Rover 'pays' 1m pounds compensation

IN WHAT is thought to be the first compensation deal of its kind in Europe, Rover is 'paying' pounds 1m to the Consumers' Association for breaches of competition law, writes David Nicholson-Lord.

The money will be spent by the association on new information services for car- buyers. The deal follows the admission by the car group that it had been breaching EU competition law for several years over its policy of limiting discounts available from dealers.

The commission decided it would be impossible to trace all the customers affected, but said the money must be spent for the benefit of all British car-buyers.

The Rover group has abandoned the practice and has said that it will compensate dealers as well as consumers.