October 28, 2010
Smaller firms struggling to stay on the right side of competition law have been given a boost following a decision by the Office of Fair Trading (OFT) to publish much-needed assistance. The guidance sets out practical steps that companies can take to make sure they are not in breach of competition law. It explains what the OFT calls its "risk-based, four step process for creating a culture of compliance within a business". One set of guidelines will assist companies and the firms that advise them, including sections tailored to the needs of small and medium sized enterprises (SMEs). The other guide will explain the level of understanding that Executive and Non-Executive Directors of companies are expected to have of competition law, following a change in OFT policy announced earlier this year. "The OFT will be just as concerned with Directors who ought to have known of competition law breaches at a company as those who were personally involved in an infringement," read an OFT statement in July. "Cases will be chosen based on the evidence available and seriousness of the conduct." "Sanctions for involvement in competition law infringements can be severe for both businesses and individuals, especially Directors," said OFT Senior Director of Policy, Cavendish Elithorn. "The OFT is well aware that most businesses and Directors wish to comply with competition law. We are keen to help them do so. These guidance documents are intended to set out steps that businesses and Company Directors can take in order to avoid competition law infringements." If you’re struggling to comprehend recent changes in competition law and how they may affect your business, our experts are here to help you navigate your way through such changes.