Written by Stephen C. Tupper | Lisa Navarro

On 10 September 2009 the Office of Fair Trading (OFT) and the Serious Fraud Office (SFO) dawn-raided the offices of Sports Direct. The dawn raid is the first public step by the OFT in its investigation into alleged anti-competitive agreements between Sports Direct and JJB Sports.

Whilst no details have been released formally as to the nature of the alleged anticompetitive conduct, it is likely to be linked to agreements between the two companies for JJB to stock Sports Direct’s own-brand products (e.g., Slazenger, Everlast, Dunlop, etc.) and, specifically, the arrangements regarding onward pricing.

The OFT’s investigation, which commenced in January of 2009, was triggered by JJB whistleblowing to the OFT. As a result, JJB has been granted immunity under the OFT’s leniency policy from any fines under the Competition Act 1998 and from criminal prosecution of responsible directors under the Enterprise Act 2002. Sports Direct, however, is subject to the risk of both. In addition, the decision by the OFT to involve the SFO raises the prospect of additional criminal liability to which both companies remain exposed.
Continue Reading Whistleblowing and Dawn Raids — Sportswear Giants at it Again