High-strength alcohol schemes: competition law issues for retailers
Published 25 March 2015
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If you are approached by a local council about joining a scheme to limit the supply of high-strength alcohol in your local area, you should take care to avoid the risk of breaking competition law.
High strength alcohol includes any alcohol product over 6.5% ABV
Some local authorities are implementing schemes to tackle problems associated with street drinking by encouraging retailers to withdraw high-strength alcohol from sale.
But you may risk being fined if you either agree with other retailers, or share with them your plans, to stop selling high-strength alcohol.
Advice to avoid breaking competition law
If your business sells high-strength alcohol make sure that you comply with competition law:
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speak with council officials about your plans on an individual basis. Don바카라 사이트™t let them tell you about what other retailers may be doing
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if council officials try to tell you what other retailers may be doing, tell them you바카라 사이트™re not interested and you바카라 사이트™re not willing to discuss it
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don바카라 사이트™t share information with competitors about whether you plan to stock high-strength alcohol or let your competitors share their plans regarding high-strength alcohol with you
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don바카라 사이트™t make a commitment to sign up to a scheme in a meeting where other retailers are present
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don바카라 사이트™t collaborate with other retailers to agree to withdraw high-strength alcohol
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don바카라 사이트™t announce your participation in a scheme until it has been launched
You can decide to join a scheme and stop selling high-strength alcohol - but don바카라 사이트™t discuss this or agree to this in co-operation with other retailers.
The impact of breaking competition law
Competition law applies to firms 바카라 사이트“ including retailers 바카라 사이트“ engaged in commercial activity. Penalties for breaking the law include significant fines of up to 10% of your annual turnover.
The CMA has engaged with local councils to help them make sure they do not ask businesses to break the law or risk putting them in a position where they may do so.