OFT in new supermarket crackdown

Britain's four biggest supermarkets are under investigation by the Office of Fair Trading (OFT) for fixing prices of health, beauty and grocery products. The OFT also contacted some of their suppliers such as Unilever, Procter & Gamble, Reckitt Benckiser and Mars. News of the latest investigation came days after the OFT announced it was looking into allegations that tobacco firms and 11 retailers, including Asda, Sainsbury's and Tesco, had fixed the price of tobacco products. The banking and housebuilding sectors have also been the targets of the OFT recently. Companies found guilty of price collusion can expect fines under the Competition Act of up to 10% of turnover. Under the 2002 Enterprise Act, cartel-like behaviour may also carry a jail term of up to five years for directors or senior executives involved. The number of recent investigations has fuelled criticism from some business leaders over the watchdog's tactics, which have been described as overly aggressive since the OFT's current chief executive John Fingleton took charge at the end of 2005.

BBC News