Supermarkets milked customers in price-fixing, say OFT

10 August 2011

milk2It might have happened eight years ago, but that hasn't stopped the Office of Fair Trading (OFT) slapping Sainsbury's, Tesco and ASDA with massive fines for price-fixing. According to the BBC, nine companies are receiving multi-million pound fines worth a total of up to £50m for colluding over the price of milk and cheese in 2002 and 2003.

In isolation it only cost individual consumers a couple of pence per time, say OFT; they estimate the price-fixing racket saw shoppers pay 2p more for a litre of milk and a similar amount extra on 100g of cheese. However, across all consumer spending OFT originally calculated that an extra £270 million ended up in the pockets of supermarkets and other retailers.

The likes of ASDA and Sainsbury's received leniency after admitting liability - there's no use crying over spilt milk, after all; Tesco are instead threatening OFT with legal action if the allegations and £10.4 million fine aren't dropped.


TOPICS:   Economy


  • Dick
    The OFT should stick this one out to the butter end. If you lait off tescos and just let them brie, then they will do it again. No whey should you cow-er in to them but, in lact, kick them up the dairyerre and not them them get things like this past-your-eyes again.
  • Joff
    Best use of the past-your-eyes pun. Ever.
  • Chelsea
    What has got tescos goat, is that others got their fine condensed, whilst they still creamed off a good profit, and even though sainsburys market position has now evaporated Tescos feel it's Ultra Harsh Treatment.
  • PlatPlat
    They make nearly 300 million out of this and get fined 50? What's wrong with this country? The fine should be ten times that.
  • Jd64
    £270 million for an investment of £50 million? Sounds great! I'm sure they have learnt their lesson. Shame the lesson is that price fixing is profitable even when caught.
  • kv
    fine them a billion quid between them, then they might get the message
  • oliverreed
    Fuck the fine, make them sell milk at a reduced rate for a year, aren't we the ones that got ripped off?
  • dvdj
    Exactly, where does this money go?

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