OFT aims to help competition victims
19 Apr 07
Consultation seeks views on private actions by those who lose out from illegal practices
Better redress for businesses and individuals harmed by breaches of competition law is being promoted by the Office of Fair Trading in a consultation paper just published.
The paper looks at the possibilities for consumers and businesses taking forward private actions for compensation, and sets out a number of principles and proposals aimed at ensuring greater compliance with the law and more effective remedies for breach.
According to the OFT, the loss caused to both consumers and businesses from infringements of competition can run into tens of millions of pounds in some cases. However, until now consumers have recovered virtually no compensation. Businesses also find it difficult to recover losses and to remedy the competitive disadvantage they may have suffered.
The OFT wants to enable victims to recover compensation, both as claims for damages on a stand-alone basis as well as in follow-on actions brought after public enforcement.
It also proposes that processes and systems should be available to encourage effective ways of resolving private actions, and to encourage settlement of cases without going to court or trial wherever possible.
The OFT hopes to make recommendations to the government following the outcome of the consultation. It will also respond to the European Commission's forthcoming white paper on damages actions for breach of EU antitrust rules.
Philip Collins, OFT chairman, said: "A more effective private actions system would promote a greater culture of compliance with competition law and ensure that public
enforcement and private actions work together to the best effect for business and consumers."
The consultation period will last for eight weeks and end on 13 June 2007. The discussion paper can be found at www.oft.gov.uk .