Retailer Avoids Fine with Full Cooperation and Compliance
- JD Sports and Leicester City FC found guilty of breaking competition law by colluding on sales of Leicester City-branded clothing
- CMA investigation began in September 2021, Leicester City agrees to pay a fine of up to £880k under the settlement policy
- JD Sports will not be fined if it continues to cooperate and adhere to CMA’s leniency policy conditions
- Arrangement made in August 2018: JD stopped selling Leicester City-branded clothing online for the 2018/19 season
- In January 2019, JD agreed to apply delivery charges on Leicester City-branded clothing orders for the 2019/20 season
- From July 2020, JD continued applying delivery charges until at least January 2021
- CMA’s leniency policy grants JD full immunity from fines with continuous cooperation
- No current or former directors involved in the offending conduct (2018-2021)
- JD strengthened competition compliance program and committed to resources for daily operations
The UK’s Competition and Markets Authority (CMA) has found that JD Sports and Leicester City Football Club broke competition law by colluding on the sales of Leicester City-branded clothing in the UK. The CMA began its investigation in September 2021, with Leicester City agreeing to pay a fine under its settlement policy of up to £880k after admitting it had breached competition law over three football seasons. JD Sports will not face any fines if it continues to cooperate and adhere to the conditions of the CMA’s leniency policy. The arrangement in August 2018 saw JD stop selling Leicester City-branded clothing online for the 2018/19 season, followed by an agreement in January 2019 that JD would not undercut Leicester City on online sales for the 2019/20 season by applying delivery charges to all orders of Leicester City-branded clothing. By July 2020, JD committed to maintaining delivery charges on such orders for the 2020/21 season until at least January 2021. The CMA’s Executive Director of Enforcement, Michael Grenfell, stated that strong competition between retailers is vital for consumers to find the best deals and warned that anti-competitive collusion won’t be tolerated. JD brought the conduct to the CMA’s attention in January 2021 and cooperated throughout the investigation, leading to a leniency agreement on June 30, 2023, granting full immunity from fines as long as they maintain cooperation. No current or former directors were involved in the offending conduct (2018-2021). JD has improved its competition compliance program and committed resources for daily operations.
Factuality Level: 9
Factuality Justification: The article provides accurate information about the CMA’s findings and actions against JD Sports and Leicester City FC for breaking competition law. It includes quotes from relevant sources and explains the consequences of their actions. The article is well-structured and does not contain any irrelevant or sensational details, nor does it present personal opinions as facts.
Noise Level: 6
Noise Justification: The article provides relevant information about a specific case of collusion between JD Sports and Leicester City FC, but it could have included more details on the impact on consumers and potential lessons for other businesses to avoid similar situations. It also lacks analysis or exploration of broader implications.
Financial Relevance: Yes
Financial Markets Impacted: JD Sports
Financial Rating Justification: The article discusses a competition law violation by JD Sports and Leicester City FC, which could impact the reputation and financial performance of JD Sports in the retail market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the impact of the situation is minor as it involves a fine and no significant consequences beyond that.
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