CMA cracks down on competition law, ensuring you have consent for advertising cookies, plus an end of an era in UK manufacturing
Today’s blog post starts with how the Competition and Markets Authority (CMA) has put a warning out to businesses who are potentially breaking competition law, plus we also help you to ensure your website is compliant with cookie laws. In other news, the closure of Tata Steel’s final furnace along with Ratcliffe-on-Soar’s coal power station, marks the end of an era in UK manufacturing.
Are you complying with competition law? Reviewing the CMA’s latest warning
The Competition and Markets Authority (CMA) has just published a new set of heat maps showing where businesses across the UK have received warning or advisory letters for potentially breaking competition law. It’s the first time the CMA has published this kind of information, and it’s a reminder for all businesses to ensure they’re on the right side of the law.
If you run a retail business, manufacture goods, or operate in any competitive market, the CMA’s report could be of interest to you.
What Is the CMA Doing?
From 2018 to 2023, the CMA sent 557 letters to businesses in various sectors, including household goods, technology products, heating equipment, and clothing. These letters are meant to warn businesses about practices that could be harming consumers and breaking competition law.
The most common issue? Resale Price Maintenance (RPM). This happens when suppliers or manufacturers restrict retailers from offering discounts, keeping prices higher for consumers. If your business is involved in setting prices for products sold by resellers or distributors, it’s worth reviewing those agreements carefully.
What could happen if you ignore a warning?
If you receive a letter from the CMA, take it seriously. Businesses that ignore these warnings could face significant penalties.
For example, GAK, a business that resells digital keyboards and guitars, were fined £278,945 for having an agreement with Yamaha not to discount online prices for certain products. This was increased by 15% because GAK had already been sent an advisory letter from the CMA expressing their concerns it was potentially engaging in RPM.
The penalties don’t stop at fines. In some cases, the CMA can disqualify company directors, which could be disastrous for a business.
Why this matters for your business
Even if you haven’t received a letter, this is a good reminder to review your practices. Staying on the right side of competition law can help to protect your business and reputation.
It may be good to review your supplier and reseller agreements. If you’re involved in setting prices or giving instructions on how your products are sold, make sure you’re not limiting competition. Restricting discounts could land you in trouble.
The CMA’s heat maps show that warning letters have been sent to businesses all over the UK, with higher concentrations in regions like the South East and London. If you operate in these areas, it’s worth being extra vigilant.
At the end of the day, keeping your business compliant with competition law isn’t just about avoiding fines – it’s about protecting your customers, your reputation, and your future growth.
If you’ve received a warning or advisory letter, or if you just want to ensure your business is operating within the law, get in touch with us today. We’re here to support you and help safeguard your business.
See: https://www.gov.uk/government/news/cma-reveals-geographic-spread-of-warnings-issued-to-businesses
Is your website compliant with cookie laws?
If you run a business with a website, you’ve likely seen those cookie consent banners asking visitors whether they’d like to accept or reject cookies. But what if your website is not giving visitors a fair and informed choice when it comes to how their personal data is used?
A recent case involving Sky Betting and Gaming shows just how serious the consequences can be when businesses fall short of these legal requirements.
What happened?
Between January and March 2023, Sky Betting and Gaming was found to be processing personal information from visitors to their website and sharing it with advertising companies without obtaining their prior consent.
Visitors to the SkyBet website had their personal data used for targeted ads before they had the opportunity to accept or reject cookies.
While there was no evidence that Sky Betting and Gaming was deliberately targeting vulnerable users, the investigation concluded that the company’s use of cookies was neither lawful, transparent, nor fair.
As a result, Sky Betting and Gaming made necessary changes to ensure that people could reject advertising cookies before their personal information was processed. But the case serves as a clear warning to businesses about the importance of complying with cookie and data protection regulations.
Why businesses should take note
The SkyBet case is part of a wider crackdown by the regulator on websites that misuse advertising cookies. Last year, the regulator reviewed the UK’s top 100 websites and found that more than half of them had issues with how they were using cookies.
Many of these sites have since made changes, but any business that fails to comply could face enforcement action.
The key takeaway? Businesses need to ensure their websites give visitors a clear choice when it comes to cookies, particularly when it comes to how personal data is used for targeted advertising.
There continues to be increasing scrutiny on how businesses handle personal data online. As a business owner, it’s essential to make sure your website complies with data protection regulations—especially when it comes to cookies and targeted advertising.
Compliance isn’t just about avoiding fines; it’s about building trust with your customers and ensuring that your business operates fairly and transparently in today’s digital world.
Primary steelmaking at Britain’s biggest steelworks comes to an end
Tata Steel closed its last blast furnace at Port Talbot in Wales at the end of September after more than 100 years of steelmaking. It’s estimated that 2,800 jobs will be lost as a result.
The blast furnace is used to make what is called primary or virgin steelmaking because the molten iron is produced from its original source by splitting rocks containing iron ore. It requires intense heat and emits high levels of carbon into the atmosphere.
Port Talbot originally had two blast furnaces, but the first was taken out of service in July. Now that this second one has been closed, primary steelmaking in Wales has drawn to a close.
Tata Steel has said that it was losing £1m a day from its blast furnace operations, and it will instead invest £1.25bn in an electric arc furnace that will make steel from scrap but also reduce carbon emissions. The project also fits with government net zero objectives and will receive £500m of government support.
Construction on the new furnace is expected to start in August 2025 and in the meantime, steel slab will be imported for milling in Port Talbot.
Another company, British Steel, is still currently making virgin steel at two blast furnaces it runs in Scunthorpe. However, it is also in talks with the government about shifting to cleaner manufacturing.
By switching to electric steelmaking, the government expects to reduce Britain’s carbon emissions by 1.5%. Naturally the closure has caused concern to many, both employees and the small businesses who rely on trade coming from the plant itself or the workers who work there.
Significant moment as coal power ends in the UK
In another significant industrial move, the UK’s last coal power station at Ratcliffe-on-Soar in the Midlands finished its operations at the end of September.
This is the first time in 142 years that coal-fired power hasn’t contributed to the national grid.
The very first coal-fired power station was built in 1882 by Thomas Edison at Holburn Viaduct. From that point, and for many decades, coal-fired power became the main way of providing electricity to UK homes.
In 2015, when the government announced its plans to close coal plants as part of its plan to reach climate targets, coal was producing almost 30% of the UK’s electricity needs. This had fallen to 1% by last year and now has been completely phased out.
While clearly good news in the move to greener forms of energy that are more environmentally friendly, redundancies and the end of an industry that many may have been relying on for an income will cause concern for many.
This perhaps highlights the importance for all businesses to not be focused solely on the way they have always done things, but to be ready to adapt as new technologies and more environmentally friendly processes become available.