PRICE FIXING
Do you ever talk to competitors about prices? It can be very dangerous to do so. Even discussions about price which do not lead to an agreement about what you will each charge your customers can be an offence under the Competition Act 1998. Under the Enterprise Act 2002 price fixing can lead to jail sentences. In addition anyone who loses out financially can sue for damages for breach of the competition rules.
Anthony Heath a partner and head of our Commercial Litigation Department says:
"The rules apply to competitor agreements and also agreements with distributors. Distributors must be free to resell at whatever price they choose. In addition you can sometimes get caught by other provisions in a distribution agreement. The Office of Fair Trading has just received a complaint by internet sellers about Sony's new policy of charging those selling in shops less than on line resellers, although this has not yet been found to be illegal. The OFT has provisionally found that an agreement between fifty fee-paying independent schools to exchange detailed information about the fees that they intended to charge was in breach of competition law. It issued a statement of objections recently.
We can advise you on when your arrangements or agreements breach the UK or EU competition rules and how you can set up a compliance programme to ensure you do not breach the law.
Call Anthony Heath on 0117 9290451 or email aheath@metcalfes.co.uk for more information.
This press release summarises the law on issues which we believe may be of interest to your business. It is not a comprehensive review of the subjects and accordingly is published without responsibility for loss occasioned to any person(s) acting or refraining from action as a result of information published