Supermarkets in further OFT price-fixing probe

The Office of Fair Trading (OFT) is investigating Sainsbury's, Tesco, Morrisons and Asda over the alleged price-fixing of groceries and health and beauty products.

OFT inspectors visited the headquarters of the four supermarkets and those of suppliers Proctor and Gamble on Thursday morning. Unilever and Mars also confirmed that they have received letters asking for information.

The OFT's latest inquiry will run alongside its ongoing investigations into cigarettes and dairy products.

Responding to the OFT's publication on Friday of a statement of objections regarding alleged anti-competitive behaviour in tobacco retailing, the British Retail Consortium said: "No-one should rush to judgement".

It added: "The OFT itself has said ‘It should not be assumed that parties involved have broken the law.' It is scarcely credible that so many businesses could have colluded as the OFT alleges."

Last week the OFT made a public apology to Morrisons and paid £100,000 damages after admitting it was wrong to claim that the chain had been involved in price-fixing over dairy products.

News of the latest investigation comes as the Competition Commission is this week due to unveil the results of a two-year investigation into the relationship between supermarket groups and small suppliers. The commission is expected to announce the creation of an ombudsman to oversee the relationship, as well as to recommend changes to the planning process.