6th
Mar 2017
The CMA (Competition and Markets Authority) in two historic cases has slapped agents, found to be price fixing, with over £1million in fines. The Authority is committed to fighting the illegal practise and will take on any agents irrespective of size.
Stephen Blake, the CMA's senior director of cartel enforcement, said: “Price-fixing cheats customers and we are committed to tackling it regardless of the size of the businesses involved. We have taken action against estate agents before, and will do so again if firms break the law."
He added: “Moving home is expensive and this shouldn’t be made worse by estate agents conspiring to deny their customers the best possible deal, by agreeing not to compete on fees."
In the CMA's latest case against four Somerset estate agents involved in price fixing practices who pleaded guilty will now have to pay the CMA more than £370,000.
The four estate agents were found guilty of operating illegal practises as a cartel in the Burnham-on-Sea area.
However one other agent will not be fined by the CMA “as long as it continues to co-operate", it acted as the 'whistleblower' when first to admit its involvement in the cartel.
The Authority said that the estate agents agreed to set a minimum commission rate for sales of 1.5%.
In a previous action against three members of an Estate Agent association eighteen months ago, the CMA was successful when the agents were fined £735,000.
They were found guilty of colluding together by not advertising their fees or discounts in a local newspaper which is part of a national publishing company. They also agreed with the publisher that any agents wishing to advertise in the newspaper would not be able to advertise their fees or discounts.
News Archive »