Retailers could face fines warns CMA

12 May, 16

If a retailer enters into an RPM agreement with a supplier, they too can be fined

Following the announcement Ultra Finishing has broken competition law by preventing retailers from discounting online prices, comes the news retailers can be fined by the Competition and Markets Authority (CMA).

It reports if a retailer enters into resale price maintenance (RPM) agreements with suppliers, they too could face penalties.

The CMA suggests if retailers think they have been involved in RPM, then they may be able to apply for leniency and receive a reduced fine, or avoid a fine altogether, by reporting it and co-operating with the CMA.

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Bathroom supplier Ultra Finishing had originally been fined £826,000 after admitting trying to stop retailers from discounting online.

But it has since had its penalty discounted to £786,668 because of Ultra’s admission and agreement to co-operate with the Competition and Markets Authority (CMA).

Ultra Finishing has set up a training programme to ensure compliance with competition law and a procedure to identify, assess and mitigate risks.

In addition, it will review the compliance annually and submit a report on its activities to the CMA for the next three years.

For suppliers and retailers looking for guidance, commercial contracts solicitor at Gordons Law firm Charlie Smith explores the dos and donts of price control