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Price fixing costs JJB another £3.8 million

Sportswear firm's bill rises to £7.7 million


football shirts

Sportswear chain JJB Sports says it’s facing an additional hit of £3.8 million after the House of Lords threw out the sports clothing chain’s attempt to cut a £6.7 million fine for price-fixing of football shirts.

The Wigan-based firm appealed to the House of Lords in a bid to soften an Office of Fair Trading penalty handed down in August 2003 for price-fixing of England and Manchester United shirts during 2000 and 2001.

But following its legal failure earlier this week, the company said it would be forced to make provisions for the full fine plus interest – £7.7 million.

The firm has added an extra £3.8 million loss provision in its accounts for the year to January 28 on top of the £3.9 million already booked last year. The firm’s final legal bill is unknown.

Price fixing

JJB, which said it was the victim of a ‘grave injustice’, maintains its innocence and said the case highlighted confusion in the law.

The company is also facing a legal action from Which?.

We’re seeking compensation from JJB under the 2002 Enterprise Act allowing designated bodies to bring actions on behalf of consumers.

If Which? succeeds in winning a pay-out to consumers at the Competition Appeals Tribunal, it will be able to give the payment back out to those who were ripped off.

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