'Price fixing' probe at Monopoly

THE COMPANY that makes the legendary Monopoly board game is being investigated by the Office of Fair Trading over alleged price fixing. US-owned Hasbro is Britain's biggest toy group with between 14% and 18% of the £1.7bn-a-year market, making, licensing or distributing games and toys such as Action Man, Scrabble, Trivial Pursuit and My Little Pony, as well as Monopoly. It also has deals to make and distribute Harry Potter merchandise.

West London-based Hasbro UK said: 'We can confirm that we are aware of an OFT investigation and we are co-operating with the OFT.'

The OFT would not confirm or deny that the investigation involved other firms, but said the investigation is 'formal', which means that the initial suspicions or complaints it received are serious enough to warrant a detailed probe.

A spokesman for the OFT said: 'We can confirm that we are conducting an investigation into alleged resale price maintenance on children's toys.'

If the complaint is upheld the OFT has the right to fine a company up to 10% of its British turnover for three years running, which could mean up to £26m for Hasbro UK.

The OFT can refer a case to the Competition Commission for even fuller inquiry, and the commission's findings and recommendations then go to the Trade and Industry Secretary Patricia Hewitt for a decision.

The Competition Commission said: 'We have yet to hear from the OFT about its investigation, and if it were referred to us this would be the first time we have been asked to look at uncompetitive practices in the toy industry.'

Britain is one of the world's biggest toy markets with an average spend on toys and games of more than £50 a year, the highest in Europe.

Under the Competition Act, which came into full force in March last year, the OFT has wide powers to investigate and punish abuse of a dominant British market position by any one firm, or agreements between companies or trade associations meant to 'prevent, restrict or distort' competition. The OFT has set up a 'cartel hotline number' (020 7211 8888) for whistle-blowers. OFT investigators can demand the production of documents or seize them.