ContractStore Legal Business Blog

112 construction firms have been accused of bid rigging by the OFT (Office of Fair Trading) in England. There are two main allegations. One is that they engaged in cover pricing – where one or more bidders collude with a competitor during a tender process to obtain a price or prices which are intended to be too high to win the contract. Cover pricing arrangements have previously been found by the OFT and the Competition Appeal Tribunal to be illegal and in breach of the Competition Act 1998 due to the restrictions on competition that arise.

In addition, a minority of the construction companies have been accused of entering into arrangements whereby it was agreed that the successful tenderer would pay an agreed sum of money to the unsuccessful tenderers (known as a

The OFT (Office of Fair Trading) has today published a report to measure the overall value of consumer detriment in the UK economy i.e. where a consumer suffers unfair treatment from its dealings with an organization. For every 1000 consumers interviewed, 542 problems were identified, and across the whole of the UK population this equates to an estimated 26.5 million problems over the last year.

The report was compiled using information from 10,000 consumers, and estimates the cost to consumers was around

The OFT (Office of Fair Trading) has issued High Court proceedings against a letting agent whose terms can potentially require landlords to pay the agent substantial sums in commission, where a tenant continues to occupy the landlord’s property after the initial fixed period of the tenancy has expired – even if the agent plays no part in persuading the tenant to stay, and no longer collects the rent or manages the property. The terms can also require the landlord to pay these sums after the landlord has sold the property as well as demanding commission where the landlord sells the property to the tenant, even where the agent has played no part in negotiating that sale.

The letting agent is Foxtons and the OFT’s action is for a declaration on the application of the Unfair Terms in Consumer Contract Regulations 1999 (UTCCRs) to certain terms in Foxtons’ lettings agreements with landlords. The OFT is also seeking an injunction against Foxtons preventing it from using the terms.

The action taken by the OFT is in response to consumer complaints. If successful in this case the OFT intends to enforce compliance with the law, as declared by the Court, throughout the letting industry wherever similar terms are being used.

Foxtons contends that its agreements with landlords are not unfair and continues to use these terms, and accordingly, the OFT has issued proceedings so the courts can decide the matter.