High-strength alcohol schemes: competition law issues for retailers
Published 25 March 2015
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If you are approached by a local council about joining a scheme to limit the supply of high-strength alcohol in your local area, you should take care to avoid the risk of breaking competition law.
High strength alcohol includes any alcohol product over 6.5% ABV
Some local authorities are implementing schemes to tackle problems associated with street drinking by encouraging retailers to withdraw high-strength alcohol from sale.
But you may risk being fined if you either agree with other retailers, or share with them your plans, to stop selling high-strength alcohol.
Advice to avoid breaking competition law
If your business sells high-strength alcohol make sure that you comply with competition law:
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speak with council officials about your plans on an individual basis. Don’t let them tell you about what other retailers may be doing
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if council officials try to tell you what other retailers may be doing, tell them you’re not interested and you’re not willing to discuss it
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don’t share information with competitors about whether you plan to stock high-strength alcohol or let your competitors share their plans regarding high-strength alcohol with you
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don’t make a commitment to sign up to a scheme in a meeting where other retailers are present
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don’t collaborate with other retailers to agree to withdraw high-strength alcohol
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don’t announce your participation in a scheme until it has been launched
You can decide to join a scheme and stop selling high-strength alcohol - but don’t discuss this or agree to this in co-operation with other retailers.
The impact of breaking competition law
Competition law applies to firms – including retailers – engaged in commercial activity. Penalties for breaking the law include significant fines of up to 10% of your annual turnover.
The CMA has engaged with local councils to help them make sure they do not ask businesses to break the law or risk putting them in a position where they may do so.