Consumer Group Targets UK Replica Shirt Manufacturers

Thursday 27th of September 2007 10:27:14 PM

After filing a lawsuit under the Enterprise Act of 2002, UK consumer group Which? claimed that thousands of people overpaid for replica shirts manufactured by JJB Sports, a manufacturer of promotional Clothing for many football and other sports leagues. So far, only 130 people have come forward to join the suit.

Which? maintains that between 2000 and 2001, JJB Sports engaged in price fixing, which is essentially manipulating prices in the market so companies can earn large profits. Even though the company, which was found guilty in 2003 of price-fixing by the Office of Fair Trade and ordered to pay a large fine, will be taken to court again, it is unclear if they were overcharging for shirts before 2003. Other promotional Clothing companies including Umbro and AllSports were also investigated in 2003.

The lawsuit will be the first one tried under the Enterprise Act of 2002 and will be in front of the Competition Appeals Tribunal. If found guilty, JJB Sports could face more fines and other actions. Because this season has not been kind to promotional Clothing companies in terms of sales, lawsuits like this one that claim price fixing and cheating consumers will not help.

Even though only 130 people have come forward to be named in the suit, more may want to be included. Which? launched an ad campaign after filing the suit in the hopes that they could find everyone who may have fallen victim to price fixing if JJB Sports is found guilty.

(c)Atif Gulzar, www.sxc.hu