Proctor & Gamble settles spying row with Unilever

Proctor & Gamble has paid compensation to Unilever after spying into its hair care business. The total payout is believed to be around £6m.

Investigators working for P&G rifled through Unilever's rubbish bins to gather intelligence about its operations.

The two companies agreed to settle the case to avoid a threatened court action.

Three P&G employees have since been fired.

Negotiations began after P&G senior management discovered that outside contractors had obtained Unilever hair care marketing information using means that did not meet P&G's rules.

The spying - which had involved third party and inhouse investigators - had been taking place since Autumn 2000 and continued through Spring 2001.

P&G chairman John Pepper says: "I have been personally involved in ensuring that none of the information has been used or will be used in any P&G plans.

"This agreement will have no impact on the effectiveness of our product or marketing plans and will not inhibit fair and vigorous competition in the marketplace."