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Trade News Archive 2009 January February March April May
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21st May 2009
OFT warned on newspaper distribution rules
The Association of News Retailing (ANR) has joined with the National Federation of Retail Newsagents to demand a full market investigation into the practices of newspaper and magazine wholesalers.
Responding to the Office of Fair Trading's (OFT) consultation on the matter, the retail groups suggested that self-regulation by suppliers without the threat of legal sanctions will leave retailers at a significant disadvantage.
Last month, the government ruled that wholesale suppliers will no longer be legally obliged to provide stores and newsagents with stock that they have ordered.
Furthermore, contract changes between publishers and wholesalers laid the groundwork for a de-facto duopoly in terms of newspaper and magazine supply, further reducing the amount of competition in the market.
Issuing a joint statement, the associations expressed concerns about the way in which the OFT has previously looked into the relationship between publishers, wholesalers and retailers.
In April, ANR managing director John Lennon warned: "Without a statutory obligation to supply, wholesalers may be tempted to price 'hard to serve' retailers out of the market by increasing their carriage charges to unacceptable levels."
(c) 2009
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