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Directors urged to brush up on competition law to avoid penalties

Posted: 16th February 2017   In: Corporate Commercial

Directors are being urged by the Competition and Markets Authority (CMA) to make sure their company practices comply with the law.

Failure to do so could result in penalties and disqualification.

The CMA has provided the following check list:

Why should directors help companies avoid breaking competition law?

What action do company directors need to take?

Test your company’s compliance with competition law, here are some questions to ask:

Encourage and facilitate reporting

What is a cartel and how does being involved affect you?

In simple terms, a cartel is an agreement between businesses not to compete with each other. The agreement is usually secret and often informal.

Cartels are a particularly serious breach of competition law. Individuals involved in cartels can go to jail for up to five years. Businesses that breach competition law can be fined up to 10% of turnover.

If you’ve been involved in an illegal cartel yourself: you may benefit from lenient treatment by being the first to come forward to the CMA.

Please contact Sarah Liddiard if you would like more information about the issues raised in this article or any aspect of competition law.

Posted by: Sarah Liddiard
Corporate Commercial
Luton Office