Which? issues legal proceedings against JJB Sports

13 March 2007

Consumer champion Which? has issued proceedings against JJB Sports to sue the high street retailer for damages on behalf of consumers.

Which? is taking the company to court to claim back money for people who were unlawfully overcharged for football shirts in 2000 and 2001 by a cartel made up of JJB Sports and six other companies.

The companies were fined a total of over £16m in 2003 by the Office of Fair Trading for fixing the price of England and Manchester United football shirts in 2000 and 2001.

Using its new legal powers under the Enterprise Act 2002, Which? is the only organisation in the UK so far given powers to launch a consumer representative action of this kind.

Lawyers acting for Which? have issued proceedings in the Competition Appeal Tribunal (CAT) against JJB Sports. Malcolm Coles, Online Editor, Which?, says:

“JJB Sports and their fellow cartel members tried to ensure the market was all sewn up, so it would have been difficult to find these shirts for sale at a fair price.

“Although JJB has already paid a fine, the money went to the government. We’re suing now to try to get money back for the people who paid more than they should have – and whose money only went to line this greedy cartel’s pockets.

“This case is as much about justice and fairness as anything else. We want to teach companies that rip off their customers a lesson – Which? has new legal powers and we will come after you.”

Which? wants people who bought certain shirts during 2000 and 2001 to come forward and register a claim on which.co.uk/football-shirts - even if they no longer have a receipt.

- Ends –

Notes to Editor

 

People can register their claim at which.co.uk/football-shirts

Background

  • Sportswear retailer JJB Sports was one of seven companies fined by the Office of Fair Trading in 2003 for unlawfully fixing the price of England and Manchester United football shirts in 2000 and 2001.
  • The seven companies were: Allsports Ltd., Blacks Leisure Group plc; JJB Sports, Manchester United plc, Sports Soccer Ltd, JD Sports; and Umbro Holdings Ltd.
  • The total fine amounted to over £16m
  • Although JJB Sports has already paid a £6.7m fine to the government, Which? wants damages to go directly to consumers who paid too much for football shirts.
  • Using its new powers under section 47B of the Enterprise Act 2002, Which? is the first organisation in the UK to launch a representative action of this kind. The Act states that certain designated consumer bodies can bring a representative action on behalf of consumers once firms have been found guilty of cartel activity, or other breaches of competition law, and appeal proceedings have concluded. Damages action must be brought within two years of the final appeals. Now that all the appeals have been heard, we’re free to explore the action we can take.
  • The relevant football shirts are: England shirts bought between May 2000 and June 2000, Manchester United ‘home’ shirts bought between August 1 and October 1 2000 (including any pre-orders which consumers may have made in July 2000), Manchester United Centenary ‘home’ shirt bought at the start of the 2001/2 season (i.e. from when the centenary shirt was launched on 20th July to end August 2001, including any pre-orders which consumers may have made in July 2000)

What do we want?

  • We’re appealing to people who bought one of the shirts, even if they no longer have a receipt, to log onto which.co.uk/football-shirts and register a claim.
  • If we succeed in winning a pay-out to consumers at the Competition Appeals Tribunal, we’ll distribute the payment back to those who were genuinely ripped off by the cartel.

What happens next?

  • Which? has issued proceedings in the Competition Appeals Tribunal (CAT) to start the case, and a case management conference (CMC) will be held to determine how the case will proceed.

Research Notes

 

Which? works for you