UK regulator announces changes to white goods rules

Post by Tom on 22nd December 2011 in

UK regulator announces changes to white goods rules

The Competition Commission has said it plans to abolish a number of rules affecting the sale of white goods in the UK.

The organisation, which carries out investigations into mergers, markets and regulated industries, said in a statement today that it has decided to "provisionally" remove the Domestic Electrical Goods Order.

The announcement means that suppliers of items such as fridges and televisions will now be able to recommend resale prices to wholesalers and retailers, and enter into agreements with them which restrict the resale price of goods. The removal of the Order, which was made in 1998, will also allow firms to restrict or withhold the supply of goods from certain retailers.

The Competition Commission said that because of increased competition in the marketplace, the order was no longer relevant.

Roger Witcomb, chairman of the Competition Commission, said: "The concerns that led to the Order were in part related to a market with a limited number of large retailers and suppliers.

"Since then there has been significant entry and expansion from grocery retailers, department stores and online retailers and also from new suppliers such as Samsung, LG and Beko."

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