Over the past few years stories have been circulating on the subject of retailers insisting on selling products 2.5 times over the wholesale price set by brand owners, even though this practice is illegal and amounts to retail price maintenance.
The government changed the law a few years ago to introduce penalties for those who infringe competition law, with the resulting penalties known to be the toughest within the European Union (EU).
During the summer of 2003, the Office of Fair Trading imposed new penalties, which resulted with a £16 million fine being imposed on ten companies, who were engaged in a price-fixing cartel concerning the sale of Manchester United and England replica football shirts back in 2000-2001.
Out of the ten companies JJB Sports emerged as one of the guilty parties with a £6.7 million fine. The sports retailer tried to appeal the amount of the find but their application for an appeal to the House of Lords was refused ten days ago.
Consumer watchdog Which? are involved in the situation and are planning to bring a damages claim on behalf of the consumers who bought these over-priced replica shirts .
One possibility of the outcome is that JJB Sports will be ordered by the courts to refund all consumers £20.00, the difference between what the replica shirts should have retailed for in the absence of the cartel and the hugely inflated price. Which? will divide any compensation awarded to those consumers who sign up and take action.
"If Which? decides to go ahead with its claim, this will be the first time that an action of this type has been brought in relation to an infringement of competition law in the UK," commented Stephen Sidkin, a partner in solicitors firm Fox Williams LLP.
Mr Sidkin added, "Actions like these are more common in the US where private organisations (rather than governmental organisations) take the initiative in seeking consumer redress. If Which? succeeds in its action it is likely to cause a number of fashion companies which have engaged in anti-competitive activities to think long and hard about their own exposure."
| solictorsonline news |
|---|
| Legal Ruling Constrains Libel Lawyers - Tue, 09 Mar 2010 |
| Law Firm Shifts to Holistic Bonus System - Thu, 04 Mar 2010 |
| Class and Costs Obstructing Underprivileged Solicitors - Tue, 02 Mar 2010 |
| More News |