The UK Competition and Markets Authority (CMA) is strengthening its enforcement work against illegal cartels and offering a reward of up to £250,000, increased from £100,000, to people who tell the CMA about unlawful cartel activity they have witnessed.

Illegal cartels – businesses which cheat their customers by agreeing not to compete in order to keep their prices high – stop people and other businesses from getting a fair deal as well as stifling competition. Businesses that participate in cartels, knowing them to be illegal and a cheat on their customers, often go to great lengths to keep the cartel hidden and secret. This makes them difficult to detect, and so harder to bring to an end.

The CMA’s ‘Cheating or Competing’ campaign has advice for people and businesses to help them spot, report and deter illegal anti-competitive practices. It encourages people who have witnessed illegal activity to report it by offering a reward as well as protecting their anonymity.

The CMA also has a range of guidance to help businesses and directors understand more about how to comply with competition law. Businesses found to have been involved in illegal cartels can be fined up to 10% of their annual turnover, individuals directly involved can face up to 5 years in prison, and company directors can be disqualified from holding director positions for up to 15 years.

The reward is separate from the CMA’s leniency programme where a business or an individual that has participated in a cartel may escape sanctions if they come forward with information about the cartel, provided certain conditions are met.

To report cartel activity, you have witnessed: email cartelshotline@cma.gov.uk or ring 0800 085 1664 or 020 3738 6888.

Rewards are at the discretion of the CMA so there is no right to receive a reward. However, the CMA will pay a reward if the information concerned is significant in nature and leads to enforcement action by the CMA against those involved in cartel activity.