Clause 11 - Super-complaints to the OFT
Enterprise Bill
6:30 pm
Miss Melanie Johnson (Parliamentary Under-Secretary, Department of Trade and Industry; Welwyn Hatfield, Labour)
The amendments would narrow the definition of a super complaint by placing the emphasis on conduct connected to breaches of chapter 1 of the Competition Act or article 81 of the EU treaty rather than broader problems in the market that may harm the interests of consumers. Our intention is to ensure that consumers receive better protection by enabling consumer bodies to complain about any market failure that causes significant harm to consumers. In order to do that, we need a broad definition of the circumstances in which a super complaint can be made.
Using the language of the Competition Act, as suggested in the amendments, would narrow the focus of the procedure to the potential investigation of anti-competitive agreements. The new super complaints procedure is intended to ensure that the OFT is made aware of as wide a range of markets that are not working well for consumers as possible–not just those markets where competition concerns arise. Taken by
itself, without amendment No. 17, amendment No. 18 would mark super complaints out as a preliminary to OFT action under its competition law powers, such as those under the Competition Act, or through a market investigation. It would not be allowed to act under its consumer protection powers.
Consumer bodies and anyone else who wants to complain about basic infringements of the Competition Act can already do so. Super complaints should not be limited to a preliminary to a particular type of competition investigation. They should be an open-ended vehicle for the OFT to launch investigations under any of its consumer and competition powers. By, effectively, excluding the possibility of a consumer-side action as a follow-up to a super complaint, the amendment perpetuates the division between the OFT's competition and consumer sides, which the Bill is trying to break down. The amendment would make it very difficult for consumer bodies to submit super complaints. As third parties, they are unlikely to know much about the agreements that firms have entered into between themselves.
The hon. Gentleman said that these were probing amendments. I hope that with that explanation I have encouraged him not to press them to a Division.