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A cosy arrangement
From 20 June 2003, it has been a criminal offence to be involved in certain types of cartel arrangement - price-fixing and market-rigging. Since 2000 it has been possible for the Office of Fair Trading to fine businesses involved in cartels up to 10% of their UK turnover for their involvement. Now it is possible for them to send people to jail as well.
This has received considerable publicity recently because of the disclosure that many private schools share information on fees before deciding what to charge. The effect could be to give the appearance of a competitive market, but secretly to allow higher prices than would otherwise be possible. It's an important reminder that something which seems to be sensible research, or a friendly informal arrangement with related businesses, can be against the law.
If you are concerned about cartels - either because you are worried that you are might be in one, or because you think you are paying too much to someone else who is - the OFT's website provides a great deal of information on what can be done (www.oft.gov.uk).
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