{"id":75783,"date":"2016-11-07T12:01:00","date_gmt":"2016-11-07T12:01:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=e4e3e5d2200cabbac62b6ca10351cf7d"},"modified":"2016-11-07T12:01:00","modified_gmt":"2016-11-07T12:01:00","slug":"press-release-cma-warns-online-sellers-about-price-fixing","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=75783","title":{"rendered":"Press release: CMA warns online sellers about price-fixing"},"content":{"rendered":"<div class=\"govspeak\">\n<p>In the build up to \u2018Black Friday\u2019, one of the busiest times of the year for online sales, the Competition and Markets Authority (<abbr title=\"Competition and Markets Authority\">CMA<\/abbr>) is using this opportunity to remind sellers that discussing and agreeing price levels with competitors is illegal, and can result in serious penalties.<\/p>\n<p>It goes hand in hand with the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> writing to a number of online companies which may be denying customers the best available deals and reminding them of their obligations under competition law. The <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> has also engaged with online marketplace providers which are helping make the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr>\u2019s advice available to online sellers.<\/p>\n<p>This follows the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr>\u2019s recent decision, in one particular case following an 8-month investigation, which imposed a <a href=\"https:\/\/www.gov.uk\/government\/news\/online-seller-admits-breaking-competition-law\">fine of over \u00a3160,000<\/a> on an online seller of posters and frames, Trod Ltd, for agreeing with a competitor, GB eye Ltd (trading as \u2018GB Posters\u2019), not to undercut each other\u2019s prices when selling on Amazon\u2019s UK website.  GB eye escaped a fine by reporting the cartel under the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr>\u2019s leniency programme.<\/p>\n<p>The <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> has produced information that includes an <a href=\"https:\/\/www.gov.uk\/government\/publications\/price-fixing-guidance-for-online-sellers\">at-a-glance summary<\/a> for online sellers that explains what constitutes \u2018price-fixing\u2019 and what they can do to avoid it. There is also a <a href=\"https:\/\/www.gov.uk\/government\/case-studies\/online-sellers-price-fixing-case-study\">case study<\/a> that provides more detail on how the 2 sellers in the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr>\u2019s recent investigation ended up breaking competition law.<\/p>\n<p>In the Trod\/GB eye case, both companies used automated re-pricing software to implement their agreement not to undercut each other\u2019s prices. In addition, the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> is warning software providers that they too risk falling foul of competition law if they help their clients use software to facilitate illegal price-fixing agreements, although that was not a feature of the Trod\/GB eye case.<\/p>\n<p>The campaign\u2019s key warnings are that online sellers should not:<\/p>\n<ul>\n<li>agree with their competitors what prices they will charge, or that they won\u2019t undercut each other on price<\/li>\n<li>discuss their pricing intentions or strategies with competitors<\/li>\n<\/ul>\n<p>Stephen Blake, Senior Director of the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr>\u2019s Cartels and Criminal Group, said:<\/p>\n<blockquote>\n<p>Online markets are a hugely valuable tool for consumers to shop around and find the best value products, making the most of effective competition. But these benefits for shoppers are put at risk if the suppliers seek to restrict competition between them.<\/p>\n<p>The <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> is strongly committed to tackling anti-competitive behaviour in online markets. Entering into agreements that limit price competition cheats consumers, is illegal and can have serious consequences for the companies and individuals involved.<\/p>\n<p class=\"last-child\">We recognise that the majority of online sellers want to comply with the law. As we enter the peak shopping months of November and December, sellers should make sure they have read our advice so they don\u2019t get caught out. The consequences for those who don\u2019t can be serious.<\/p>\n<\/blockquote>\n<h3 id=\"notes-for-editors\">Notes for editors<\/h3>\n<ol>\n<li>The <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> is the UK\u2019s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For more information on the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> see our <a href=\"https:\/\/www.gov.uk\/government\/organisations\/competition-and-markets-authority\">homepage<\/a> or follow us on Twitter <a rel=\"external\" href=\"https:\/\/twitter.com\/CMAgovUK\">@CMAgovuk<\/a>, <a rel=\"external\" href=\"https:\/\/www.flickr.com\/photos\/cma-gov-uk\/\">Flickr<\/a>, <a rel=\"external\" href=\"https:\/\/www.youtube.com\/channel\/UCja1TPKrUBUYqPXP8mRQEEQ\">Youtube<\/a> and <a rel=\"external\" href=\"http:\/\/www.linkedin.com\/company\/competition-and-markets-authority\">LinkedIn<\/a>.<\/li>\n<li>\n<p>If the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> finds that a business has broken competition law, the consequences can be serious and far-reaching:<\/p>\n<p>a) businesses can be fined up to 10% of their annual turnover<\/p>\n<p>b) company directors can be disqualified from managing a company for up to 15 years<\/p>\n<p>c) individuals personally involved in <a href=\"https:\/\/www.gov.uk\/cartels-price-fixing\/types-of-anticompetitive-activity\">cartels<\/a> can face up to 5 years in prison<\/p>\n<\/li>\n<li>The <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> has produced a <a href=\"http:\/\/www.gov.uk\/cma\/competing-fairly-in-business\">range of materials<\/a> intended to offer guidance to business on how to comply with competition law.<\/li>\n<li>The <abbr title=\"Competition and Markets Authority\">CMA<\/abbr>\u2019s investigation was launched in December 2015 with searches of Trod\u2019s business premises and the domestic premises of one of its directors.<\/li>\n<li>Trod Limited was <a href=\"https:\/\/www.gov.uk\/government\/news\/cma-issues-final-decision-in-online-cartel-case\">fined \u00a3163,371<\/a> for illegally agreeing with another online seller, GB eye Limited (trading as \u2018GB Posters\u2019), not to undercut each other\u2019s prices for certain posters and frames sold on Amazon\u2019s UK website<\/li>\n<li>The fine imposed on Trod is after deducting a 20% discount to reflect the resource savings to the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> as a result of Trod\u2019s admission and co-operation with the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr>\u2019s investigation. GB eye reported the cartel to the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> under the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr>\u2019s leniency policy and has not been fined.<\/li>\n<li>Amazon was not involved in the cartel and has not been investigated by the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> in relation to this matter.<\/li>\n<li>Anyone who has information about a cartel is encouraged to call the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr> cartels hotline on 020 3738 6888 or email <a href=\"mailto:cartelshotline@cma.gsi.gov.uk\">cartelshotline@cma.gsi.gov.uk<\/a>.<\/li>\n<li>For more information on the <abbr title=\"Competition and Markets Authority\">CMA<\/abbr>\u2019s leniency and informant reward policies, go to <a href=\"https:\/\/www.gov.uk\/guidance\/cartels-confess-and-apply-for-leniency\">leniency<\/a> and <a href=\"https:\/\/www.gov.uk\/government\/publications\/cartels-informant-rewards-policy\">rewards<\/a>.<\/li>\n<li>Enquiries should be directed to Simon Belgard (<a href=\"mailto:simon.belgard@cma.gsi.gov.uk\">simon.belgard@cma.gsi.gov.uk<\/a>, 020 3738 6472).<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The CMA has today launched a new campaign to ensure online sellers know how to avoid breaking UK competition law.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/75783"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=75783"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/75783\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=75783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=75783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=75783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}