July 14, 2008

Tobacco price-fixing

LONDON — Six retailers and tobacco firms have agreed to pay combined fines of more than 130 million pounds after admitting "unlawful practices" relating to retail tobacco prices, the Office of Fair Trading said.cigarettes

Retailers Asda, Somerfield, First Quench, One Stop Stores and TM Retail plus manufacturer Gallaher agreed to pay 132.3 million pounds (165 million euros, 263 million dollars).

The fines come after the competition watchdog accused 12 firms of price-fixing, by either co-ordinating to link the price of some brands to rival products or exchanging proposed future retail prices between competitors.

An investigation into the six other firms named by the OFT three months ago — the Co-operative Group, Imperial Tobacco, Morrisons, Safeway, Shell and Tesco — is continuing.

OFT chief executive John Fingleton said in a statement Friday evening that companies should set their prices independently, to ensure the markets work well for consumers and the economy.

"The OFT is very pleased that the early co-operation of these parties has enabled the swift resolution of some of this case, which will significantly reduce the costs of pursuing the investigation for the OFT and the businesses concerned," he added.

The OFT investigation covered the period 2000-3. The companies which came to "early resolution agreements" led to a reduction in their fines, the watchdog said.

Even so, the Financial Times said Saturday the sum was still the biggest collective penalty the OFT had handed down.

April 25, 2008

Treasurer supports single tax rate for smoke shop cigarettes

State Treasurer Scott Meacham says he would support the idea of having one single compact rate for all American Indian tribes that sell cigarettesin Oklahoma.
Meacham says he is not bailing out on a multiple-stamp system, but it would be easier to enforce a single rate. He believes that would help Oklahoma move forward with cutting down on smoking while raising more money to benefit better health in the state.
Attorneys from the Oklahoma Tax Commission and tribal smoke shops are currently working on an agreement that would limit the sales of low-tax cigarettes in the state.
The agreement would lift a restraining order and cut down on the number of cigarettes that can be sold with 6-cent tax stamps intended for use near the state’s borders.
Smoke shops that aren’t near a border must sell 86-cent stamps.