OFT investigators may also be brought into play as a result of 'insider information' being provided by a company that is a member of a cartel. The Director General of Fair Trading has adopted a policy of lenient treatment in cartel cases under which the first member of a cartel to come forward with relevant information can be granted immunity from financial penalty, while those who don't quite get there first may receive significant reductions. It is not just a question of making a telephone call. Those wishing to benefit from the policy will be expected to provide the OFT with all the information available to them, including documents regarding the existence and activities of the cartel. They must also fulfil certain other conditions, including ceasing activity in the cartel and fully cooperating with the investigation.
Cartels are notoriously difficult to detect as they are, by their very nature, secret.
The Competition Act heralds a much tougher competition regime in the UK, and greatly strengthens the OFT's powers to act against anti-competitive practices. The rewards of making it a success are high. The legislation is designed to stimulate and foster competition, give every business the same opportunity to succeed and protect consumers against artificially high prices. You are welcome to print off these pages, link to them, or reproduce them so long as you do not do so for financial gain or distort the information contained here. We welcome your comments on any aspect of this service.