The Competition and Markets Authority (CMA) has recently published a new set of heat maps showing where businesses across the UK have received warning or advisory letters for potentially breaching competition law. This is the first time the CMA has shared this type of information, serving as a reminder for all businesses to ensure they remain compliant with the law.

Why should this matter to your business?

If you run a retail business, manufacture goods, or operate in any competitive market, the CMA’s report may be particularly relevant.

What is the CMA doing?

Between 2018 and 2023, the CMA issued 557 letters to businesses in various sectors, including household goods, technology products, heating equipment, and clothing. These letters aim to warn businesses about practices that may be harming consumers and violating competition law.

The most common issue raised? Resale Price Maintenance (RPM)—this occurs when suppliers or manufacturers prevent retailers from offering discounts, thus keeping prices higher for consumers. If your business is involved in setting prices for products sold by resellers or distributors, it’s worth carefully reviewing those agreements.

What happens if you ignore a warning?

If you receive a letter from the CMA, it’s crucial to take it seriously. Ignoring such warnings could result in severe penalties.

For example, GAK, a business that resells digital keyboards and guitars, was fined £278,945 for agreeing with Yamaha not to discount online prices for certain products. This fine was increased by 15% as GAK had previously received an advisory letter from the CMA, raising concerns over potential RPM involvement.

Penalties aren’t limited to fines. In some cases, the CMA can also disqualify company directors, which could have devastating consequences for your business.

Why this matters for your business

Even if your business hasn’t received a letter, this serves as a timely reminder to review your practices. Remaining on the right side of competition law is essential for safeguarding your business and reputation.

Consider reviewing your supplier and reseller agreements. If your business is involved in setting prices or influencing how your products are sold, ensure you aren’t restricting competition. Limiting discounts could lead to serious legal trouble.

The CMA’s heat maps show that warning letters have been sent to businesses across the UK, with particularly high concentrations in regions such as the South East and London. If you operate in these areas, it’s worth being especially cautious.

At the end of the day, staying compliant with competition law isn’t just about avoiding fines—it’s about protecting your customers, your reputation, and ensuring the future growth of your business.

If you’ve received a warning or advisory letter, or simply want to ensure your business complies with competition law, feel free to contact us today. We’re here to help protect your business and support your compliance efforts.

For more information, visit: https://www.gov.uk/government/news/cma-reveals-geographic-spread-of-warnings-issued-to-businesses