Get listed in the Spick and Span Directory

General Cleaning Issues - Floorcare, car valeting, buying and selling businesses, pricing, staffing, market research, etc.

Worth knowing (price fixing penalties)

Posted by DP (DP), 14 October 2003
(I recently read in the Business Franchise magazine October 2003 the following)

The article states:

SME’s (small businesses) may be unwittingly contributing to the operations of cartels and price- fixing according to the Office of Fair Trading. The Enterprise Act 2002made it an offence to agree with competitors to fix prices, share markets, restrict production or rig contract bids. Firms operating in this way are part of a cartel. The OFT believes that many small companies are contributing to a cartel either unknowingly or under duress. For example, a sports-shirt manufacturer will withhold supplies to a small shop unless it agrees to sell goods at the manufacturers, recommended retail price.

and continues:

Yet a firm can be fined ten percent of its UK turnover for up to 3 years and any individual involved can face a prison sentence up to 5 years.

All accreditation to:  Business Franchise magazine October 2003
Dr Barrie Pennington. and Venture Marketing Group.


Worth knowing I think.



This page is a thread posted to the cleanitup forum at www.cleanitup.co.uk and archived here for reference. To jump to the archive index please follow this link.