home > publications > updates >

publications: updates & bulletins

OFT GETS SHIRTY WITH FOOTBALL PRICE-RIGGERS

As part of its high-profile investigation into football shirt price-rigging the Office of Fair Trading (OFT) has issued a notice to 10 companies stating that it intends to make a decision that they are guilty of fixing the price of replica football kits, and therefore infringing UK competition law. The 10 accused parties include such household names as Manchester United Football Club, the Football Association, Umbro, JJB Sports and Allsports.

JJB Sports and Manchester United sold football shirts for £39.99 each even though they cost as little as £7 each to make! The investigation kicked-off after supermarket chains Safeway and Tesco reportedly tried to sell the same shirts at a £29.99 and £19.99 respectively. The OFT claims that the alleged cartel was deliberately inflating the price of the football shirts to exploit the UK's £220 million football kit market. Often, the designs of these football shirts change three or four times a season, and thereby encourage football fans to spend £39.99 each time.

The accused parties now have an opportunity to make oral and written representations in response to the OFT's proposed decision. These will be taken into account before any final decision is made. Surprisingly, the OFT has agreed to hold a joint oral hearing after having originally refused such a hearing on the basis that it was an unusual case with a high number of participants. The OFT will question all the parties present at the hearing, but the parties will not be allowed to cross-examine each other's witnesses. However, the parties will receive advance details of each other's defences.

The football shirt investigation follows the OFT's recent high profile fines of £22.6 million handed to Argos and Littlewoods for price-fixing for childrens' toys. A similarly high fine is expected in the football shirts case.

key expertise

Geraldine Tickle
Partner
geraldine.tickle@martjohn.com

Martineau Johnson's publications are no substitute for taking advice before reaching a decision on your individual problems. If you would like any further information about any of the issues raised in our publications please email us at lawyers@martjohn.com.