News and Press
Competition watchdog targets directors for disqualification

Philip Collins, Chairman of the Office of Fair Trading (OFT), recently confirmed that it would make increasing use of powers that allow Board members to be disqualified for up to 15 years where their company infringes competition law.

Nicola Kingaby, a Competition specialist at TLT says: "Directors must not allow the current economic downturn to cause themselves, or employees, to fail to abide with competition law, which prohibits anti-competitive practices, conduct and agreements (whether or not in writing). The OFT will increasingly seek to punish directors alongside powers providing for unlimited fines and/or up to five years in prison for individuals engaged in dishonest cartel behaviour. It should be borne in mind, that a whistle blowing individual can earn a reward of up to £100,000 for informing on their employer."

Businesses in breach of competition law, may be fined up to 10% of their worldwide group turnover.

Ignorance of whether certain conduct breaches competition law is no defence. Nicola comments "In our view, directors must ask themselves two important questions; first, can I be reasonably certain that my company is complying with competition law? and second, if not, what should I be doing to ensure that it is?

Directors can minimise the risk of an infringement of competition law (and potential personal liability) by ensuring that they implement a 'Competition Law Compliance Programme'. A Competition Compliance Programme is nowadays considered to be part of good corporate governance. It should not be thought of as something which does not affect small or medium sized enterprises."

TLT offers bespoke Competition Compliance Programmes with optional elements, each priced separately. We would be pleased to discuss the options with you and to offer you a free dawn raid response pack, which provides detailed guidance on what to do in the event that your business is subject to an unannounced inspection by the competition authorities. By taking these steps, directors will reduce the risk of infringing activities by employees and will significantly enhance their own position in the event of an OFT investigation.