To protect the interests of consumers in the United Kingdom, the government created the Office of Fair Trading (OFT). This agency is the UK’s consumer and competition authority. The OFT is a non- ministerial government department, meaning that it is free from political influence and is theoretically unbiased and was created in 1973 in an era of unparalleled development and experimentation in both economic policy and economic thinking..
There are many ways the OFT can make markets work in the interest for consumers and to make sure that they have the widest choice possible across all the different sectors of the marketplace. These include the analyzing of complaints, and undertaking market studies to recommend if and when further action is warranted, focusing efforts and resources on behaviour that poses the greatest threat to consumer welfare, such as cartel activity and deceptive practices by rogue traders. Also, special attention is paid to problems that affect large numbers of people and to the needs of vulnerable consumers.
Prevention is always better than cure and with this in mind, the OFT equips consumers and businesses alike with the knowledge needed to protect themselves. Furthermore, the OFT achieves its aims through collaboration with others. Partners include sector regulators, Government, the courts, the Competition Commission, the European Commission, Local Authority Trading Standards Services, and businesses, consumers and their representatives .
Those found guilty of illegal business practices and infringe on competition law can be fined up to 10% of their annual turnover .b) With reference to actual cases of monopoly, merger or cartel type activity, explain how the agency came to its decision about the abuse of market power in such cases. ...