Law Breach?

It has been reported that a commercial van and truck dealer located in Blackburn has allegedly breached competition laws with other dealers. The Office of Fair Trading (OFT) has alleged that Mercedes-Benz and five dealers, including Ciceley, in Blackburn, have infringed the laws regarding healthy competition.

These laws are put in place to encourage healthy and fair competition between businesses and a breach of such laws can be incredibly damaging.

Additional Dealers

The additional dealers have been named by the OFT as Enza, Northside, Road Range and H&L. H&L is however now in administration.

Furthermore, reports suggest it is alleged that three of the five infringements concern vans, all of which will have required van insurance once they had been purchased by the public. Two of the infringements concern trucks.

The five breaches of law are said to have taken place between March 2007 and January 2010. It has been found that Mercedes-Benz was involved in two of the alleged infringements and that the precise content of the arrangements differed among the five alleged infringements but all contain “some element of market sharing, price co-ordination and/or exchange of commercially sensitive information.”

Mercedes-Benz Play a Part

Furthermore, a statement has explained that the evidence suggested, in respect to two of the five alleged infringements, Mercedes-Benz helped to facilitate or consolidate the arrangements amongst the dealers. Mercedes-Benz has, seemingly, played quite a big role in this breach of competition law therefore.

OFT senior director of cartels, Ali Nikpay, has been explaining the following: “Based on the evidence before us, we have reason to believe that these dealers co-operated to limit competition in their areas. These are the OFT’s provisional findings only. All parties will now have a full opportunity to respond to our statement before we decide whether competition law has in fact been infringed.”

Ciceley Commercials Ltd was founded in May 1972. It was appointed as a sole Mercedes-Benz commercial vehicle franchise for Lancashire in 1975.

 

 

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