Credit card charges In May 2006, the OFT investigated the charges being imposed on customers of
credit card companies. In its report, the OFT confirmed these charges were unlawful as they amounted to a penalty, rather than the actual losses suffered by the companies. It said it would be prepared to investigate any charge over £12 (£16 for
Egg credit card accounts) indicating that £12 would not be a "fair and acceptable charge" itself. The OFT said it would be up to a court to determine such an amount based on the established legal precedent that the only recoverable cost would be actual costs incurred, i.e.,
liquidated damages. The credit card companies did not produce evidence of their actual costs to the OFT, instead insisting their charges are in line with clear policy and information provided to customers. Charges have been as much as £38 per item, which campaigners argue is well beyond the cost of sending a computerised letter.
Deceptive websites In 2009, after customers complained to OFT about deceptive practices by two websites operated by a man in the state of California that misrepresented themselves as being British, it coordinated actions with the U.S.
Federal Trade Commission, which began
an enforcement action. Two years later a
consent decree required the companies to end those practices and represent their location honestly.
Debt management companies In September 2010, the OFT sent warnings to 129 firms after its review of debt management companies found widespread problems, with firms putting profits ahead of customer care. Since it issued that warning, 87 firms have surrendered their licenses.
Transfer of cash ISAs In March 2010, Consumer Focus submitted a super complaint to the OFT raising concerns that transferring cash ISAs were taking too long and there were arbitrary rules preventing transfers into some of the most attractive accounts and that interest rates were not sufficiently transparent. The OFT responded in June 2011, with a number of recommendations to ensure that transfers of cash ISAs work better and that there is greater transparency of interest rates. This included the following agreements from cash ISA provider to: • Comply with new industry guidelines to complete end to end transfers within 15 working days • Provide personalised interest rate information on cash ISA statements delivered in electronic and/or paper form
Reckitt Benckiser In April 2011, the OFT fined
Reckitt Benckiser £10.2 million after it found that it had abused its dominant position in the market for the
National Health Service (NHS) supply of alginate and antacid
heartburn medicines. The OFT found that Reckitt Benckiser abused its dominant position by withdrawing and de-listing Gaviscon Original Liquid from the NHS prescription channel in 2005.
Groupon In March 2012, the OFT accepted undertakings from "daily deals" company MyCityDeal, which trades as
Groupon, to change some of its trading practices following an OFT investigation. The investigation found widespread examples of Groupon's practices that breached consumer protection regulations. The OFT had specific concerns over practices involving reference pricing, advertising, refunds, unfair terms, and the diligence of its interactions with merchants. Groupon engaged openly and constructively throughout the investigation and signed undertakings that it will change its practices to comply with the law.
Hotel online booking In September 2012, the OFT commenced an investigation into the hotel online booking sector. The complainant, a small online travel agent, Skoosh, claimed that the hotels it bought room bookings from were under pressure from other resellers to maintain minimum prices. On 31 July 2012, the OFT issued a Statement of Objections against
Booking.com,
Expedia, and
Intercontinental Hotels. In the OFT's provisional view the parties had infringed competition law. In January 2014, the OFT accepted commitments proposed by the defendant parties in lieu of any fines. The OFT's Rasmussen acknowledged there was a chance the set up could lead to further monopoly, but he said the OFT would be monitoring movements in the market. In March 2014, the price comparison site,
Skyscanner, challenged the OFT's decision with the United Kingdom's
Competition Appeal Tribunal.
Supply of ICT to the public sector In a "parting shot", one week prior to the transfer of the OFT's responsibilities to the CMA, the Office recommended that an investigation into market conditions in the public sector ICT market should be undertaken. ==Reputation==