Office of Fair Trading says no to new industry super complaint probe

The ruling comes after Justice for Licensees (JFL) submitted evidence claiming the OFT should reinvestigate the claims that rents and beer prices charged by pubcos were putting tenants out of business and damaging choice for customers.

JFL believes that the “competitive position of the lessees is being compromised” by the pubco strategy, resulting in sales and margin losses for the lessee and pubco. “We believe that this may well fall foul of the common man on the street’s perception of a fair and competitive business,” said JFL.

It added: “Considering inflated product price lists, which are not offset by lower rents, supported by ambiguous business benefits, we believe the OFT analysis may well be flawed in today’s market and as such warrants further investigation.”

Absence of evidence​

The CAMRA super complaint was launched in 2009. The OFT dismissed it, but was forced to look at the issue again after CAMRA appealed. In 2011, it dropped the super complaint because it wanted its beer tie lobbying to focus on Government and MPs.

An OFT spokesman said: “The OFT will consider new evidence of competition concerns, as we do in all cases. But, in the absence of evidence that competition issues in the sector are leading to consumer detriment, we do not currently intend to devote further resource to investigating the issues.”

JFL said it welcomed the OFT’s comments that it is “open” to considering further evidence.

“[We] look forward to furnishing the OFT with further evidence.”