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The OFT yesterday published its Annual Report, including an estimate of the financial benefits of its activities to consumers.

The report shows that last fiscal year, on its competition and consumer work the OFT achieved an estimated benefit to consumers of £422 million, over eight times its cost to the taxpayer.

The OFT had three strategic objectives for 2012-13: High-impact enforcement to achieve compliance with competition and consumer law, influencing and changing behaviour in markets through advocacy and guidance, and improving organisational delivery and capability.

Pursuing these objectives, in the course of the year the OFT undertook a large and varied caseload under its competition, consumer and credit powers. Among the enforcement cases concluded were seven investigations under competition law and 22 investigations under consumer law. Under its credit powers, 44 licences were revoked or refused and, at the end of the year, 50 payday lenders were put on notice to improve their practices or risk losing their licences.

The OFT delivered 14 markets projects across a broad range of sectors, referring two markets to the Competition Commission for further investigation. The number of mergers examined this year remained high at 100, with 14 cases referred to the Competition Commission. Achievements included:

• Action on anti-competitive behaviour, including fining British Airways £58.5 million in the passenger fuel surcharges case for collusion with Virgin Atlantic over the pricing of passenger fuel surcharges. Fines over £2.8 million were also imposed in the Mercedes-Benz commercial vehicles case.
  
• Using consumer powers to tackle misleading practices and other consumer issues. These included securing binding commitments from 12 airlines to include debit card surcharges in their headline prices and from three retirement home groups regarding transfer fee terms as well as taking action to protect consumers purchasing mobility aids.
  
• Reviewing some of the most topical and important markets for UK consumers, from defined contribution workplace pensions and private motor insurance to dentistry and payday lending.
  
• Considering our first merger of NHS Foundation Trusts.

Philip Collins, OFT Chairman, said:

'Our work over the past year will benefit, among others, consumers visiting the dentist, moving into a retirement home, buying a mobility aid, taking out a payday loan and purchasing a flight.

'We have not hesitated to take robust action where necessary, delivering enforcement cases that make a real difference for consumers and the economy as a whole. Our credit work, in particular, has been very important over the year, as we have worked hard to protect some of the most vulnerable consumers in our society.

'We have also invested in improving our procedures, in particular on Competition Act cases, in the development of our staff and in preparing for the institutional changes that come into effect in April 2014'.

NOTES

1. The Annual Report was laid before Parliament on 27 June 2013. It is available from the OFT website or from TSO, PO Box 29, Norwich, NR3 1GN. Tel 0870 600 5522.
   
2. The £422 million figure is based on direct financial savings to consumers from the OFT's competition enforcement, consumer enforcement, mergers and markets work.
   
3. The OFT's 2012/13 Positive Impact Report, includes an estimate of the financial benefits of its activities to consumers.