Competition regulator set to launch reforms to beef up consumer protection
Consumer protection is set to be beefed up with bigger fines and disqualification for company directors under a new set of proposals to be announced tomorrow by the competition watchdog.
The chairman of the Competition and Markets Authority (CMA) Lord Tyrie will announce a set of proposed reforms at an event with the business secretary Greg Clark.
Read more: Watchdog may block Sainsbury's-Asda merger
Sky News reports the reforms will include tougher penalties for breaches of consumer law and making protection of consumers the regulator’s principal objective.
Other measures could include a reduction in the role of the Competition Appeals Tribunal and a stronger duty for the courts and the CMA to put consumer interests first.
The reforms could require fresh legislation and will be subject to a period of consultation.
The reform package follows last week’s tough response to the proposed merger between supermarkets Asda and Sainsbury’s which looks likely to kill the £12bn deal.
Read more: The competition watchdog is taking Viagogo to court
The CMA said that to merge the pair would have to sell-off hundreds of shops and said: "The CMA’s current view is that it is likely to be difficult for the companies to address the concerns it has identified."
And: “We have provisionally found that, should the two merge, shoppers could face higher prices, reduced quality and choice, and a poorer overall shopping experience across the UK.”
Former Conservative MP Tyrie was appointed to head the CMA in June.
He previously chaired the parliamentary commission on banking standards and served as chairman of the Treasury Select Committee from 2010 to 2017.
The CMA declined to comment.