Sindy maker fined nearly €8m

Toy manufacturer Hasbro has been fined almost £5m (€7.8m) by the UK Office of Fair Trading for preventing distributors selling its toys and games below list price.

An OFT investigation found Hasbro and 10 distributors broke competition law by entering into price-fixing agreements.

The distributors in the case escaped any fines because the OFT found they had no choice but to accept Hasbro's threat not to go below the list price.

Hasbro has responded by announcing it is planning to appeal against the OFT's decision.

Some of the firm's best-selling toys were at the centre of the inquiry, including Action Man, Monopoly, Pictionary and Twister.

In a statement it said: "We are surprised and disappointed at the level of the fine imposed by the OFT, which we believe to be disproportionate.

"The activities cited by the OFT occurred over a very short period of time and through a limited number of wholesale distributors.

"Hasbro believes that such activities had no significant effect on competitiveness within its small network of distributors or on consumers."

The OFT had initially proposed to fine Hasbro £9 million but agreed to reduce it because the company co-operated fully with the investigation.

The £4.95m (€7.75m) penalty is still the largest the OFT has imposed since it gained new powers under the Competition Act 1998, which came into force in March 2000.