Safeway reported to OFT

Petrol discounts breach rules, says forecourt trade association
June 18 2002
As expected, Safeway’s discount petrol scheme has been reported to the Office of Fair Trading.

The Petrol Retailers’ Association claims the supermarket operator’s offer breaches competition laws which prevent companies from cross-subsidising one part of their business with another.
Ray Holloway, of the Petrol Retailers’ Association is quoted by the BBC as saying: “It’s so blatantly cross-subsidy of one part of the business by another that I think it warrants attention by the competition authorities.”
Safeway communications director Kevin Hawkins responded by saying the company is confident its scheme is within the law, as well as in the interests of customers.

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