Last updated: April 17, 2010
Source: The Mirror
Supermarkets and tobacco giants have been fined a record £225million for price fixing.
The Office of Fair Trading ruled Imperial Tobacco, Gallaher and 10 store chains unlawfully linked rival cigarette and tobacco product prices.
A seven-year probe found they struck secret deals between 2001-03 to raise or lower costs to shoppers.
Imperial, which makes Lambert & Butler, must pay £112.3million and Benson and Hedges owner Gallaher was given a £50.3million penalty.
Supermarket Morrisons has been fined £8.6million but is also liable for £11million imposed on Safeway following its takeover of the group.
The Co-op was fined £14million to which will be added Somerfield’s £4million, again after a takeover.
Asda’s fine is just over £14million while whistleblower Sainsbury’s was let off the hook for lifting the lid.
The OFT ruled there was “insufficient evidence” to probe Tesco but Shell was fined £3.3million and TM Retail, which owns Martins and McColls, faces a £2.6million hit.
First Quench and One Stop Stores were also fined. The Co-op and Morrisons plan to appeal.
So does Imperial, which said: “Discounts given to retailers were passed on to consumers in prices.”
Gallaher accepted the ruling.