Five retailers and a tobacco manufacturer have agreed to pay the biggest collective penalty ever imposed by the Office of Fair Trading after admitting their role in cigarette price fixing.
Asda, First Quench, One Stop Stores, Somerfield, TM Retail and Gallaher have agreed to pay£132 million. The tobacco manufacturer is paying the lion’s share. The retailers have signed early-resolution agreements in exchange for a significant reduction in the fine.
Imperial Tobacco and five other companies, including Tesco, are still fighting the allegations. Sainsbury’s, the first company to apply for leniency, has received immunity as long as it continues to co-operate with the probe.
The remaining retailers involved are Morrisons, Safeway and Co-operative Group.
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