CAMRA - Office of Fair Trading Faces Legal Challenge From Consumers
CAMRA
is continuing to fight back against anti-competitive practices in the UK pub
market by issuing a legal challenge to the Office of Fair Trading’s decision
to reject its super-complaint submitted in July 2009.
To
appeal the decision, CAMRA has used its power under the Enterprise Act 2002 to
take the OFT’s decision to the Competition Appeals Tribunal for the equivalent
of a judicial review.
In
October, the OFT rejected CAMRA’s super-complaint on the grounds that consumers
benefit from a good deal of competition and choice in the pubs sector, although
the consumer group submitted contrary evidence.
CAMRA’s
super-complaint centred on the need to reform beer tie arrangements to prevent
large companies exploiting tie arrangements that prevent tied publicans from
buying beer on the open market at fair prices. CAMRA’s complaint highlighted
that the total cost to consumers as a result of inadequate competition could be
as high as £2.5 billion every year without even taking into account the
restricted choice of beers available and the closure of many valued community
pubs. More widely, the complaint hoped to secure a fair deal for the pub-goer,
and build a sustainable future for Britain’s pubs.
With
the inability of the OFT to recognise the problems highlighted by CAMRA, the
consumer group has issued a legal challenge using its own campaigning funds, but
is depending on consumers to back the appeal via donation to give it the best
chance of success.
From
Tuesday January 5th 2010, CAMRA will be launching the ‘Consumers
v. OFT Pub Market Ruling’ Campaign Fund
via its national
website, www.camra.org.uk.
On
submitting the appeal, Mike Benner, CAMRA Chief Executive, urged consumers and
trade bodies to get behind the Campaign Fund and support the appeal. Discussing
the reversal of the OFT’s decision, he said:
‘We’ve seen the consumer watchdog scrutinised in previous years with the success of the Association of Convenience Stores’ appeal in 2005 in overturning the OFT’s decision at Tribunal level. Pending the success of our appeal, CAMRA remains optimistic of Government intervention or a referral to the Competition Commission for a full investigation into the UK pub market.’