CAMRA: OFT has failed consumers

CAMRA has slammed the Office of Fair Trading (OFT) for "failing to protect consumers" by taking no further action over the consumer group's super-complaint into the beer tie.

It is now urging the government to step in and refer "unfair tie arrangements" to the Competiton Commission.

Mike Benner, CAMRA's chief executive, said: "We do not accept that there is sufficient competition between pubs or adequate consumer benefit from competition and choice within this sector.

"The OFT decision fails to address the legitimate concerns raised both in our super-complaint and the BEC report and does nothing to address the imbalance in the landlord/ lessee partnership which is leading to higher prices, less choice and weak investment in pubs."

After a 90-day investigation the OFT decided the beer tie did not have a detrimental impact on pub customers and declined to take any further action.

Benner added: "It is difficult to see how the OFT can argue that competition is working well in the pubs sector when demand is falling, yet prices are rising. Urgent action is now required by government to stem the flow of pub closures, build a sustainable future and ensure that consumers get a fair share of the benefit from tied agreements as demanded by competition law."

"There simply cannot be effective competition between all pubs when many pub landlords are placed at a huge disadvantage, by paying wholesale beer prices that can be around 50p a pint greater than their free of tie competitors."

Benner added: "The Business and Enterprise Select Committee have been proven correct in the view they expressed early this year that an OFT investigation would not be satisfactory and that the government should now assume responsibility."