SMEs 'unaware' of competition laws

Many small and medium-sized businesses are unaware of the rules on competition, according to research by the Office of Fair Trading (OFT).

The study showed that 80% of firms with more than 200 employees were aware of the Competition Act, compared with just 49% of those employing between ten and 19 employees.

Furthermore, only two out of every five UK businesses have taken action to make sure they comply with the legislation.

The OFT has now launched a new campaign, 'Championing Competition', which will highlight the positive aspects of competition for business.

The campaign also aims to help firms avoid anti-competitive behaviour, such as bid-rigging and price-fixing, which can lead to significant fines.

Sir John Vickers, chairman of the OFT, said, 'This campaign will aim to improve understanding of competition law and how it can help SMEs. It is important for SMEs to be aware of their rights and responsibilities under competition law so that they can take best advantage from competitive markets'.