The OFT today advised the Competition Commission that the Domestic Electrical Goods Order and associated undertakings, which cover everyday goods such as televisions and washing machines, can be removed.
Following an investigation by the then Monopolies and Mergers Commission (MMC) in 1997, specific regulation was introduced to promote competition between retailers of domestic electrical goods, particularly by preventing suppliers from recommending resale prices or otherwise influencing retail pricing.
Today’s announcement follows an OFT review of the Order, which considered views from across the sector. The review found that since the Order was first introduced in 1998, there have been several significant developments which have led to improved competition and mean that the Order is no longer needed. These include new high street and online traders entering the market and consumers using the internet to compare prices. In addition, other competition legislation now provides an effective mechanism to address any future competition concerns of the type addressed by the Order should they re-emerge.
The Competition Commission will now consider the OFT’s advice, before reaching a conclusion on what should happen to the Order. Claudia Berg, Director in the OFT’s Goods and Consumer Group, said:
Quite what the implications are of this are, at this point in time, unclear however it looks on the face of it that Recommended Retail Prices (RRPs) are set to make a return to stores in the UK.