heres a link you like to read:
http://www.tradingstandards.net/pages/consumer.htm#comp
New Competition Act in force
This Act, which came into force on 1st March 2000 introduces new competition rules which prohibit agreements, business practices and conduct that damage competition in the UK.
The new rules are designed to ensure that UK businesses remain competitive. Complying with them will help to ensure that business is as competitive as it can be - good for businesses and good for consumers.
The Act has implications for businesses of all types and sizes - even sole traders. There is limited immunity from financial penalties for ‘small agreements’ and ‘conduct of minor significance’, but this does not extend to agreements to fix prices, nor cover the other consequences of infringement, such as agreements being made void and the possibility of being sued for damages. Moreover, the Director General has the power to withdraw the immunity in certain circumstances.
It is recognised, however, that the way in which small businesses choose to ensure compliance may reflect their size. In other words, smaller undertakings will not be expected to implement a formal compliance programme, but they will need to ensure that their employees are aware of and kept up to date with the possibility of anti-competitive practices and their consequences if they are to demonstrate that they have taken adequate steps to achieve compliance.
The Act prohibits agreements and practices that prevent, restrict or distort competition - or are intended to do so. These can be formal agreements or informal, written or not. In general terms, the Competition Act 1998 outlaws any agreements, business practices and conduct which have a damaging effect on competition in the United Kingdom.
More specifically, the Act prohibits:
those agreements between undertakings, decisions by associations of undertakings (such as trade associations), and concerted practices which prevent, restrict or distort competition, or are intended to do so, and which may affect trade within the United Kingdom (known as the Chapter I prohibition) - this prohibition applies to both informal and formal arrangements (that is, agreements, decisions, or practices), whether or not they are set out in writing and
the abuse by one or more undertakings of a dominant position in a market which may affect trade within the United Kingdom (the Chapter II prohibition).
Under the Act, the UK regulatory authorities have powers to investigate undertakings believed to be involved in anti-competitive activities and to impose financial penalties where appropriate. Third parties may be able to claim for damages in the courts.
Although many different types of agreement are caught by the prohibition, the Act lists specific examples to which the prohibition is particularly applicable. These include:
agreeing to fix purchase or selling prices or other trading conditions;
agreeing to limit or control production, markets, technical development or investment;
agreeing to share markets or supply sources;
agreeing to make contracts subject to unrelated conditions;
agreeing to apply different trading conditions to equivalent transactions, thereby placing some parties at a competitive disadvantage.
The Act is enforced by the Director General of Fair Tradings, and he has wide-ranging powers to investigate suspected breaches. Officials can enter premises and demand relevant documents, and may even get a warrant to make a search. Offending agreements or conduct can be ordered to be terminated.
If there are reasonable grounds for suspecting that an undertaking is infringing either prohibition, he - or authorised officials acting on his behalf - can enter premises and require the production of documents he considers relevant to the investigation.
Further, if he obtains a warrant from the High Court or the Court of Session, he - or his authorised officials - can enter the premises, using reasonable force where necessary, and search for documents. Normally, only copies of any relevant documents will be taken away but, in limited circumstances, originals may be seized.
Where an undertaking is found to have breached either prohibition, the Director General may order the business to terminate or amend the offending agreement or cease the offending conduct.
Further, the Director General has the power to order interim measures which require an undertaking to refrain from engaging in suspected illegal activity while he investigates the matter. But he will exercise this power only when he considers it necessary to take urgent action to protect third parties from suffering serious, irreparable damage, or to protect the wider public interest.
Undertakings found to have infringed either prohibition may be liable to a financial penalty of up to 10% of their turnover in the United Kingdom. The turnover of an undertaking for the purposes of this maximum cap on penalties is defined in the Competition Act (Determination of Turnover for Penalties) Order 2000
In addition those parts of any agreement which are found to infringe the Chapter I prohibition are null and void and therefore cannot be enforced. Third parties who consider they have been harmed as a result of any unlawful agreement, practice, or conduct may have a claim for damages in the courts.
Full information can be obtained from the Office of Fair Trading site
Login
Register
FAQ
