Enforcement

This is an explanation of our consumer protection enforcement principles

The OFT has wide ranging duties and functions in relation to Consumer Protection. The OFT takes a risk based, intelligence led approach to enforcement using all its available tools in innovative and holistic ways to address market malpractice. These tools include targeted enforcement, the encouragement of self-regulation, liaison with private industry and other regulators to encourage positive change and consumer and business education initiatives. It is also has a responsibility to supervise the Estate Agents Act.

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Enforcement policy

The Consumer Protection from Unfair Trading Regulations (CPRs) and the Consumer Credit Act 2006 have made significant changes to the body of UK consumer protection law. Together with the Unfair Terms in Consumer Contracts Regulations 1999 and the Enterprise Act 2002, they mark a fundamental move away from prescriptive regulation towards a principle-based consumer protection regime which encourages targeted, risk-based enforcement geared to the efficient operation of the market. At the same time, they also increase the range of enforcement tools available to enforcers, strengthening investigative powers and enabling OFT to take criminal proceedings and to seek financial penalties, alongside existing civil enforcement and compliance tools.

At the same time, other new legislation has taken forward the Government’s better regulation agenda requiring regulators to have regard to principles of good regulation. 

In the light of these changes, and as a means of better articulating our established commitment to good regulatory practice, OFT reviewed its consumer protection enforcement methods and has revised its overall statement of enforcement principles.

Download Statement of consumer protection enforcement principles (pdf 263kb).

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Estate agency

We have ongoing monitoring and enforcement obligations under the Estate Agents Act 1979. Under Part 9 of the Enterprise Act 2002 we are unable to disclose any details of ongoing cases.

Information on this website regarding estate agency includes:

• what estate agents must do to comply with the Estate Agents Act
• Estate Agents Redress Schemes
• making a complaint about an estate agent.

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Consumer protection enforcement

The main tool used to ensure compliance with the law is the Enterprise Act 2002.  This allows the OFT to seek changes in trader behaviour that contravenes consumer protection legislation. Part 8 of the Enterprise Act 2002 gives us and other enforcers, such as Trading Standards Departments, the power to enforce a wide range of consumer protection legislation including:

• Consumer Credit Act 1974
• Estate Agents Act 1979
• Unfair Contract Terms Act 1977
• Control of Misleading Advertisements Regulations 1988
• Sale of Goods Act 1979
• Supply of Goods and Services Act 1982, and 
• Consumer protection (Distance Selling) Regulations 2000.

Part 9 of the Enterprise Act 2002 restricts the disclosure of details surrounding cases under Part 8 of the Enterprise Act. View cases where we have taken action under Part 8.

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Payment Services Regulations (PSRs)

The Payment Services Regulations originate from the Payment Services Directive. The Directive had the aim of achieving a Single Market in retail payment services which would provide fair and open access to payments markets, and increasing protection for consumers.

The OFT is responsible for enforcing Part 8 of the PSRs. Part 8 concerns access to payment systems in the UK. OFT does not have a role in either the authorisation regime or the conduct of business rules.

Download Questions and answers on OFT's role in enforcing Part 8 of the Payment Services Regulations (pdf 77 kb).

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