This is Gonna Be Fun

About 100 leading household brands, including PG Tips, Coca-Cola and Aquafresh, are at the centre of an investigation into allegations of price-fixing, The Daily Telegraph can disclose.

From the report it seems that the OFT thinks that every large consumer goods company and every large retailer is in on it. In effect, that the entire market is a stitch up.

MySupermarket.co.uk, the comparison website, said supermarkets sell commonly-purchased goods at almost identical prices to each other.

What evidence they have I\’ve no idea of course: but I do know that that fact proferred there isn\’t evidence of a price fixing ring. For there\’s a rather large problem that everyone has in looking at such things. That all outlets sell the same good at the same price could indeed be the result of a fixed market: it is also the result you would expect from a (near, for of course completely doesn\’t actually exist) perfectly competitive market.

As I say, this is going to be fun. If the OFT manages to prove its case then  the retialers and manufacturers are in deep doo doo. And if the OFT doesn\’t prove anything, then the OFT itself is, for there will certainly be questions about why it launched such a high profile case without sound evidence.

 

4 thoughts on “This is Gonna Be Fun”

  1. there will certainly be questions about why it launched such a high profile case without sound evidence.

    It seems to me that there tends to be an inverse relationship between high profile and sound evidence.

  2. “Senior retailers have dismissed the OFT’s latest probe as a “fishing expedition””
    With my tinfoil hat firmly on: I think the government is running scared of inflation so it is getting the OFT to put the squeeze on the retailers and suppliers.

  3. There were three businessmen convicted by the OFT.
    The first charged more than competitors and was accused of price gouging.
    The second charged less than competitors and was accused of anti-competitive practices and seeking to drive competitors from business.
    The third charged the same as competitors. He was accused of price fixing.

    There really is no winning.

  4. Spot on Kit – the fact is the OFT is suddenly gunning for everyone three days before a local election which is going to be terrible for labour…

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