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The Office of Fair Trading has accused leading underwear company DB Apparel and three department stores of price fixing on sports bras.
Debenhams, House of Fraser and John Lewis are accused of cooking up anti-competitive deals with DB Apparel UK over their Shock Absorber sports bras.
The OFT alleges that the underwear maker and the stores committed a serious breach of competition law, by agreeing fixed or minimum prices for the bras.
Following its 17-month investigation into the sports bra market, the OFT says that DB Apparel made nine anti-competitive agreements with the stores between 2008 and 2011, with the aim of increasing the price of the bras. During this period, Shock Absorber bras had a 15% share of the market.
Shock Absorber bras were being sold today for between £25 and £38 on Debenhams' website.
DB Apparel and the stores can challenge the OFT's findings before the regulator reaches a final decision in March 2014. If the allegations are upheld, the parties could in theory be fined 10% of their annual worldwide turnover.
"The OFT takes allegations of price fixing seriously," said Ann Pope, senior director of services, infrastructure and public markets at the OFT. "Resale price maintenance limits competition between retailers and can lead to consumers paying higher prices."
She said there was no assumption that the parties had infringed competition law.
"We will carefully consider the parties' representations to the statement of objections before deciding whether competition law has in fact been infringed."
DB Apparel rejected the allegations of anti-competitive behaviour. A spokesperson said: "We have been transparent with UK authorities since the beginning of this process and will continue to defend ourselves vigorously in this investigation."
John Lewis, House of Fraser and Debenhams also rejected the charges.
Office of Fair Trading investigates price fixing on sports bras | Business | theguardian.com
Debenhams, House of Fraser and John Lewis are accused of cooking up anti-competitive deals with DB Apparel UK over their Shock Absorber sports bras.
The OFT alleges that the underwear maker and the stores committed a serious breach of competition law, by agreeing fixed or minimum prices for the bras.
Following its 17-month investigation into the sports bra market, the OFT says that DB Apparel made nine anti-competitive agreements with the stores between 2008 and 2011, with the aim of increasing the price of the bras. During this period, Shock Absorber bras had a 15% share of the market.
Shock Absorber bras were being sold today for between £25 and £38 on Debenhams' website.
DB Apparel and the stores can challenge the OFT's findings before the regulator reaches a final decision in March 2014. If the allegations are upheld, the parties could in theory be fined 10% of their annual worldwide turnover.
"The OFT takes allegations of price fixing seriously," said Ann Pope, senior director of services, infrastructure and public markets at the OFT. "Resale price maintenance limits competition between retailers and can lead to consumers paying higher prices."
She said there was no assumption that the parties had infringed competition law.
"We will carefully consider the parties' representations to the statement of objections before deciding whether competition law has in fact been infringed."
DB Apparel rejected the allegations of anti-competitive behaviour. A spokesperson said: "We have been transparent with UK authorities since the beginning of this process and will continue to defend ourselves vigorously in this investigation."
John Lewis, House of Fraser and Debenhams also rejected the charges.
Office of Fair Trading investigates price fixing on sports bras | Business | theguardian.com
