The OFT’s warning follows some cases where private hire vehicle operators have had or appear to have had discussions to fix or co-ordinate prices – including reports of competing operators agreeing new charging scales on a ‘per mile’ basis and also minimum costs for a journey.

Pricing discussions and price fixing amongst competing firms is illegal under the Competition Act 1988, warns the government body. Any business found to participate in these activities may be fined up to ten per cent of its total turnover.

The Enterprise Act 2002 also created a criminal offence for an individual to dishonestly take part in price-fixing or some other form of cartel between competing businesses, with a maximum five years’ imprisonment and/or an unlimited fine.

Stephen Blake, OFT director – Cartels and Criminal Enforcement Group, said that operators need to understand they cannot engage in discussions with competitors over price, although there is nothing to say they cannot increase the price of their services.

He added: ‘The OFT is concerned that there appears to a lack of awareness of competition law in some areas, and have decided to remind the industry of its obligations. However, if further instances of similar conduct comes to our attention, we may take formal enforcement action’.

During the campaign the OFT is working with trade associations, the Licensed Private Hire Car Association, the Private Hire Board, the Institute of Licensing and the National Private Hire Association to spread awareness of the rules. The OFT has also written to local authority trading standards services and taxi licensing authorities informing them of these issues.


Steve Wright MBE, chairman of the Licensed Private Hire Car Association said: ‘Licensed private hire operators including minicabs and chauffeurs should be aware of the fact that fixing fares with competitors is unlawful under competition law. The LPHCA welcomes the Office of Fair Trading’s campaign. We will be publishing further guidance for members to promote full compliance.’


More information on this topic is available at http://www.oft.gov.uk/pricefixing and an information leaflet for private hire operators will be available in the Institute library.