 |
answer text |
<p>Statutory investigations by the Department of Trade and Industry (now Business,
Innovation and Skills) using Companies Act powers are confidential and their findings
cannot be disclosed outside strict statutory gateways.</p><p> </p><p>The Office of
Fair Trading (OFT) did not directly investigate the collapse of Scottish Power’s Power
Plan. In 2003 an investigation was undertaken by the OFT into the terms and conditions
used in contracts with consumers purchasing goods under the PowerPlan scheme sold
by Scottish Power plc. As a result a series of recommendations regarding those terms
and conditions were made to the companies who operated the scheme, and I understand
that the recommendations were implemented by the companies before they entered insolvency.</p><p>
</p><p>More generally, the OFT investigated the market for extended warranties in
the UK in 2002 and, having found that competition in the market did not appear to
be working effectively, referred the market to the Competition Commission (CC). Following
the CC’s report in 2003, the DTI implemented the Supply of Extended Warranties on
Domestic Electrical Goods Order which came into force in April 2005. The OFT undertook
a further study of the market for extended warranties in 2012.</p><p> </p><p> </p>
|
|
