UK probe widens price-fixing probe to consumer goods makers

Britain's consumer watchdog has widened an investigation into alleged price-fixing by supermarkets to target some of the world's biggest consumer goods makers, including Procter & Gamble Co. and Unilever PLC.

The two companies said on Monday they had been visited by officials from the Office of Fair Trading, following reports that the agency was investigating the pricing of health and beauty products, groceries and cleaning goods at Britain's big four supermarkets.

The probe continues a recent aggressive stance on potential price-fixing and collusion adopted by the regulatory agency, which has drawn criticism from some business leaders who believe it is targeting big, profitable names.

The tobacco, dairy, airline and construction industries have all been put under the microscope by the agency since it gained a new chairman two years ago.

Under John Fingleton's watch, fines have soared, but the agency has also been criticized by the High Court for seeking "sensationalist publicity" over its recent inquiry into dairy price-fixing by supermarkets.

It last week made a public apology and paid 100,000 pounds ($200,000) to Morrisons to settle a defamation action brought by the supermarket chain over that inquiry. The OFT acknowledged that a news release it issued regarding the investigation contained "serious errors."

The agency declined to comment on its latest line of questioning to supermarkets and the multinational producers.

Tesco PLC, one of Britain's big four supermarkets, said it believed that the OFT had sought information from a "range of suppliers and retailers."

Procter & Gamble, which owns a host of multinational brands including Fairy, Duracell and Pampers, said the OFT had visited its offices last week.

Unilever, which owns brands including Ben & Jerry's ice cream, Dove soap and Flora margarine, said it had also received a visit and a request for information.

Reckitt-Benckiser PLC, which owns Dettol and Clearasil, said it had received a written request "for some limited information."

Fines imposed by the OFT jumped 76-fold to 237 million pounds ($472 million) last year, including price-fixing penalties of 121 million pounds ($240 million) for British Airways PLC and a collective 116 million pounds for a group of supermarkets and dairy companies _ the two biggest fines in the OFT's history.

The office can give warnings or orders, but also has the power to take legal action or impose financial penalties.

In the past two weeks alone, the regulator has accused tobacco companies and several major retailers of colluding on cigarette prices and named more than 100 construction companies, including Balfour Beatty PLC, in a major investigation into bid-rigging.