CC lifts Domestic Electrical Goods Order
1 Feb 2012
The Competition Commission (CC) has confirmed that it will now remove the Domestic Electrical Goods Order (the Order) (and certain associated undertakings).
This follows the CC’s provisional decision (PDF, 32 Kb) which was made at the end of last year. The decision to lift the Order will be effective from today.
The Order, which was introduced in 1998, prevented suppliers of goods such as televisions and washing machines from recommending resale prices or making agreements that restrict the resale prices of wholesalers and retailers, and from restricting or withholding supply from particular retailers.
In its final decision today, the CC has decided that a number of changes since the Order was introduced have significantly increased competition in the market and removed the need for the safeguards provided by the Order. The CC also considers that the Competition Act 1998 now provides an effective mechanism to address attempts to fix prices or restrict supply unfairly.
Notes for editors
1. The CC is an independent public body, which carries out investigations into mergers, markets and the regulated industries.
2. The Order was made in 1998 by the then Secretary of State for Trade and Industry in exercise of powers under the Fair Trading Act 1973. Under the Enterprise Act 2002 the power to vary or revoke the Order passed from the Secretary of State to the CC.
3. The CC will reach a decision on whether, by reason of any change of circumstances, the Order should be varied or revoked and/or certain associated undertakings should be released, varied or superseded.
4. In June 2011, the Office of Fair Trading recommended to the CC that the Order and associated undertakings should be lifted. The CC has been carrying out its own review since then.
5. Enquiries should be directed to Rory Taylor or Siobhan Allen on 020 7271 0242.