01/08/2003
Man Utd among those fined for price fixing on kits
Ten businesses, including Manchester United football club, have been fined a total of £18.6 million by the Office of Fair Trading (OFT) for fixing the price of Umbro replica football kit.
The OFT said agreements between some retailers set the prices for the top-selling short-sleeved adult and junior shirt of the England team and for Manchester United football club. Other agreements involved the short-sleeved adult and junior Chelsea, Glasgow Celtic and Nottingham Forest shirts or the entire England replica football kit.
Most of the agreements covered key selling periods such as the launch of new kits or England's participation in Euro 2000.
The businesses fined are: JJB Sports (£8.373m); Umbro (£6.641m); Manchester United (£1.652m); Allsports (£1.35m); the FA (£198,000 reduced to £158,000 by leniency); Blacks (£197,000); Sports Soccer (£123,000); JD Sports (£73,000); Sports Connection (£27,000 reduced to £20,000 by leniency); and Sportsetail (£4,000 reduced to nil by leniency).
In 2000 and 2001 most retailers charged just under £40 for adult short-sleeved England shirts and just under £30 for juniors. An OFT random shopping and telephone survey found a wide variety of prices for the 2003 England shirt on its launch – prices ranged from £24 to £40 for adult England short-sleeved shirts and £18 to £30 for the junior version.
John Vickers, OFT Chairman, said: "The fines imposed reflect the seriousness of the price fixing in this case. Since we launched our investigation the prices of replica football shirts have fallen and consumers can now shop around and get a better price."
The OFT may impose a penalty of up to 10 per cent of UK turnover for a maximum of three years for infringement of the Competition Act 1998.
The OFT's random shopping and telephone survey involved visiting nine retailers on 2 and 3 April 2003 (the England shirt was launched on 2 April 2003) and phoning nine retailers around the country on 3 April 2003. The OFT also noted the order price for the England shirt on five different retail websites from 26 March to 3 April 2003.
(GMcG)
The OFT said agreements between some retailers set the prices for the top-selling short-sleeved adult and junior shirt of the England team and for Manchester United football club. Other agreements involved the short-sleeved adult and junior Chelsea, Glasgow Celtic and Nottingham Forest shirts or the entire England replica football kit.
Most of the agreements covered key selling periods such as the launch of new kits or England's participation in Euro 2000.
The businesses fined are: JJB Sports (£8.373m); Umbro (£6.641m); Manchester United (£1.652m); Allsports (£1.35m); the FA (£198,000 reduced to £158,000 by leniency); Blacks (£197,000); Sports Soccer (£123,000); JD Sports (£73,000); Sports Connection (£27,000 reduced to £20,000 by leniency); and Sportsetail (£4,000 reduced to nil by leniency).
In 2000 and 2001 most retailers charged just under £40 for adult short-sleeved England shirts and just under £30 for juniors. An OFT random shopping and telephone survey found a wide variety of prices for the 2003 England shirt on its launch – prices ranged from £24 to £40 for adult England short-sleeved shirts and £18 to £30 for the junior version.
John Vickers, OFT Chairman, said: "The fines imposed reflect the seriousness of the price fixing in this case. Since we launched our investigation the prices of replica football shirts have fallen and consumers can now shop around and get a better price."
The OFT may impose a penalty of up to 10 per cent of UK turnover for a maximum of three years for infringement of the Competition Act 1998.
The OFT's random shopping and telephone survey involved visiting nine retailers on 2 and 3 April 2003 (the England shirt was launched on 2 April 2003) and phoning nine retailers around the country on 3 April 2003. The OFT also noted the order price for the England shirt on five different retail websites from 26 March to 3 April 2003.
(GMcG)
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