News: Contract Law
CRR review 'may lead to new contract training'
16 January 2009
A report by the Office of Fair Trading (OFT) has recommended contracts rights renewal (CRR) restrictions on ITV should be relaxed, putting legal training in the spotlight as the company may have to update its practices.
The organisation's consultation document suggests the Competition Commission should re-examine the arrangement to see whether the remedy is still needed.
CRR was imposed after the merger between Carlton and Granada and alters advertising costs in line with changes to the broadcaster's audience figures, serving as a way of preventing the firm abusing its dominant position in the market.
A spokeswoman with ITV "warmly welcomes" the ruling and says her organisation will examine the situation.
She comments: "We will now be studying the detail of the recommendations and will work constructively with the OFT during the public consultation as it formulates its final recommendations to the Competition Commission."
According to industry watchdog Ofcom, among the benefits conferred on advertisers through CRR is the right to renew their contracts on a rolling annual basis.
