The Office of Fair Trading ("OFT") today announced that it is prepared to offer informants a reward of up to £100,000 for information which assists in the detection and investigation of cartels.
The scheme is designed to encourage those with inside information about a cartel to come forward and assist the OFT. The amount of the reward is based on a number of factors including its value to the OFT in the investigation and the amount of consumer and economic harm which it helped to stop. The OFT will also take account of the effort invested in getting the information and the level of risk taken by the informant.
The OFT is encouraging informants to approach it as early as possible, preferably before the informant acquires all of the information to which he may have access. This will allow the OFT to discuss with the informant what information will be of most value. This suggests that informants may in some cases be used as information seekers, as opposed to just information providers.
The OFT has stressed that it won't bargain over the amount of the reward – instead, it will aim to pay a fair price for the information! The amount will not be established (or paid) until the end of the investigation as the value of the information will not be clear until that time. The OFT however, will try to give the informant an early and non-binding indication of the possible range within which it may fall.
It is also worth noting that the reward is discretionary - so if the OFT decides not to use the information, the informant will not get paid.
Where the potential informant is actually involved in the cartel, then generally a reward will not be available. Such persons already have the leniency regime as a means to obtain absolution and immunity. In some cases however, a reward may be available in addition to immunity where, for instance, the informant's role in the cartel was peripheral. The example quoted by the OFT is where an employee occasionally attends a cartel meeting on the direction of his superior.
This reward scheme is a very significant development in cartel enforcement and now, more than ever, businesses have to recognise the risks posed by cartels. If the OFT already knows about a cartel because of an informant, this may prevent you from obtaining full immunity under the OFT's leniency regime.
MacRoberts has extensive experience in dealing with cartel investigations and leniency applications. Immediate specialist help is imperative when dealing with the OFT to ensure that your interests are fully protected. We also offer full competition law training, compliance and audit services.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
