Consumers Aims to afford some parity of power to consumers. KEY LEGISLATION: 1. Sale of Goods Act 2. Trade Descriptions Act 3. Fair Trading Act 4. Consumer Credit Act 5. Unfair Contract Terms Act 6. Consumer Protection Act Students need to appreciate the key responsibilities outlined in these Acts and how any dispute would be resolved.

Competition Policy Aims to: prevent unfair competition and to encourage fair play in the market place. Powerful firms may try to improve their position via entry barriers / restrictive practices / collusion or even price agreements. Competition policy aims to prevent this abuse of size &/or power. It aims to ‘protect the public interest’ and encourage productive efficiency. In the future, European competition policy will dictate what is acceptable. KEY LEGISLATION 1.Monopolies & Restrictive practices act (1948)- This established the MMC. To investigate monopolies (firms with a market share of >25% or have assets >£70m). Nowadays the parameters are that a firm is investigated if it is though to be ‘against public interest’. 2.Fair Trading act (1973)- Set up OFT which, headed by the DGFT refers cases to the MMC. Usually the threat is enough to prevent mergers. 3.Restrictive practices act (1976)- Requires firms to register agreements, which may restrict competition. The restrictive practice court provides a judgement. 4.Resale price act (1976)- Prevents suppliers and retailers enforcing a minimum price, BUT recommending a resale price is illegal. 5.Competition policy (1980)- Anti competitive practices made subject to investigation and ultimate prohibition.

The Impact of Competition Policy Competition policy is always controversial; some see it as an intervention, restricting market forces, while others see it as the only way of ensuring that competition occurs. ‘Public interest’ is very hard to define (a stakeholder question). Are all monopolies bad? What about the benefits gained from R&D, EofC, etc. It really is a question of Intervention vs. Laissez-faire’. General points: Firms try to avoid increases in legislation via self-regulation. For this to work they must be abreast or ahead of public expectations in order to make laws unnecessary. High profile firms are least likely to ignore legal requirements (reputations take years to acquire and minutes to lose). A firm’s culture is important. In the long term, legislation can affect culture, but in the short term culture is often more powerful than law in determining behaviour. Large firms often have ethical codes, which ensure compliance with the law is a bare minimum. Smaller firms depend more on attitudes of their owners.