CAMRA launches legal challenge to OFT
The Campaign for Real Ale (CAMRA) is calling on consumers to help fund a legal challenge against the Office of Fair Trading's (OFT) report that ruled out action against the beer tie.
CAMRA is pledging funds towards the process, but is depending on its membership to help raise more money to ensure the challenge stands the best chance of success.
In October the consumer group criticised the OFT for failing to protect consumers by taking no further action following its super-complaint.
Under the Enterprise Act 2002, CAMRA had until today to appeal the OFT's decision to the Competition Appeals Tribunal, and has now decided to do so.
"CAMRA has taken the decision to appeal due to the inability of the OFT to deal with the problems affecting the UK pub sector," said CAMRA chief executive Mike Benner.
"CAMRA's super-complaint to the OFT was based on securing a fair deal for the pub-goer, and building a sustainable future for Britain's pubs. However, we believe the OFT did not take reasonable steps to understand the pub sector, and more generally why over 50 pubs are closing per week across the UK.
"We've seen the consumer watchdog scrutinised in previous years with the success of the Association of Convenience Stores' appeal in 2005 in overturning the OFT's decision at Tribunal.
"Pending the success of our appeal, CAMRA remains optimistic of Government intervention or a referral to the Competition Commission for a full investigation into the UK pub market."
Benner told the Morning Advertiser that CAMRA has covered the initial cost of putting in the appeal and the group has no figure in mind for the final cost.
CAMRA added that Bob Young, a former member of the Monopolies and Mergers Commission and respected Principal of Europe Economics, has said the OFT's response was "as inadequate as CAMRA's super-complaint was compelling.
"The OFT has not seriously considered whether there is fair competition at a local level which ensures that consumers, or pub landlords for that matter, get the best deal. This is a critical shortcoming in the OFT's response to CAMRA."
A statement from the OFT read: "The OFT will carefully consider CAMRA's grounds of appeal when we have received these. The OFT anticipates defending this appeal and is confident that our analysis and conclusions in relation to CAMRA's super-complaint are robust."
From Tuesday 5 January 2010, CAMRA is calling on consumers to visit www.camra.org.uk and contribute to the 'Consumers v. OFT Pub Market Ruling' Campaign Fund.
