CMA: Updated Reporting Guidance Clarifies Infringement Reporting

• The CMA has updated its guidance for reporting competition and consumer law breaches, including whistleblowing procedures.
• The CMA does not handle individual complaints or provide legal advice; it focuses on systemic issues across various market sectors.
• Individuals can receive up to £250,000 for reporting cartel information that leads to a successful investigation.
• Businesses or individuals involved in a cartel can contact the CMA's leniency program by calling 020 3738 6833.
• As a 'prescribed body,' the CMA receives whistleblowing reports and offers a guide on how to report while protecting identity.

For legal professionals advising clients on compliance with UK competition or consumer law, understanding these revised procedures is crucial to ensure clients are fully aware of their obligations and the available avenues for reporting or seeking leniency.

The Competition and Markets Authority (CMA) has recently released CMA updated reporting guidance, offering enhanced clarity on the processes for individuals and businesses to report potential infringements of UK competition and consumer law. This comprehensive update includes specific new guidance on whistleblowing procedures and general mechanisms for lodging competition or consumer law complaints. For legal professionals advising clients on compliance with UK competition or consumer law, understanding these revised procedures is crucial to ensure clients are fully aware of their obligations and the available avenues for reporting or seeking leniency.

It is important for clients to understand the scope of the CMA's involvement. The authority explicitly states its inability to intervene in or offer counsel on individual complaints, nor does it provide legal advice. Instead, for specific personal issues, individuals are directed to contact relevant consumer advice organizations in their area. The guidance clarifies that the CMA's remit for investigating wrongdoing extends across various domains, including mergers, consumer protection, competition enforcement, and digital markets, providing a broad framework for potential reports.

A significant component of the CMA updated reporting guidance focuses on the detection and deterrence of cartels. These are defined as illicit arrangements where two or more rival businesses conspire to act in concert rather than competing independently. Such collusive practices are strictly illegal under UK competition law and can lead to severe repercussions for those involved. The CMA actively encourages the reporting of such anti-competitive activities.

Individuals who are not directly implicated in a cartel but possess knowledge of its existence are urged to report cartel to CMA. The authority offers a substantial financial incentive, with rewards of up to £250,000, for information that proves instrumental in initiating an investigation. Conversely, for businesses or individuals who have participated in a cartel, the CMA operates a leniency programme. Contacting this program, specifically via telephone at 020 3738 6833, provides an opportunity for those involved to come forward, cooperate with the investigation, and potentially mitigate the penalties they might otherwise face. This avenue is a critical consideration for clients facing potential exposure.

The CMA functions as a 'prescribed body,' which means it is legally empowered to receive whistleblowing disclosures from employees or former employees regarding potential breaches of competition or consumer protection law by their employers. The newly published CMA whistleblowing guide provides detailed instructions on how and when to make such a report, outlining the measures the CMA employs to safeguard the whistleblower's identity and explaining the subsequent steps taken after a report is submitted. This mechanism is a vital tool for upholding UK competition law breach reporting.

The guidance also includes essential security protocols for verifying communications purportedly from the CMA. The authority confirms that all official emails will originate exclusively from addresses ending in '@cma.gov.uk' and unequivocally states that it will never solicit bank account or payment details. In cases of doubt regarding the authenticity of any communication, individuals are advised to cross-reference contact details published on GOV.UK, either through the General Enquiries team or specific case pages. Crucially, the CMA cautions against sharing private information, responding to unsolicited text messages, downloading attachments, or clicking on links in unverified emails. Furthermore, the guidance notes that in certain circumstances, reporting concerns to an appropriate industry regulator may be an alternative or complementary course of action, particularly for CMA consumer protection reporting.

Lawyers advising clients on UK competition or consumer law compliance must be aware of the updated procedures for reporting potential breaches to the CMA, including whistleblowing and cartel information, to ensure clients understand their obligations and the avenues available for reporting or seeking leniency. This guidance clarifies the CMA's role and limitations, which is vital for managing client expectations and strategy.

Source: Original reporting via GOV.UK