection: [agency name]
Data collection: [agency
name]
Stakeholder engagement:
[agency name]
Process management:
[agency name]
Outcomes: [agency name]
Evaluation: [OFT?]
Mid December
2009
January 2010
Selection: [agency/NGA
name]
Data collection:
[agency/NGA name]
Stakeholder engagement:
[agency/NGA name]
Process management:
[agency/NGA name]
Outcomes: [agency/NGA
name]
Evaluation: [agency/NGA
name]
Draft Executive
Summary and
Conclusions
OFT
OFT
January 2010
Conference call
All
Report on outcome of peer
review and discuss draft
Executive Summary and
Conclusions
End January
Peer review of draft
Handbook
NGAs
Mid February 2010
Formatting of draft
Handbook
NGA
End February 2010
Circulate final draft
Handbook
NGAs/OFT
End February 2010
Prepare draft
All
February 2010
2
conference
presentation and
materials
Conference call
All
Discuss final draft
Handbook and draft
conference materials
End February 2010
Submit Handbook
to conference
OFT
March 2010
Finalise conference
presentation and
materials and
submit to
conference
Conference
All
March 2010
All
Last week of April
2010
2. ICN Market Studies Information Store
Proposed Information Store Contents
We propose that this should be based on the data submitted by respondents in the
Annex to the Market Studies Project Questionnaire concerning market studies
conducted in the last five years. By way of example, the data submitted by the OFT
is attached as an Annex. We propose to include the data fields relating to:
- name of the market studied
- source of idea for study
- reason for study
- end date/duration
- outcome (one or more of: competition enforcement, consumer enforcement,
consumer education, business education, voluntary business compliance,
recommendations to government for changes in the law, recommendations to
government to change market structure, recommendations for changes to
government policy, referral to third parties, no problem found)
We do not propose to include:
- value of the sector
- assessment of outcomes (including any rating of the outcome that agencies
provided)
We propose that the data should, at a minimum, be accessible by country. We are
exploring with the ICN Secretariat the feasibility of also allowing data to be accessed
by sector.
We propose that the data should be updated by member agencies on an annual
basis – and that the ICN secretariat would take responsibility for sending out annual
reminders to all member agencies, and for incorporating new material in the
information store.
Proposed Project Plan
3
What?
Conference call
By whom?
All
Allocation/purpose
Discuss project plan
By when?
13 July 2009 1pm
BST
End August 2009
Discuss
practicalities of
creating and
updating the
information store
with ICN
secretariat
OFT
Seek permission
from respondents
to the Market
Studies Project
Questionnaire
Annex to place
individual
responses on
market studies
conducted over the
last five years in an
ICN information
store, located on
the ICN website.
Seek any
necessary
revisions to
material submitted.
OFT
To enable data submitted
in response to the Market
Studies Project
Questionnaire Annex to be
incorporated into an ICN
market studies information
store on ICN website,
accessible by all ICN
members.
End September
2009
Conference call
All
Discuss progress on
seeking consent
End September
2009
Create information
store
OFT, ICN
Secretariat
Conference call
All
Discuss progress on
creation of information
store
Mid December
2009
Review information
store content
All,
including
NGAs
All
Allocation: [to be finalised]
January 2010
Discuss review of
information store content
End January 2010
Conference call
Prepare written
materials to
describe
information store
functioning for
submission to
conference
October to Mid
December 2009
OFT
February 2010
4
Prepare
conference
presentation
materials
Road-test
information store
electronically, and
incorporate any
revisions
To be
allocated
February 2010
OFT, ICN
Secretariat,
NGAs
February 2010
Conference call
All
Submit written
materials about
information store to
conference
OFT
March 2010
Submit conference
presentation
materials to
conference
To be
allocated
March 2010
Launch information
store prior to
conference
ICN
Secretariat
March/April 2010
Conference
All
Last week of April
2010
Discuss written materials
to describe information
store for submission to
conference, conference
presentation materials, and
progress on road test
5
End February 2010
Annexe to ICN Market Studies Questionnaire: Market Studies Summary Table
Please insert below details of your Authority’s market studies, conducted over the last three
years. Please use one line to record the details of each market study.
Market
Assessment of Outcomes 1
UK
1.
Doorstep Selling

No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
4
Government postponed
implementing
recommendations because
of forthcoming EC
legislation: the Unfair
Consumer Practices
Directive. This has now
been implemented in UK
law, and some of the
recommendations have
been met.
Super-complaint (formal complaint
from consumer body designated to
complain)
To investigate what goods and
services are commonly sold in the
home, problems experienced by
consumers buying this way and why
problems are associated with some
products and services but not
others. To carry out case studies in
some areas, such as home
6
Market
Assessment of Outcomes 1
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
improvements and assistive
products for people with disabilities,
examine the role of credit and look
at the range of statutory and
voluntary safeguards for consumers.
Dec 2005/19 months
£2.4billion
UK
2.
Public Subsidies
6

We recommended a
practical framework by
which UK government
departments and agencies
can identify the costs and
benefits of a proposed
subsidy, including its
potential impact on
competition. This was
Internal competition concerns
To consider the effects on
competition of Government
subsidies given to private business.
Jan 2006/21 months
7
Market
Assessment of Outcomes 1
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
incorporated into UK
government policy
guidance (the Green
Book).
£6 billion
Our proposals to the
European Commission for
reforming state aid controls
to avoid distorting
competition were influential
and cited in a number of
EC papers.
UK
3.
Opium Derivatives
2

Government has not to
date taken forward OFT’s
recommendations that it
should take into
Internal concerns – OFT review of
statutory undertakings
8
Market
Assessment of Outcomes 1
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
consideration competition
issues for the purposes of
devising future licensing
policy for opium
derivatives.
To review existing undertakings in opium
derivatives sector and also examine
Government policy in respect of the
licensing of imports for opium derivatives
Mar 2006/20 months
£31 million
UK
4.
Groceries
4

We referred the groceries
market to the Competition
Commission to investigate
in a formal 2-year market
investigation.
Initially an internal OFT review of
statutory undertakings put in place by the
Competition Commission, the findings of
the review were challenged in the court
by a third party complainant, the
Association of Convenience Stores
The Competition
Commission has proposed
9
Market
Assessment of Outcomes 1
(ACS).
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
remedies to address 1.
local market power, by:
- removing/releasing
restrictive covenants and
exclusivity agreements
affecting grocery retailing
- introducing a competition
test into local planning
decisions
and 2. supply chain
practices by means of a
new code of practice
governing supermarkets’
relationships with their
suppliers.
To examine the market afresh following
the ACS's successful challenge of OFT’s
August 2005 decision. In particular to
consider whether the adverse effects on
competition found by the Competition
Commission in 2000 (below cost selling,
price flexing, and buyer power) still
existed and to examine whether any
other features prevent, restrict or distort
competition
May 2006/6 months
£123.5 billion
Tesco has appealed the
competition test in the
planning decisions remedy
– on the basis that the
10
Market
Assessment of Outcomes 1
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
remedy is disproportionate
to the level of harm
identified. This will delay
implementation of the
remedy for some time.
UK
5.
School Uniforms
3

Competition concerns – internal and
raised in complaints
OFT worked with the
Department for Children,
Schools and Families
(DCSF).
The study was prompted by
complaints from parents regarding
lack of choice and high prices/poor
quality when schools restricted the
supply of uniforms to particular
retailers through exclusive contracts,
as well as from retailers claiming
OFT sent a letter to all
schools in January 2007
reminding them that
expensive, exclusive
agreements may be
subject to a competition
investigation.
11
Market
Assessment of Outcomes 1
that these arrangements foreclose
the market to them. Self supply of
uniforms from schools also provoked
complaints.
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
This message was
repeated in DCSF
guidance: "Schools or
retailers that have
exclusive contracts with
suppliers may in principle
be subject to enforcement
action under Chapter I of
the Competition Act 1998,
on the grounds that these
exclusive agreements may
restrict competition
between retailers to supply
uniform."
Sept 2006/3 months
£450 million
But the guidance is not
binding, and OFT cannot,
currently, prioritise taking
enforcement action.
12
Market
Assessment of Outcomes 1
UK
6.
Commercial Use of Public
Information
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
4

Recommended that public
sector information holders
(PSIHs) should:
1. make as much public
sector information
available as possible for
commercial use/re-use
2. ensure that businesses
have access to public
sector information at the
earliest point that it is
useful to them
3. provide access to
information where the
PSIH is the only supplier
on an equal basis to all
businesses and the PSIH
itself
Came out of complaints, including
about Ordnance Survey (the UK’s
publicly owned mapping agency) and
other public sector information
holders that were difficult to address
under the Competition Act 1998
(were the public sector bodies acting
as undertakings? how should
excessive pricing be measured?).
Looked primarily at central
government public sector
information holders (PSIHs).
Dec 2006/17 months
13
Market
Assessment of Outcomes 1
£500 million
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
4. use proportionate costrelated pricing and account
separately for their
monopoly activities and
their value-added activities
so that PSIHs can
demonstrate they are
providing and pricing
information fairly and in a
non-discriminatory manner.
Government is reviewing
the guidance applicable to
trading funds (a form of
public body that can earn
income). Its review
encompasses many of the
OFT’s recommendations.
Outcome as yet not known.
14
Market
Assessment of Outcomes 1
UK
7.
Pharmaceutical Price Regulation
Scheme (PPRS)
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
4

Recommended that the
current 'profit cap and
price cut' scheme be
replaced with a patientfocused, value-based
pricing scheme, in which
the prices the NHS pays
for medicines reflect the
therapeutic benefits they
bring to patients.
Internal competition concerns
To assess whether the PPRS
scheme is the most effective means
of securing value for money for the
National Health Service, whilst
offering appropriate incentives for
pharmaceutical companies to invest
in new and useful drugs for the
future.
PPRS now in the course of
renegotiation: interim
scheme in place until Dec
08. The government
rejected value-based
pricing, but is considering
ways to ensure access to
Feb 2007/17 months
£8billion
15
Market
Assessment of Outcomes 1
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
medicines reflects their
value to patients. Has
agreed measures to reduce
price of out of patent drugs
and action to give patients
faster access to new
drugs.
OFT’s report informed the
debate.
UK
8.
Payment Protection Insurance
5

Super-complaint (formal complaint
from consumer body designated to
complain).
We referred the PPI market
to the Competition
Commission to investigate
in a formal 2-year market
investigation.
Market study to examine in more
The Competition
16
Market
Assessment of Outcomes 1
detail:
1. the difficulties consumers face in
relation to getting information about
technical issues and alternative
suppliers
2. barriers to entry for stand-alone
PPI providers
3. variation in pricing in the sector
4. gross profit margins.
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
Commission is consulting
on possible remedies.
These include:
- information provisions to
increase customer search
and address the failure of
distributors to compete on
price
- measures to address the
point-of-sale advantage: a
prohibition on sale of PPI
at point of sale of the
credit product
- measures to address
barriers to switching,
including requiring PPI
policies to be renewed
annually, and an annual
statement of cost and
reminder of the right to
Feb 2007/17 months
£5.5 billion
17
Market
Assessment of Outcomes 1
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
cancel
- price caps to address
consumer detriment from
high prices.
It will shortly decide on
remedies and publish its
final report.
UK
9.
UK airports
6

We referred the supply of
airport services by BAA to
the Competition
Commission to investigate
in a formal 2-year market
investigation. BAA owns
three airports in the South
East (London Heathrow,
Gatwick and Stansted) and
two airports in Central
Internal competition concerns
OFT carried out a study with a view
to deciding whether or not to make a
market investigation reference. It
examined the scope for benefits to
arise from enhanced competition
between airports (e.g. via
18
Market
Assessment of Outcomes 1
divestment of airports) or from
enhanced competition within airports
(e.g. via divestment or long term
lease of terminals or runways within
an airport). It also looked at the
constraints which may limit
increased competition, such as
short-term capacity constraints,
longer-term planning restrictions,
price regulation and the restrictions
on trading of landing/take-off slots.
The geographic scope of the study
was the South East of England and
Scotland and the North of England.
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
Scotland (Glasgow and
Edinburgh).
The Competition
Commission is consulting
on possible remedies.
These include divestiture
(requiring the sale) of one
of Glasgow and Edinburgh
airports and one or more of
Heathrow, Gatwick and
Stansted airports.
In addition, the
Competition Commission is
likely to make
recommendations to
government to change the
regulatory framework for
airports in the UK.
Mar 2007/10 months
£2.3 billion
19
Market
Assessment of Outcomes 1
UK
10.
Internet shopping
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure

Recommendations to
Government for Changes in
the Law

Voluntary Business Action

Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
5
OFT concluded the market
was largely working well.
Own initiative – to investigate
concerns about levels of consumer
protection when shopping over the
internet.
It carried out a consumer
education campaign, and,
working with Local
Authority Trading
Standards services,
conducted a web sweep
checking for compliance
with consumer protection
law across a large number
of web sites.
Results suggested most
large online retailers were
complying with the
Distance Selling
Regulations and E-
Jun 2007/14 months
£21.4 billion
20
Market
Assessment of Outcomes 1
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
Commerce Regulations,
but there was room for
improvement in some
areas:
* 14% of sites did not
provide a physical address
as required
* 15% of sites did not give
information on the right to
cancel within 7 working
days
* 40% of sites did not
indicate that additional
charges would be added to
the price first shown.
The web sweep report was
published and sent to over
400 UK based internet
retailers to educate them.
21
Market
Assessment of Outcomes 1
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
Details of non-compliance
by overseas web sites
were sent to overseas
authorities.
UK
11.
Distribution of medicines in the UK
5

OFT recommended
changes to the PPRS so
that discounts currently
given in the supply chain
(12.5%) are instead
formalised in the
manufacturer's list price or
to have minimum discounts
to pharmacies agreed in
the PPRS (or tied into the
re-negotiation of the
Complaints, including under the
Competition Act 1998
To determine how recent and
proposed changes to distribution
arrangements may affect
competition, the NHS and patients.
The study focused on recent and
proposed decisions by
22
Market
Assessment of Outcomes 1
pharmaceutical suppliers to change
distribution arrangements, and the
implications of the introduction of
'direct to pharmacy' distribution
models.
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
same).
The Government agreed
that the recommendations
on changes to the PPRS
should be discussed as
part of the current PPRS
negotiations.
Dec 2007/8 months
£8 billion
Outcome still unclear, but
a good example of using a
market study to examine all
issues in the market where
competition enforcement
action would have been
premature – and would
have ‘stretched’ the
competition prohibitions.
23
Market
Assessment of Outcomes 1
UK
12.
Personal Current Accounts
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
OFT is in consultation with
the banks about voluntary
remedies to the problems
identified, but it is too soon
to say whether this will be
the outcome and whether
the outcome will be a
success.
Internal competition and consumer
concerns and external complaints.
Factors that influenced OFT's
decision to proceed were:
1. The significance of personal
current accounts to consumers and
economic growth
2. Complaints about the level and
incidence of current account charges
3. Low levels of price transparency
4. Limited extent to which
consumers help drive competition in
the provision of personal current
accounts.
The problems found were:
1. cross-subsidisation from
those consumers who incur
insufficient funds charges
to those who do not –
especially from ‘vulnerable’
low income and low
savings consumers to
higher income, higher
saving ones
2. a substantial
24
Market
Assessment of Outcomes 1
July 2008/16 months
No Problems Found
misalignment between
banks’ revenues and their
costs, which may lead to
inefficiency through under
or over consumption
3. lace of consumer
awareness and switching
on less visible elements,
providing banks with little
incentive to compete on
them, which may adversely
affect productivity in the
sector in the longer term.
£8.3 billion
UK
13.
Homebuilding
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
6


The OFT gave a largely
clean bill of health on
competition issues, but
found consumers can
experience a number of
Government: the Barker Review of
Housing Supply 2004
25
Market
Assessment of Outcomes 1
To understand constraints on the
ability of the market to deliver
sufficient quantities of cost-effective
high quality new houses, focusing on
two areas:
1. how competition and the planning
system affect the delivery of new
homes including:
* the extent of competition and
barriers to entry and expansion and
whether available land is being
effectively brought through the
planning process in a timely manner,
scarcity of key inputs and the effect
of landbanks and option agreements
* the level of consumer protection
and redress, including the role of
building regulation standards and
new home warranties
* the extent to which consumers
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
problems, including:
1. delays in moving in
2. faults in new homes,
and
3. issues around the sales
process such as
reservation fees, the clarity
of information provided to
homebuyers and
potentially unfair terms and
conditions in contracts.
Prior to publication of the
market study report, the
OFT was able to secure a
commitment from key
industry players to
introduce a voluntary code
of conduct and redress
scheme for consumers with
26
Market
Assessment of Outcomes 1
have power to drive competition
2. homebuyers' levels of satisfaction
with the new houses they purchase.
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
the aim that this is fully
operational by March 2010.
The OFT made a back-up
recommendation to
government to introduce a
statutory redress scheme,
if the code fails for any
reason.
Sept 2008/15 months
£45 billion
UK
14.
Sale and Rent Back
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
6


The OFT recommended
that government should
legislate to protect
consumers in this market,
since consumers who
choose sale and rent back
are often under
considerable stress, and
Government: the OFT's work was
announced in the 2008 budget
Sale and rent back arrangements
involve individual home owners
selling property at a discount in
27
Market
Assessment of Outcomes 1
return for the option to remain in the
home as a tenant. The OFT wanted
to look at the characteristics of the
product and the circumstances in
which the product was sold, and to
consider whether existing consumer
protection legislation is sufficient
and effective.
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
might not act rationally in
the face of greater
information.
Our report
recommendations were
well received by
government and
stakeholders, and the
government is taking
forward giving the
Financial Services
Authority powers to
regulate the sector to
increase professionalism
and provide access to
redress.
Oct 2008/5 months
Value not known
28
Market
Assessment of Outcomes 1
UK
15.
Scottish Property Managers
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Value of Sector
Consumer Education
End Date / Duration
Consumer Enforcement
Reason for stud y (What were
the problems)?
Competition Enforcement
Source of idea for study
Outcome still awaited
Own initiative, in discussion with
Scottish Consumer Council and in
response to consumer complaints.
To determine whether the market for
residential property management
services is working effectively. In
particular the study will assess the
current level of competition in this
sector and to investigate whether
the existing mechanisms through
which owners of flats in a block or
homes employ property managers to
look after common and shared
property (or communal land) give
rise to significant consumer
29
Reason for stud y (What were
the problems)?
End Date / Duration
Value of Sector
detriment.
Ongoing
Value not yet known
30
No Problems Found
Referral to Third Parties
Recommendations for
Changes to Government
Policy
Recommendations to
Government to Change
Market Structure
Recommendations to
Government for Changes in
the Law
Voluntary Business Action
Voluntary Business
Compliance
Business Education
Consumer Education
Consumer Enforcement
Competition Enforcement
Market
Assessment of Outcomes 1
Source of idea for study