OFT eyes tobacco groups

The UK’s Office of Fair Trading (OFT) has issued a statement alleging that certain tobacco manufacturers and retailers have engaged in unlawful practices in relation to retail prices for tobacco products in the UK.

The statement of objections sets out the OFT's proposed findings against tobacco manufacturers Imperial Tobacco and Gallaher, and eleven retailers - Asda, the Co-operative Group, First Quench, Morrisons, Safeway, Sainsbury, Shell, Somerfield, T&S Stores, Tesco and TM Retail.

The OFT alleges that these tobacco manufacturers and retailers engaged in unlawful practices in relation to retail prices for some or all of a number of tobacco products in breach of the Competition Act 1998.

“For markets to work well for consumers, it is a fundamental principle that pricing decisions should be made independently.

John Fingleton, OFT chief executive

John Fingleton, OFT chief executive, said: 'For markets to work well for consumers, it is a fundamental principle that pricing decisions should be made independently. If we find evidence of anti-competitive activity, we are prepared to use the appropriate powers to punish the companies involved and to deter other businesses from taking part in such behaviour.’

He added: 'If proven, the alleged practices would amount to a serious breach of the law.'