Christmas hamper schemes including Farepak Quick Facts
Christmas hamper schemes protection
An industry-led scheme, to provide better safeguards for consumers' pre-payments, has been unveiled by the Government. The scheme is designed to protect customers by ring-fencing payments made into accounts controlled by independent trustees - similar to the scheme that protects National Lottery prize money.
In addition, Government is working with the industry to ensure these arrangements are monitored by a new trade body - the Christmas Pre-payments Association - which will oversee the establishment and operation of these accounts.
On 13 August 2007, Park Group, the largest hamper company, announced that its protection scheme for customers’ payments has come into effect.
Companies Investigation
Farepak Food and Gifts Ltd. went into administration on 13 October 2006. The then Secretary of State for Trade and Industry announced that the Department’s Companies Investigation Branch is conducting a confidential investigation into the circumstances surrounding the failure of Farepak. Officials will seek to interview whomever they consider can assist them in their inquiries. The Companies Act does not allow the results of investigations of this kind to be made public, but any evidence pointing to improper conduct on the part of anyone involved may be passed to regulators or prosecuting authorities.
Administrators Report
The administrators are required to report to the Secretary of State any findings in relation to unfit conduct. Their findings will be considered alongside the report from Companies Investigation Branch. If the Secretary of State concludes that anyone is not a fit person to be a director, he may seek their disqualification for a period of up to fifteen years.
OFT/FSA Report
At the time of the Farepak collapse the then Minister for Trade, Investment and Foreign Affairs, the Rt Hon Ian McCartney MP, asked that the Office of Fair Trading (OFT) work with the Financial Services Authority (FSA) and DTI officials to look at the regulatory framework in which Farepak operated, and consider options to address any issues raised.
OFT’s report has been received and the wider issues will be considered in due course.