Devika Bhat
We've made some changes
to The Sunday Times
Hundreds of thousands of consumers could receive payouts after Which?, the consumer group, announced that it was intending to sue JJB Sports on behalf of fans who were overcharged for football shirts.
The consumer body said that the case applied to total of one million shirts, and is appealing to the hundreds of thousands of customers who bought them to come forward. It said that a number of people have already come forward.
Using new legal powers granted under the Enterprise Act of 2002, Which? is the only body in the UK so far given powers to launch representative action on behalf of groups of consumers. It is being advised by Clyde & Co, a London law firm, which has already placed adverts in several regional papers encouraging football fans who bought the shirts in question to join the action.
JJB Sports was one of seven companies fined by the Office of Fair Trading in 2003 for running a cartel that fixed the price of England and Manchester United shirts during 2000 and 2001. The company strongly denied any wrongdoing.
Although the OFT ruling forced the company to pay £6.7 million to the Government, Which? is now seeking to claim damages to pay back the customers who were overcharged and is urging those who bought England and Manchester United shirts in 2000 and 2001 to make contact.
The consumer body is suing JJB Sports on behalf of customers who bought shirts from any one of the seven companies that were fined by the OFT, the others being: Allsports, Blacks Leisure Group, Manchester United, Sports Soccer, JD Sports and Umbro Holdings. This is because JJB Sports was the only firm still contesting the OFT’s decision at the time when Which? got its new legal powers.
If JJB Sports is told to pay out compensation, it could then try to claim some of that money back from other firms.
Malcolm Coles, online editor of Which?, told Times Online that hundreds of thousands of people had been affected by the price-fixing and that the action was a “test case”, which could have wide-ranging implications for other companies.
He gave warning that if Which? was successful in its claim, the consumer body had “others in mind” against whom it could also potentially launch proceedings.
Ingrid Gubbay, campaigns lawyer for Which?, said that it was hoped that the legal action against JJB Sports would at the least, lead to compensation of up to £20 per shirt – the amount it believes consumers had been overcharged.
Mr Coles said: “This is about football fans standing together united and saying they don’t want to be ripped off. We hope it will soon be payback time for JJB Sports. They ripped off their customer, so we think it’s only fair they should have to pay them back.
“A case like this has never been launched before so we need as much evidence as we can get. We can’t promise a big payout, but we’ll do all we can to get justice for consumers.”
He added that those affected should get in touch, even if they no longer have a receipt, as they may instead be asked to provide credit card details, photographic evidence or even a legally-binding declaration that they bought the shirts.
The group said its lawyers will take representative action on behalf of all customers affected on a no win, no fee basis and that consumers would not be charged anything for taking part in the test case.
Mr Coles said that JJB Sports had two weeks to respond and that after this time, Which? will consider filing the action at the Competition Appeals Tribunal, which could rule that the company should reimburse customers. Which? will divide any compensation between all the consumers it ends up representing in the case.
The price-fixing case marked one of the largest investigations of its sort in the country. Four of the firms involved, including JJB Sports, appealed against the level of their fines, leading to the Competition Appeal Tribunal announcing revised penalties in 2005 which totalled more than £16 million across all the companies.
JJB Sports was the only firm that continued to fight its fine, but the Court of Appeal upheld the £6.7 million fine against the Wigan-based sports clothing chain. The company said today: “JJB Sports notes the Which? announcement that it intends to take legal action against JJB Sports for the sale of replica football shirts during the alleged price fixing of 2000-2001.
“JJB Sports is in consultation with its legal advisers and will make a formal response in due course.”
Fans who think they are affected should go to the Which? website at www.which.co.uk/football-shirts.
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I think its wrong for any organisation to price fix regardless of the product it sells or the service it supplies. To say that its the consumers fault for investing in a shirt from a football team that a paid millions is stupid, the footballers maybe paid millions but i bet the consumers aren't.
Claire, Harlow,
Under the sales of goods act, the customer saw a product, accepted the asking price, exchange payment for goods, thereby entering into a lawful binding contract of which both parties (the customer and the seller) were satisfied. The price was held at a non competitively high price by mutual agreement between some suppliers/retailers.
Is 'Which' going to champion the Great British public for our over-inflated artificially high fuel prices? Hmmm, I doubt it very much......Can someone smell an air of double standards??
Adrian, Camborne, Cornwall
How much were these shirts anyway if they are expecting £20 back? Just goes to show that football fans are not the brightest if they are happy to pay such exorbitant prices. I, too, hate football and so does my son. I am fed up of the millions involved with the top echelons of the game. Rooney is rumoured to be worth £21 million. A soldier patrolling in Afghanistan is earning less than the minimum wage per hour. Where is the justice in that?
Elaine, Taunton,
I think this is all just so much nonsense ,
If you dont want to pay the price then dont buy the shirt.
If you agree to pay the price then be happy with what you have. I for one am sick of all this obsession with the quest for a perfect world. Its this same mentality that has shut all the schools because of an inch of snow. Life isnt perfect ,
there are dangers / costs and they are part of life.
I once heard a very true statement that whilst not exactly relevant does put things in perspective.
Life itself is a sexually transmitted condition and it is invariably fatal !
So get on with your life and stop whinging.
barry evans, derby, uk
Some day, perhaps the UK will be able to get over itself and introduce genuine consumer -- and for that matter, civil - protections. This is a step in the right direction, but it;s much weaker than the legal tools available to consumers in the US, for example. Why are British consumers not able to band together and demand compensation from companies that have wronged them, without relying on the good will of groups like Which? If high street banks, for example, knew they could face costly class action suits, they would probably reconsider some of their famously underhanded ways of doing business. But British consumers seem all too willing to wait patiently in line --oope, in the queue-- be it on the high street or on the phone with a call center in India...
Ben, London, UK
JJB shouldn't have to pay a penny to anyone. No one put a gun to the consumer's head and told them to buy.
Kache Chitauro, London,
Actually, you may not need the shirts or receipts. This is the first case of its kind in the UK, so one point to be settled is what counts as evidence.
Obviously, shirts and receipts are the best evidence. But photographs may be enough (eg your holiday snaps!). And Which? will be asking for statements of truth to be acceptable. (I'm the editor of which.co.uk by the way!). These will be legal statements that you did buy the shirt (so lying would be perjury).
The members of the cartel have been been found guilty, so we're hoping the court won't take a strict view of proof seven years on.
So if you did buy one of the affected shirts from one of the cartel retailers, please do come to www.which.co.uk/football-shirts and register yoru claim.
Malcolm Coles, London, UK
Don't like football and ALWAYS encouraged my 2 sons to do likewise. It worked for me (buy a kit - you must be kidding!!). Sad old peeps funding a huge and expensive game. Why can't they ban the game altogether?
Dave, Hounslow, Middlesex
I live in Thailand, a country rife with counterfeit products of all kinds, but this misses the point. This type of product is made in sweatshops in Countries like Thailand and costs only 2-3 pounds or less per shirt to make. Besides the retailers is it also the supposed manufacturers themselves who are ripping people off as charging even 40 pounds for something that costs a fraction to produce is criminal.
It is time that all businesses were brought to book, and allowed only to charge a reasonable mark-up on any product. Every year we see the figures showing that this company has made 'X' millions in profits and that company 'Y' billions. It is obscene, Company Directors and Chief Executives, get rich through the sweat of severely underpaid workers and what can only be fairly described as theft from consumers.
I call for all for all Chief Executives to be jailed and made to repay some of their ill gotten gains.
Graham, Pattaya, Thailand
Actually, you may not need the shirts or receipts. This is the first case of its kind in the UK, so one point to be settled is what counts as evidence.
Obviously, shirts and receipts are the best evidence. But photographs might be enough (eg your holiday snaps!). And Which? will be asking for statements of truth to be acceptable. (I'm the editor of which.co.uk by the way!). These will be legal statements that you did buy the shirt (so lying would be perjury).
The members of the cartel have been found guilty, so we're hoping the court won't take an overly strict view of proof seven years on.
So if you did buy one of the affected shirts from one of the cartel retailers, please do come to www.which.co.uk/football-shirts
Malcolm Coles, London, UK
Over the years I bought many football shirts for my kids as they grew. They were all expensive but as the kids wanted them I bought them. We dont have the shirts or the receipts any more, so there's nothing monetary I can gain from this, just the confirmation that they were very expensive pieces of polyester..
M W, Watford,