‘Too much remains unsaid’ on Block Exemption – NFDA

The National Franchised Dealer’s Association has expressed concern that the decision to replace the current Block Exemption regulations with something broadly similar ‘may not go far enough to preserve current healthy levels of competition in relevant UK automotive markets’.

While the Association broadly agrees with the content of the revised rules, it fears that it may ‘leave too much unsaid.’

In the NFDA’s view, there is a disconnect between ‘current and imminent market realities’, such as the switch to the fixed price, so-called ‘agency model’ of selling  and the historic evidence base upon which new regulation has been proposed.

READ: CMAs Block Exemption Recommendations: IAAF response

Sue Robinson, NFDA Chief Executive said: “In our latest submission, the NFDA has commented on a range of issues regarding competition in the automotive sector. We have highlighted and made reference to market trends, outlined the possible implications of future sales models and made specific recommendations to be incorporated in the MVBEO and/or guidelines.

“Going forward, the NFDA will continue to actively engage with the CMA, DBT and other stakeholders over Block Exemption and the best ways of preserving healthy levels of competition in relevant UK automotive retail markets”.