Colgate, Cussons face $100 million fines after allegedly striking a deal over laundry powder

GROCERY giants Colgate and Cussons face fines of up to $100 million after allegedly striking a deal to clean up consumers over laundry powder.

Facing hefty fines ... Colgate and Cussons are in hot water with the ACCC

GROCERY giants Colgate and Cussons face fines of up to $100 million after allegedly striking a deal to clean up consumers over laundry powder.

The alleged cartel also involved Unilever but it has been given immunity for revealing it to the competition watchdog.

In Federal Court action filed in Sydney, the Australian Competition and Consumer Commission claims Colgate, Cussons and Unilever conspired to stop supplying standard concentrate in early 2009 and "simultaneously transition" Cold Power, Radiant and Omo respectively, to ultra concentrates.

The ACCC alleges the trio agreed to sell their super-strength powders for the "same price per wash as the equivalent standard concentrated products and not pass on the cost savings to consumers".

This had a "significant" effect on competition, the ACCC alleges.

The ACCC "also alleges that Woolworths played a key role in organising the simultaneous transition to ultra concentrates and the introduction of an anti-competitive pricing strategy".