Imperial Again Denies Unfair Trading Allegations

Source from:  tr.itsmyiq.com Jul 15, 2008 07/16/2008

Imperial Tobacco Group said on Friday that it was not one of the six companies named by the UK's Office of Fair Trading (OFT) as having reached early resolution agreements in respect of the OFT's investigation into the retail pricing of cigarettes and other tobacco products. 'Imperial Tobacco takes compliance with competition law very seriously and rejects any suggestion that it has acted in any way contrary to the interests of consumers,' the company said in a statement posted on its website. 'Imperial Tobacco has co-operated fully with the OFT throughout and continues to do so. 'The OFT's Statement of Objections (SO) was issued on 25 April 2008. At that time the OFT said that it "... will decide if the law has been breached after it has reviewed any responses to the statement of objections." The OFT has reiterated this point today [Friday, July 11]. 'Imperial Tobacco is in the process of finalising its response to the SO, which will be provided to the OFT in accordance with its current deadline of 23 July 2008.' The OFT announced on Friday that Asda, First Quench, Gallaher, One Stop Stores (formerly named T&S Stores), Somerfield, and TM Retail had reached early resolution agreements in which they had admitted engaging in the alleged unlawful practices in relation to the retail prices of tobacco products in the UK. It said the six companies had agreed to pay individual penalties which came to a 'combined maximum of £173.3m before discounts'. 'Today's agreements result from a process following the OFT's Statement of Objections issued in April 2008. This set out the OFT's proposed findings that two tobacco manufacturers and eleven retailers had variously engaged in one or more unlawful practices in relation to the retail prices of a number of tobacco products in breach of the Competition Act 1998,' the OFT said in a statement. 'The OFT has now concluded early resolution agreements with these six parties, each of which has admitted liability in respect of all of the infringements alleged against it, and each of these parties will receive a significant reduction in the financial penalty that might have otherwise been imposed on condition that it continues to provide full co-operation with the OFT. 'A number of the six parties had previously applied to the OFT for leniency, and the total penalties the parties have agreed to pay if all leniency and early resolution discounts are given is £132.3m, rather than the pre-discount penalties total of £173.3m.' Enditem