112 construction companies have been accused of rigging bids for contracts by the Office of Fair Trading (OFT).
Customers have been paying too much money after firms have colluded among themselves while bidding for contracts. 40 firms have admitted to price fixing while 37 had asked for leniency.
According to the chief executive of OFT, "Cartel activity of the type alleged today harms the economy by distorting competition and keeping prices artificially high"
He added, "This investigation, together with the OFT's previous decisions in the roofing sector, will hopefully send out a strong message to the construction industry about the seriousness with which we view suspected anti-competitive behaviour. Businesses have no excuse for not knowing and abiding by the law."
So what will become of these firms? Any company found to be a member of a cartel can be fined up to 10% of its annual turnover, but penalties are reduced for those who co-operate with an investigation.
To find reliable tradespeople in your area who will not fix prices, visit ProblemSolved.
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