Price-fixing warning issued to companies supplying equipment and services to disabled students

Price-fixing warning issued to companies supplying equipment and services to disabled students

The Competition and Markets Authority (CMA) has warned business supplying services and products to handicapped university trainees, following issues that there might have been price-fixing.

The CMA has actually sent advisory letters to a variety of companies, reminding them of their obligations under competitors law, after learning of claims that some suppliers conspired over the cost of essential services and equipment.

In a statement about the issues surrounding price-fixing, the CMA stated: “Price-fixing is a major breach of competitors law and can cheat individuals out of a lower price, which might have been readily available if competition was working effectively.”

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Handicapped trainees who are eligible can get funding through the Disabled Student Allowances grant scheme, handled by the Student Loans Company (SLC), which acts on behalf of the UK and Welsh federal governments education departments.

” We rely on that the letters we have actually provided, and todays announcement, send out a clear message. Any suppliers taking part in price fixing with competitors, or other illegal collusion, need to evaluate their practices and make changes now.”

The CMA has actually not made a legal finding as to whether competition law has been broken at this phase however states it will keep this sector under evaluation, remaining open to the possibility of further action if these issues are not fully addressed.

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While the CMA has actually been considering these claims, SLC has actually informed the CMA that it is making a number of changes to the way it procures items and services for handicapped trainees. The changes will increase cost transparency and competitors among companies and should therefore limit the potential for anti-competitive behaviour to occur.

Because some suppliers concurred costs prior to offering quotes, the CMA is concerned that SLC– and so eventually the taxpayer– might have paid over the odds for certain goods and services. This supposed activity could also have reduced the overall amount which handicapped trainees have readily available for purchasing equipment through the plan.

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Under the existing system, an independent needs assessor will offer SLC with suggestions for services and products along with quotations from suppliers and SLC will work with the trainee to put the assistance in place.

Michael Grenfell, the CMAs Executive Director of Enforcement, said: “Healthy competition is the cornerstone of getting the very best deal so we are concerned if companies may be doing something to threaten that. It is particularly uncomfortable in this case if the interests of handicapped trainees are impacted, and if public financing is struck.