OFT: Legislation needed for minimum price talks
A minimum price for alcohol could be set if there were "exceptional and compelling reasons of public policy," according to the Office of Fair Trading (OFT).
Labour MP John Grogan wrote to the OFT in November to ask whether the off-trade could voluntarily agree a minimum price without contravening competition laws.
OFT chief executive John Fingleton said: "We would strongly advise the industry and its individual members to seek independent legal advice before entering into any such agreement or information exchange given the potential serious consequences for companies, trade associations and individuals of failing to comply with competition law.
"These include substantial financial penalties on companies, direct legal action by third parties for damages and, where dishonesty is proved, financial penalties on companies, direct legal action by their parties for damages and, where dishonesty is proved, financial penalties on and imprisonment of individuals."
However, the OFT said the Government could legislate to change the Competition Act if there were "exceptional and compelling reasons of public policy".
Fingleton added: "In considering whether this test is met in a particular case, our understanding is that the Secretary of State would need to consider whether the proposed exclusion may be considered a proportionate measure that is necessary to the achievement of a clearly defined public policy benefit."
The OFT said the alternative was "individual decisions taken by the appropriate licensing authorities".
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