News and Press
JJB exchanges information for immunity in OFT cartel investigation

The Office of Fair Trading (OFT) and the Serious Fraud Office are currently investigating suspected cartel activity in the sports retail sector. The focus of the investigation is an alleged price fixing agreement between by JJB Sports and Sports Direct whilst the former chief executive, Mr Christopher Ronnie (now suspended), was employed by the company.

The investigation follows a leniency application made by JJB to the OFT earlier in the year. In return for 'blowing the whistle' the company hopes to receive immunity from fines. Individual directors and employees may also obtain immunity from prosecution.

It is an offence to dishonestly engage in certain prohibited cartel arrangements (such as price fixing or bid-rigging).

In this case, a statement from JJB confirmed that the OFT had granted conditional immunity for the suspected cartel activity and that the company intends to co-operate fully in the investigation. Individuals at Sports Direct involved in the illegal anti competitive arrangements may face criminal charges, the directors could be disqualified from acting and the company could be fined up to 10% of the group's worldwide turnover.

This is not the first time that the sports giant, JJB, has faced investigation, having been fined £6.7 million early last year for fixing the prices of replica England and Manchester United football kits.

Nicola Kingaby, a Competition specialist at TLT comments "All businesses need to have an awareness of competition law and the penalties for breach. This investigation highlights the importance of acting swiftly should a company find itself involved in activities that may infringe this complex area of the law".

TLT offers bespoke Competition Compliance Programmes with optional elements, each priced separately. We would be pleased to discuss (at no charge) the options with you and to offer guidance as to how to prevent and to respond to infringements of competition law.