Let’s get started! The UK Competition and Markets Authority will get “long needed” post-Brexit powers.
THE UK’S competition watchdog is likely to receive new powers after Brexit, including the ability to penalize corporations that defraud customers.
The Competition and Markets Authority (CMA) will get new planned, streamlined, and stronger powers next week, according to Business Secretary Kwasi Kwarteng. Without having to go to court, the organization will be able to sanction firms directly for breaking consumer laws. The new proposals are meant to stimulate innovation and growth.
According to the Financial Times, under the present proposals, “companies that rip off clients with deceptive claims, unfair terms and conditions, or hard-to-exit contracts would be liable for fines of up to 10% of global turnover.”
The revisions came two years after Lord Andrew Tyrie, the CMA’s former chair, urged on additional measures to modernize the industry.
transforming the company into a consumer champion
“Radical reform of consumer protection in the UK is long overdue,” Mr Tyrie told The Financial Times in response to the latest ideas.
“These ideas have been in the works for almost three years…
For almost two years, I’ve been good to go in a detailed manner.
“We can only assess how much the consumer will benefit, how quickly, and, most all, the depth of the commitment to cultural change at the top of the CMA and Whitehall required to make them effective if we have the precise proposals in hand.”
Furthermore, the Business Secretary is considering permitting the CMA to employ interim remedies more widely in order to speed up enforcement operations.
This would allow the organization to intervene in harmful behaviors before a formal investigation is concluded.
“Under the proposed plans, the CMA could also accept binding, voluntary pledges from businesses at any point of its investigations, leading to faster results and reduced costs for both parties,” the Financial Times continued.
“We want a modernized competition watchdog that sets a gold standard worldwide,” one government official said.
“This means new sanctioning powers and faster processes to protect consumers while also assisting small firms to grow.”
The complete list of proposals will be released next week.