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The OFT today issued a Statement of Objections alleging that Pride Mobility Products Limited (Pride), a manufacturer of mobility scooters based in Bicester, Oxfordshire, and some of its retailers, have infringed competition law.

The OFT has provisionally concluded that the parties entered into agreements, or engaged in concerted practices, that prevented the UK-wide online retailers in question from advertising online prices below Pride's Recommended Retail Price (RRP) for certain models of mobility scooter. These practices may have limited consumers' ability to get value for money. 

The OFT's provisional finding is that these practices occurred over various periods in relation to different retailers between 2010 and 2012.

Louis Christofides, OFT Director, said:

'The internet is a vital tool for shopping around. We want people to be able to use the internet to find and compare dealers' actual retail prices, saving them time and effort in searching for the best offer. This is particularly important in the mobility scooters sector, where many customers may have difficulty getting out to the shops.

'If retailers are prevented from advertising their discounts online, consumers are significantly restricted from identifying and obtaining lower prices, and it is harder for innovative and efficient retailers to win new customers.'

The OFT's findings are provisional and no assumption should be made at this stage that there has been an infringement of competition law. The companies will now have an opportunity to respond to the Statement of Objections and the OFT will carefully consider any representations they make before deciding whether competition law has in fact been infringed.

NOTES

1. 1The UK-wide online retailers concerned are: Careco (UK) Limited (formerly Discount Mobility Direct Limited), Discount Mobility Plus Limited/Rutland Mobility Limited, Mobility 4 U Limited, MT Mobility Limited/Hooplah Limited, Robert Gregg Limited (trading as Mobility Warehouse), Hartmond, Milton Keynes Mobility Limited and Better Mobility Limited. Certain of those retailers also operate physical retail shops.
2. The models of Pride-branded mobility scooter covered by the OFT's investigation are: Colt Deluxe, Colt Executive, Colt Plus, Colt Twin, Colt XL8, Colt 9 and the Elite Traveller LX.
3. The OFT's market study on the mobility aids sector (2011) identified several areas of concern. It also identified remedies to help consumers get a better deal, including a call for businesses to display actual prices or price ranges so that consumers can shop around more easily and find competitive quotes. 
4. A Statement of Objections gives notice of a proposed infringement decision under the Competition Act 1998 to the parties involved. It sets out the facts on which the OFT relies, the objections raised by the OFT, the action(s) it proposes to take and the reasons for it. The parties then have the opportunity to make written and oral representations in response to the case set out by the OFT. Any such representations will be considered by the OFT before any final decision is made. 
5. The Statement of Objections will not be published. In accordance with the OFT's guidance on involving third parties in Competition Act investigations, any person who wishes to comment on the OFT's provisional findings, and who is in a position materially to assist the OFT in testing its factual, legal or economic arguments, may request a non-confidential version of the Statement of Objections by contacting the OFT no later than 15 October 2013.
6. The Chapter I prohibition of the Competition Act 1998 prohibits, among other things, agreements or concerted practices between undertakings that have the object or effect of preventing, restricting or distorting competition in the UK or a part of it and which may affect trade in the UK or a part of it.
7. The OFT's market study estimated that the value of the UK mobility aids sector in 2011 was between £430 million and £510 million. 
8. The OFT currently has 14 cases open under the Competition Act 1998.