A FORMER president of the Citroen Dealers Association has been given a suspended jail term and his company fined €20,000 for being involved in a price-fixing cartel.
Both he and his company were prosecuted by the DPP on foot of an investigation by the Competition Authority. It is the second such conviction involving Citroen dealerships in the northeast.
At Trim Circuit Court yesterday, Jack Doran (58), Homestead, Minnistown Road, Bettystown, Co Meath, pleaded guilty.
The charge said that he, as a director of Ravensdale Trading Ltd which trades as Jack Doran Motors, entered into an agreement which had as its object the prevention, restriction or distortion of competition in the motor vehicle trade in Leinster by directly or indirectly fixing the selling price of Citroen vehicles.
He also pleaded guilty on behalf of Ravensdale Trading Ltd to a second such offence. Both offences took place between June 9th, 1999, and May 18th, 2002, contrary to the Competition Act 1991.
The court heard he was one of three directors of the company.
Thomas Fitzpatrick, a senior officer with the Competition Authority, told Denis Vaughan Buckley SC, prosecuting, that the authority had been investigating price-fixing in the entire motor car market, not just Citroen cars.
A group called the Citroen Dealers Association was formed by some of the dealers who met regularly. It agreed the price of new cars as well as delivery charges, Mr Fitzpatrick said.
Mr Vaughan Buckley said the association had arranged for another company to police the implementation of this agreement by using so-called "mystery shoppers". These people would call to a dealership and get information on sale prices and then report back to the association.
There were, the court heard, financial penalties if the agreement was breached.
Mr Fitzpatrick said Doran was president of the association for two years. Two dealers, who had limited immunity from prosecution, had attended meetings where Doran was present and "where prices were fixed and agreed". One was described as a "whistle-blower" and the court heard the Competition Authority had detailed minutes of the meetings in question.
Judge Michael O'Shea said he accepted Doran had done a lot that was correct and proper but the price-fixing was well-organised and monitored. He was well aware of it and directly involved, he said.
The judge imposed a three-month sentence, but suspended it on the condition of Doran entering into a good behaviour bond, and imposed a €20,000 fine on the company.
A number of Citroen dealerships have been brought before the courts in recent months. Earlier this year, a dealership in Ardee, Co Louth, was fined and a director given a suspended sentence.