Stevenage clubs warned over 'price fixing'

Operators of three nightclubs have been warned they may be breaching competition law by agreeing not to sell drinks below £1.50.

Under a "voluntary" agreement, supported by the police and council, the venues in Stevenage's Leisure Park won't sell alcoholic drinks for less than £1.50.

Participating outlets are Chicago Rock Cafe and Jumpin' Jaks, both owned Atmosphere Bars and Clubs, and Luminar's Liquid & Envy.

A spokesperson for the licensees said: "We think this agreement coupled with a wide range of entertainment and dining establishments available, makes Stevenage Leisure Park a fantastic destination choice." 

Cllr Richard Henry, Stevenage's executive member for safer and stronger communities, said: "Stevenage is fortunate to have a vibrant night time economy.

"However, we must make sure that people behave sensibly and I am very pleased to see the licensees on the Leisure Park working together in partnership with ourselves and the Police to discourage irresponsible drinks promotions."    

'Price fixing'​

Minimum pricing agreements adopted elsewhere in recent years have folded after warnings from competition authorities that they could be interpreted as price fixing.

But schemes are still springing up.

For example, 11 bars in Portsmouth made an agreement not to sell below £1.50 per drinks in the summer following a spate of violence. 

Morning Advertiser legal editor Peter Coulson said of the Stevenage agreement: "They could be seen to be breaching competition law by making agreements not to sell below a certain price."

Coulson also questioned the need for such a move because irresponsible drinks deals are banned under the mandatory licence conditions that came into force in April.

However, a council spokesman told the MA that it does not amount to price fixing because the agreement doesn't dictate the actual price, it just says drinks can't be sold for less than £1.50.

Coulson disputed this, saying the price is still being dictated.

The spokesman added that some other licensees in the town are "now looking to join the scheme at some point in the future."

Risks​

British Beer & Pub Association communications director Mark Hastings said: "This is classic example of the risks to which local authorities and police can inadvertently expose well-intentioned licensees. 

"However well-meaning, agreements on price are against competition law and it is the businesses that will pay the penalty, not the local authority or police."

Luminar and Atmosphere Bars and Clubs have been unable to comment at the time of publication.