The settlement, which was agreed today (9 January), saw the sports retailer set aside over £100,000 in compensation for consumers after what marks the first successful case brought by the consumer group since it gained the power to represent consumers in 2005.
Five-hundred consumers, accounting for a total of 900 replica shirts, joined the group following an advertising campaign in regional papers. The consumers are eligible for compensation of £20 per shirt.
The sum put aside by JJB means anyone able to prove they bought a replica shirt from the sports retailer between the 2000-01 and 2001-02 seasons will be able to claim £10 in compensation from any branch until 2009.
JJB, which was advised by DLA Piper competition partner Martin Rees, will also pay “reasonable costs” to the consumer body.
Which? was advised by Clyde & Co, with Matrix Chambers’ Rhodri
Clyde & Co dispute resolution partner Julian Connerty said: “We are all very happy for the great victory for Which?. This is a very successful outcome for their first use of consumer representation powers.”
The claim – heard by the Competition Appeals Tribunal – follows an Office of Fair Trading investigation in 2003 that pursued 10 businesses – including JJB Sports, Allsports, Umbro, Manchester United FC and the Football Association – for operating a price-fixing cartel. The businesses were fined a combined total of £18.6m.
Clifford Chance competition partner Elizabeth Morony commented: “This is a neat solution, satisfying both the individuals which signed up to the claim and those willing to go along to collect their £10. However, I am sceptical that this decision will change the face of competition law.”
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