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Technical Notes for PSA 3 2003-06

URN No: 02/1613/A3

PSA Target 3. Place empowered consumers at the heart of an effective competition regime, bringing UK levels of competition, consumer empowerment and protection up to the level of the best by 2006, measuring the effectiveness of the regime by peer review and other evidence, to ensure a fair deal for consumers and business working in collaboration with the relevant regulatory agencies.

… an effective competition regime

Data
Survey of experts in the competition field, commissioned by the Consumer and Competition Policy Directorate of the DTI. Independent consultants will be commissioned to undertake the survey. They will build on the first peer review survey (www.dti.gov.uk/ccp/topics2/internationalpolicy.htm#peerreview) which was produced by PWC in 2001. The new survey will seek to develop the methodology further while retaining sufficient consistency to allow comparisons to be made.

The peer review will be conducted through identifying a group of experts, both in UK and abroad, who could give an objective assessment of, and will be asked to rate, the UK’s competition regime.

To the extent possible we will use the participants in the 2001 review, though our intention would be to expand the sample size. In conducting our survey, we will take account of independent surveys that rate the performance of competition agencies around the world, such as that published by the Global Competition Review, (Welcome to LBR).

The independent consultants and peers themselves will provide quality controls.

Timings
The next survey will be undertaken in the first quarter of 2004 and a further survey carried out in the first quarter of 2006

Territorial Scope
UK. The international comparison will include comparisons with the EU US, Germany, France and other leading OECD countries.

Success Criterion
An improvement in the UK’s ranking so that it is equal to that of the US and Germany. In the 2001 survey, the UK was ranked behind that US and Germany (who were jointly rated the best).

… consumer empowerment and protection

Data
Specially commissioned survey of UK consumers to be conducted by an independent market research company. The survey will ask questions to establish consumers knowledge of their rights in some representative transactions (eg the rights to return faulty electrical goods such as kettles) and knowledge of sources of consumer advice (eg awareness that they can obtain advice from Consumer Direct, local trading standards officers and the OFT amongst others) should they need it.

Quality control will be provided by the expertise of the consultants and the requirement to publish.

Definitions
Empowered consumers are aware of their rights or where to find out about them, are prepared to take action to enforce their rights to obtain redress and know how and when to seek assistance from government and other agencies. They play a key role in driving up the performance of business.

Timings
Survey at the beginning of the PSA period (April-June 2003) and at the end (April-June 2006) to measure improvement in empowerment.

Territorial Scope
UK.

Success Criterion
A significant  improvement by 2006 in all the empowerment and awareness measures chosen over levels founds in the baseline survey.