DIRECTORS at two Wokingham-based estate agents have been disqualified for their roles in an illegal price-fixing cartel.
The Competition and Markets Authority (CMA) has ruled that Stephen Jones and Neal Mackenzie, were directors at estate agents Richard Worth – not the company currently trading under that name – and Michael Hardy respectively, are not allowed to serve as directors of any companies or be involved in the management of any company based in England, Scotland or Wales for six-and-a-half years.
Last year, the CMA announced that the two companies, along with Romans and Prospect estate agencies, took part in a cartel between September 2008 and May 2015.
They set minimum rates for commission on the sale of residential properties in Wokingham, Winnersh, Crowthorne, Bracknell and Warfield.
As part of this, the companies exchanged confidential information on pricing and held meetings to make sure all members of the cartel enforced and maintained the agreed minimum rates.
The CMA says that this meant that homeowners in the affected areas were denied the chance of securing the best possible deal when selling their property because they were unable to meaningfully shop around all their local estate agents for a better commission rate.
Three of the four estate agents – including Richard Worth and Michael Hardy – were fined more than £600,000 for their illegal behaviour.
Romans and Prospects qualified for leniency under the CMA’s leniency policy. As such, it will not seek the disqualification of the cooperating directors, as long as the estate agents continue to comply with the terms of their agreements.
Michael Grenfell, executive director of enforcement at the CMA, said: “Selling your home can be a stressful and expensive experience, and one that shouldn’t be made harder by estate agents conspiring to cheat homeowners out of the best deal.
“Company directors have an important responsibility to make sure their firms don’t take part in this kind of anti-competitive behaviour.
“Today’s disqualifications should send a clear message to the sector – stay on the right side of the law or face the consequences.”
Neal Mackenzie, who was director of Michael Hardy, said: “I made a mistake 12 years ago, I have already publicly acknowledged that error and accept the consequences for me personally.
“I will now use my energies to support Barnaby Styer and Ben Biggs, the new directors of the Michael Hardy estate agents.”
The CMA runs a Cheating or competing? campaign, which aims to educate businesses about which practices are illegal and urges people to come forward if they suspect a business has taken part in cartel behaviour, such as rigging contracts or price-fixing.
It has also issued a range of guidance to help businesses understand more about how to comply with competition law.
All local estate agents affected by this investigation have been contacted for a comment. We will update the story appropriately.
There will be more on this story in Thursday’s Wokingham Paper.
