OFT offers reward for information in commercial vehicle manufacturer cartel investigation

Updated February 2011

Since last year, the Office of Fair Trading (OFT) has been investigating suspected price fixing involving several major truck manufacturers within the United Kingdom. This investigation is separate (but may be connected) to a wider investigation that the OFT is undertaking in the automotive sector.

Unannounced inspections (also known as dawn raids) were carried out at the Milton Keynes office of Mercedes Benz in September. At the time of the raids, one person was arrested and released on police bail. A number of other truck manufacturers, Scania, MAN, Iveco, Renault Trucks and Volvo Trucks have also been asked to supply information to the OFT as part of the investigation.

On 25 January 2011, the OFT asked any person with information that may be relevant to its investigations to get in contact. Persons coming forward with information that assists the OFT could be rewarded with up to £100,000 under its informant rewards programme. Individuals involved in any infringement may also, in specific circumstances, be granted immunity from criminal prosecution.

It is interesting to see that some three months after the launch of its investigation, the OFT has made a public statement requesting individuals to come forward should they have information concerning the alleged infringement. While the OFT's informant reward programme has been running since September 2008 it is rare, if not unheard of, for the OFT to make a specific and public request for information.

Following the embarrassing collapse of its criminal prosecution of several British Airways' executives last year, the OFT is clearly concerned to ensure that it has as much incriminating evidence as possible. However, individuals thinking of contacting the OFT with information should consider their position carefully before coming forward. The reward is discretionary and will depend on the value that any information adds to the OFT's investigation as well as a number of other key conditions; in other words, the OFT will undoubtedly want its pound of flesh before paying out. As a result, specialist legal advice is advisable before contacting the OFT.

For further information, please contact Miles Trower.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at February 2011. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.

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