Price Fixing - A Regulatory Lawyer's View

The Office of Fair Training (OFT)'s allegation that tobacco firms and supermarkets swapped pricing information should alert Yorkshire businesses to the potential dangers of discussing pricing strategies, according to regulatory expert Ed Conybeare of Shulmans Solicitors, pictured left.

"To what extent you may discuss your prices or pricing strategies with your competitors, customers or your suppliers needs to be addressed carefully to avoid falling foul of competition law; a small amount of time and cost spent with a regulatory lawyer ensuring your business understands what is acceptable is always a sensible investment" he said.

"Although the OFT's allegation involves the retail and manufacturing sectors, all types of businesses have to ensure that they are compliant with these laws, whether you are a house builder or a bank .    

"Essentially this investigation is about anti-competitive behaviour, not price-fixing.  It's a fairly rare form of breach of competition law - prosecutions are more likely to be linked to price-fixing cartels.  However, the consequences of prosecution are potentially huge as the OFT has sweeping powers to punish anti-competitive behaviour and fines can be up to 10% of annual turnover.  However, the good news for smaller businesses, is that the OFT tends to go for larger undertakings."  

For further details contact Edmund Conybeare on 0113 2977711  or by email at econybeare@shulmans.co.uk.

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