Franking Machines and the Office of Fair Trading

In 2005, franking machine manufacturers gave undertakings to the Office of Fair Trading (OFT) that opened up the UK market. They agreed to allow more suppliers, third-party maintenance and inspection, independent ink cartridge supply, and clearer published pricing – giving customers far more choice and lower running costs.

Background to the OFT undertakings

The Office of Fair Trading worked with Royal Mail over several years to give customers more choice over who supplies their franking machine, without expensive rental, service contracts and high running costs.

What manufacturers agreed to do

In 2005 manufacturers gave undertakings to the OFT which were to:

1. open up access to the market for more franking machine suppliers, with better price information for customers about the cost of franking machines and their maintenance;
2. allow a greater choice of after-sales service and maintenance suppliers by removing restrictions on third-party supply of maintenance services, and by making it easier to become an authorised third-party maintainer and inspector;
3. increase scope for third-party supply of new and second-hand franking machines;
4. remove some restrictions on the independent supply of ink cartridges, allowing a greater choice of ink cartridge suppliers.

What manufacturers must publish

Each manufacturer is also to publish on its website:

1. its current charges for maintenance and, to the extent not covered by any maintenance contract, for the supply of postal rate chips;
2. the current price for its ink cartridges;
3. the current price of its inspection and recrediting services; and
4. the level of usage typically obtained from each model of ink cartridge, according to an appropriate measure.

Some manufacturers have been slow to comply with these undertakings, and some do not make the information easy to find on their websites. Mailcoms is only too pleased to help in this area. View our comparison table of the most popular franking machines in the UK market and all the costs associated with them – most entries also link to the relevant information on the manufacturer’s website.

At Mailcoms we have nothing to hide and are proud to be one of the most transparent franking machine suppliers around.

The Office of Fair Trading wrote to us quoting:

“It is pleasing to hear that you are working to offer more choice and lower prices. Of course we recognise that it is a niche market and we cannot therefore expect change to happen overnight. Also, especially given the markedly lower prices and running costs you offer, you can expect Neopost and Pitney Bowes to target your current and prospective customers quite aggressively in order to try to secure/retain their business – and maybe to reduce their own prices.”

Frequently asked questions

What were the 2005 OFT undertakings on franking machines?

In 2005 manufacturers gave undertakings to the Office of Fair Trading to open the market to more suppliers, allow third-party maintenance and inspection, increase third-party supply of machines, and remove restrictions on independent ink cartridge supply.

Can I use a third-party company to maintain my franking machine?

Yes. The OFT undertakings removed restrictions on third-party maintenance and made it easier for companies to become authorised independent maintainers and inspectors.

Can I buy franking ink cartridges from an independent supplier?

Yes. The undertakings removed some restrictions on the independent supply of ink cartridges, giving customers a greater choice of suppliers.