The Enterprise Act introduces the cartel offence for individuals who dishonestly take part in so-called hard-core cartel agreements. The new criminal cartel offence will commence on 20th June 2003.
An offender risks up to five years' imprisonment and an unlimited fine. It will operate alongside the existing regime that imposes civil sanctions on undertakings that breach the Competition Act of 1998's prohibition on anti-competitive agreements.
Immunity from prosecution can be granted to individuals who inform the OFT about the existence of a cartel and who continue to co-operate throughout the investigation. The new guidance sets out the circumstances in which the OFT will issue a 'no-action letter' to an individual confirming that he or she will not be prosecuted for his or her own part in the cartel.
John Vickers, OFT Chairman, said:
"Leniency arrangements help uncover cartels and are in the interest of the economic well-being of UK consumers and the great majority of honest businesses. Leniency arrangements are already working for companies. Our guidance sets out clear, fair and effective criteria for granting immunity from prosecution to individuals who co-operate with the OFT."
Unfortunately for whistleblowers in Scotland, the OFT's discretionary powers to protect informants from prosecution only apply to England and Wales. In Scotland the OFT cannot give guarantees of immunity from prosecution. Co-operation by an individual will be reported to the Lord Advocate who "will take such co-operation into account."
