23 Apr 2008


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OFT apologises to Morrisons over milk allegations – and pays £100,000 to settle libel case

Morrisons

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The Office of Fair Trading (OFT) has apologised to supermarket chain Morrisons after naming it as one of several supermarkets and dairy processors allegedly involved in price fixing.

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And it has agreed to stump up £100,000 to settle a libel case brought by Morrisons, as well as paying the retailer's legal costs.

Morrisons was named in a press release last September, but immediately denied involvement in the alleged price fixing, which occurred between 2002 and 2003.

But in a statement today, the OFT admitted the press release had wrongly suggested that:

1. Morrisons was the subject of a provisional OFT finding of infringement in relation to milk, cheese and butter between 2002 and 2003;

2. Morrisons had previously been warned by the OFT against anti-competitive
behaviour.

It said in a statement: “In fact, the OFT has not made any provisional finding of infringement against Morrisons in relation to the supply of butter and cheese. Nor has Morrisons been accused of any price fixing activity after 2002.

“The only allegation relating to Morrisons relates to liquid milk products in 2002. In addition, the OFT accepts that Morrisons had not received a warning from the OFT.

“The OFT regrets that the press release contained these serious errors, and wishes to apologise sincerely to Morrisons for their publication.”

It continued: “The OFT was and is in no position to decide whether there has been a breach of the law until it has considered the responses to the Statement of Objections, including those from Morrisons.”

The press release also contained a quotation from Sean Williams of the OFT.

The OFT said today it wanted to make clear that nothing in Williams' quoted remarks was intended to suggest that the OFT, or anyone within the OFT, had concluded that
Morrisons was guilty, or would necessarily be found guilty, of price-fixing in relation to the supply of certain liquid milk products in 2002.

It said: “The OFT has not, and had not at any earlier stage, reached any such conclusion. Nor has the OFT reached any conclusion that Morrisons acted in a manner which it knew to be anti-competitive.

Today's statement concluded: “The OFT regrets any misunderstanding arising from the quoted remarks. It wishes to reassure Morrisons that it remains entirely open-minded about its provisional findings pending its consideration of representations from Morrisons and the totality of the evidence.”

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Peter Martin	24 Apr 2008 08:40:28
Just wondering where, or rather from whom this money will be coming from? And if there are any any consequences to those who caused such costs to be incurred?

Tom	28 Apr 2008 11:04:02
I'm sure the money essentially comes from the taxpayer, although it's a small amount compared to the millions gained from fines relating to this issue earlier in the year. I am impressed that Morrisons have decided to give the £100k to charity - they would've been within their rights to keep it as alegations such as those made against it could easily have cost them the money in lost trade.