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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.

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