Background to Parts 3 and 4 of the Act
138.The following paragraphs set out the wider context to the Parts 3 and 4 reforms and describe the main publicly funded competition functions and the main authorities that currently carry them out.
139.The Government’s response to the consultation “Growth, Competition and the Competition regime”(1), explains the proposals for reform of the competition framework included in Parts 3 and 4 of this Act.
140.The proposal to set up the CMA is part of a wider institutional reform which also clarifies responsibility for publicly funded consumer activities. These wider proposals are set out in the Government’s response to the consultation “Empowering and Protecting Consumers”.
141.Under the Government’s wider institutional reforms, the majority of functions of public enforcement of consumer rights will be carried out by trading standards, working in partnership with the CMA, which will have a clear focus on competition and markets. For this purpose, as well as its powers to address competition problems in a market, the CMA will have powers under consumer enforcement legislation to address features of a market which impact on consumer choice, even where competition is working well. Secondary legislation will deal with the transfers of these enforcement powers to the CMA.
142.The OFT’s responsibilities for consumer advice and education have been transferred to the Citizen’s Advice service through an Order made under the Public Bodies Act 2011 - The Public Bodies (The Office of Fair Trading Transfer of Consumer Advice Scheme Function and Modification of Enforcement Functions) Order 2013 (S.I. 2013/783). In addition, under this Order, Trading Standards are now responsible for most business facing consumer education activities.