The Competition and Markets Authority (CMA) has launched a new campaign to crack down on companies that form illegal cartels.
These cartels are formed by businesses that cheat their customers by agreeing not to compete with each other in order to keep their prices high. The practice stops ordinary people and other businesses from getting a fair deal as well as stifling competition.
The campaign, ‘Cracking down on Cartels’, will encourage people who have witnessed illegal activity to report it, by offering a reward of up to £100,000 as well as promising them anonymity.
“Cartels are both harmful and illegal, and the consequences of breaking the law are extremely serious,” explained Andrea Coscelli, Acting Chief Executive. “That is why we are launching this campaign – to help people understand what cartel activity looks like and how to report it so we can take action.”
CMA research found that – whilst most businesses have a shared ethical sense that conduct such as price-fixing is unfair or wrong – less than a quarter of businesses said they knew competition law well.
Businesses found to have been involved in illegal cartels can be fined up to 10% of their annual turnover, individuals can face up to five years in prison and directors can be disqualified from holding director positions for up to ten years. These can be reduced or eliminated altogether where a business or individual reports their involvement in a cartel and co-operates fully with the CMA’s investigation.
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