Usually a whistle-blower is taking action against a large corporation, but in this case, the whistle-blower is Wal-Mart itself. Apparently Wal-Mart tipped off the UK's Office of Fair Trading that large manufacturers and large grocery stores might be involved in some sort of price fixing scam. Now these major companies, many of whom supply Wal-Mart, or are Wal-Mart's competition, are under investigation. By tipping the OFT off, Wal-Mart avoids a fine if any illicit activity is discovered. What a deal! Wal-Mart avoids a massive fine, and their competition is under investigation. The only negative side effect is that they've pissed off some of their suppliers (but what can they do, it's not as if they can stop selling to Wal-Mart). Imagine if whistle blowers were treated like this. Instead of getting fired, harassed, and losing their livelihoods, they would get a nice raise, a promotion, and maybe have to suffer a few glares from coworkers. Again, what a deal!
Here's the article from the Telegraph:
Wal-Mart was whistleblower in OFT's supermarket investigation
Wal-Mart, the world's biggest retailer, was the whistleblower behind the Office of Fair Trading's current probe into alleged price fixing of food and toiletries, The Sunday Telegraph can reveal.
The investigation has embroiled some of the world's largest consumer goods manufacturers such as Unilever, Procter & Gamble and Reckitt Benckiser, as well as UK retail giants, including Tesco and J Sainsbury.
In blowing the whistle, Wal-Mart, which owns the Asda chain, has guaranteed itself immunity from a fine should the OFT discover any cartel activity. Any company found guilty could be fined up to 10 per cent of its annual worldwide sales, which in Wal-Mart's case would be $37bn (£18.7bn).
The move is likely to make the US retailer deeply unpopular with the companies involved, many of whom are its largest suppliers.
Last weekend this newspaper revealed that around 100 OFT officials and lawyers raided the offices of the country's biggest supermarkets ten days ago over allegations of price-fixing involving dozens of popular household brands, such as PG Tips, Aquafresh toothpaste and Andrex toilet roll. Consumer goods companies in the UK and the US were also visited or asked to provide pricing information.
It is understood that following an earlier OFT investigation into price-fixing of dairy products, which resulted in some supermarkets and dairies paying fines of £116m, senior Wal-Mart and Asda executives made the decision to go to the OFT with new information.
All the companies involved in the probe have strenuously denied that they are involved in any cartel activity, and Asda's decision to tip off the OFT does not mean that price-fixing has necessarily occurred. The OFT has refused to comment on the investigation.
Legal experts believe it will be at least two years until the OFT publishes any findings.
"Things will go quiet and it could drag on for two years. If the OFT gets a Statement of Objections out within a year I will be amazed," said one executive.Other senior supermarket executives have dismissed the raids as a "fishing expedition". However, under its remit, the OFT needs to have a so-called evidential threshold before it can launch a raid, meaning that it must have good reason.
Last week the Competition Commission, the anti-trust watchdog, completed a separate two-year investigation into the supermarket sector. The commission gave the sector a largely clean bill of health, although it said that it had uncovered emails that "might raise issues of co-ordination" between supermarkets and suppliers.
Peter Freeman, chairman of the Competition Commission, said that the watchdog had passed on information to the OFT as part of the latter's new investigation.
He added that there was no contradiction between the commission finding the sector largely competitive and the OFT examining alleged price-fixing.
Posted by Taylor - May 6, 2008 03:00 PM - In The News
Well if here in buffalo the market team can offend ceo edwardo and make fun of him without knowing because of the way he talks.
Which should offend many latinos out there. Then what would it matter to Walmart the power over the market team is so strong. Well the same goes Walmart they control the suppliers so if they get pissed off they just screw them just as long as they dont get screw.
Posted by mee - May 6, 2008 04:17 PM
thanks much, dude
Posted by tedsHasysype - May 8, 2008 07:56 AM
Wal-Mart was whistleblower in OFT's supermarket investigation