The Live Wire



Press Release

BRC: OFT MASTERCARD DECISION NOT GOOD ENOUGH

06 September 2005

Responding to the MasterCard decision made today by the OFT, BRC Director General Kevin Hawkins, said:

"The BRC welcomes the long-awaited decision by the OFT that the way in which the MasterCard Members' Forum set the interchange fee from 1st March 2000 to 18th November 2004 infringed the Competition Act. This vindicates the complaint initiated by the BRC in October 2000 and pursued by the Consortium since then.

"We are, however, surprised and disappointed by the disclosure that the arrangements for setting the interchange fee were changed in November 2004, obviously with the knowledge of the OFT.This lack of transparency suggests that the procedure is flawed. BRC members have seen no resulting benefit to themselves or their customers following this action.

"While the OFT appears to believe that these arrangements, like those which preceded them, are in breach of the Competition Act, the prospect of an appeal by MasterCard against the OFT's decision opens up the likelihood of another protracted enquiry. In the meantime, UK consumers will continue to lose out.

"We are also disappointed by the OFT's refusal to require MasterCard to pay compensation in respect of its illegal practices from March 2000 to November 2004. The cost of these practices to the consumer in higher prices is conservatively estimated at £500 million. Retailers will be considering their position regarding a possible appeal on this issue."



Press releases, papers and documents published on this page are the intellectual property of an organisation unrelated to Central Lobby. We promote their parliamentary and political campaigning activities as they are subscribers to the Central Lobby service.

As such, Central Lobby does not edit, endorse, or attempt to balance the opinions expressed on this page. The content of press releases and other such types of content are the responsibility of the originating organisation.

British Retail Consortium

More from Dods

© Dods Parliamentary Communications Ltd