Rangers FC have been accused of participating in price-fixing, forcing supporters to pay higher prices to wear their team’s shirt.
The Scottish Premiership team has provisionally been found to have broken competition law, along with retailers JD Sports and Elite Sports, by fixing the retail prices of a replica shirt so the two retailers could “pocket more money for themselves at the expense of fans”, the Competition and Markets authority (CMA) found.
JD Sports and Elite Sports fixed the retail prices of multiple Rangers-branded replica kits and other clothing from September 2018 until at least July 2019, while the club itself also took part in the alleged collusion, though to a lesser extent, by fixing the retail price of adult home short-sleeved replica shirts for around two months from September 2018, the CMA said.
All three companies allegedly colluded to stop JD Sports undercutting the retail price of the shirt offered online by Elite, according to the competition watchdog’s provisional findings.
At the time, Elite was the manufacturer of Rangers-branded clothing and also sold Rangers-branded merchandise directly its online store, and later in bricks-and-mortar shops in Glasgow and Belfast. The only UK-wide major retailer selling those products at the time was JD Sports. Businesses found guilty of breaking competition law can be fined up to 10 per cent of annual turnover.
The CMA said the two retailers have admitted to cartel activity and have co-operated with the watchdog, meaning they could receive reduced fines.
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Michael Grenfell, executive director of enforcement at the CMA, said: “Football fans are well-known for their loyalty towards their teams. We are concerned that, in this case, Elite, JD Sports and, to some extent, Rangers, may have colluded to keep prices high, so that the two retailers could pocket more money for themselves at the expense of fans.”
Rangers FC said it is “committed to operating its business in full compliance with all laws, including competition law, and treats this matter very seriously”.
The club added it would review the CMA’s preliminary findings and submit a response “in due course”.
i contacted representatives for JD Sports and Elite Sports for comment.
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