JTI could seek refund of £50 million Gallaher price-fixing fine

Japan Tobacco International is expected to ask theUK’s Office of Fair Trading (OFT) to refund a £50.3 million fine imposed on Gallaher following allegations that it was involved in a price-fixing cartel, according to an Electronic Telegraph story.

In 2010, the OFT fined a number of tobacco companies and retailers a total of £225 million for ‘unlawful practices’ and inflating the prices of cigarettes.

Gallaher, which was bought by JTI in 2007, was among several of the accused companies that chose to pay the fines to avoid a costly and lengthy legal process.

But six of the companies, including Imperial Tobacco, Asda, and the Co-operative Group, chose to appeal against the penalty.

This challenge was successful when, last year, the OFT’s ruling against the six companies was quashed by the Competition Appeal Tribunal.

Earlier this year, Martin McColl, a chain of neighbourhood convenience stores, secured a £2.6 million refund from the OFT, despite not having appealed against the ruling itself, and JTI is said to be considering the situation carefully.