Cartel amongst Volvo dealers

United Kingdom

The Office of Fair Trading has published details of a price fixing cartel involving 17 Volvo dealers. The agreement restricted the discount rates available to commercial and retail customers. The dealers agreed to limit the level of discounts to 2.5% for Volvo cars to commercial customers, with the exception of certain prestige ranges. These prestige ranges would not have any discount on them at all. The dealers also agreed together to sell the whole range to retail customers at RRP, without any discount at all. The cartel continued from 1994 to the latter part of 1996. However, no further action will be taken against the dealers as the agreement has come to an end and the law under which they were investigated, The Restrictive Practices Act, was replaced on 1st March by the Competition Act 1998. The Competition Act 1998 has no retrospective effect.

(OFT Press Release 14/00)