Clause 11 - Super-complaints to the OFT
Enterprise Bill
10:15 am
Mr Nigel Waterson (Eastbourne, Conservative)
I beg to move amendment No. 20, in page 5, line 12, at end insert—
'(3A) In the event that the OFT decides to take no action, and an undertaking has incurred costs as a result of the complaint, the consumer body which made the complaint shall bear the reasonable costs of that undertaking'.
With the help of the hon. Member for Hemel Hempstead and others, I shall try to be brief. Strong views exist on the issue and it is important to reflect both sides of the argument. The CBI believes that under the current system investigations by competition authorities often involve huge costs and other burdens on business. We developed that argument in a different context on Tuesday, so I need not labour the point.
Business is concerned, not unreasonably, that it may become enmeshed in a large Office of Fair Trading investigation into a company or a sector. The hon. Gentleman was probably right in hinting that it is more likely to be into a sector, but it is perfectly possible that an individual company will be responsible for a widespread abuse.
These matters can be long, drawn-out and expensive. Just because the OFT has to respond to the original super complaint within 90 or 60 days does not mean that it will not take a long time to reach a resolution, certainly if the activities of the Serious Fraud Office and others when dealing with competition are anything to go by.
The CBI believes that, where there is a lengthy and expensive investigation but a company is exonerated, there should be compensation. I know that it is stretching the hon. Gentleman's imagination a little to suggest that there are innocent companies out there and that companies will be exonerated on occasion.