Copyright 2007 – Biz/ed Regulation and its Influence on Business Activity BTEC Business
Copyright 2007 – Biz/ed Why Regulate? Anti-competitive practices Unfair trading Misleading marketing
Copyright 2007 – Biz/ed Why Regulate? Bodies have been set up to prevent firms engaging in these activities Also, to protect other businesses and consumers from negative impacts
Copyright 2007 – Biz/ed Who Regulates? The Office of Fair Trading can refer cases of uncompetitive practices to... The Competition Commission - used to be called Monopolies and Mergers Commission Advertising Standards Authority regulates non-broadcast adverts
Copyright 2007 – Biz/ed Regulation Law The main legislation is the Competition Act 1998 and The Enterprise Act 2002 It follows the provisions of European Community law It grants new powers to authorities to ‘police’ anti-competitive activity Also allows for damages to be sought by firms and consumers
Copyright 2007 – Biz/ed More on the Regulators The Competition Commission: Independent public body Makes in-depth enquiries into mergers and markets In 2004, major enquiries were carried out into the sale by Morrison's the grocers of stores to Waitrose and Sainsbury's
Copyright 2007 – Biz/ed More on the Regulators Advertising Standards Authority: Independent body It administers the British Code of Advertising, Sales Promotion and Direct Marketing In 2005, it upheld objections to campaigns by the David Lloyd Leisure group and SkyEurope Airlines
Copyright 2007 – Biz/ed More on the Regulators The Office of Fair Trading: Advises firms on how to comply with the law Upholds consumer rights Ensures that firms compete fairly In 2005, the areas investigated included residential care homes, the impact of public subsidies and Internet spam scams
Copyright 2007 – Biz/ed For More Information Visit the Regulators’ Web sites at: commission.org.uk