RUBERY online toy retailer Trod Ltd has admitted to illegal price-fixing with one of its competitors, following an investigation by the Competition and Markets Authority (CMA).

The company admitted agreeing with GB Eye Limited that neither would undercut each other's prices for licensed sport and entertainment posters and frames sold on the Amazon website.

An investigation found that the agreement was implemented using automated repricing software.

In a settlement with the CMA, Trod Ltd agreed to accept a fine of £163,371, which includes a 20 per cent discount granted by the CMA following the Trod Ltd's admission and cooperation with its investigation.

GB Eye Limited will not receive a fine, having reported the cartel to the CMA, providing it continues to cooperate.

Trod Ltd, which traded as Buy 4 Less, Buy for Less, Buy-For-Less-Online, 247 Toys and Global Trader, sold merchandise including badges, stickers and mugs, with images of sport and entertainment stars such as Justin Bieber.

In December 2015, the CMA coordinated with the US Department of Justice to carry out a police raid of Trod Ltd's headquarters on Frankley Industrial Park in Rubery, as well as the home of one of its officers.

Stephen Blake, senior director and head of the CMA’s Cartels and Criminal Group, said: "The internet is an increasingly important way in which people buy products or services in their everyday lives.

"Online marketplaces such as Amazon allow sellers to sell their goods directly to consumers, who often benefit from more choice and lower prices as a result. Online pricing tools, such as automated repricing software, can also help sellers compete better, for the benefit of consumers. In this case, however, the parties used repricing software to implement an illegal agreement to deny consumers these benefits.

"Sellers on online platforms need to be aware that agreeing with each other to limit price competition in this way is illegal and can have serious consequences for the companies and individuals involved.

"The CMA is committed to tackling such anti-competitive behaviour, which jeopardises online markets and consumer trust in e-commerce."

The US Department of Justice's criminal investigation, which is separate from the CMA's, could carry a ten year prison sentence and $1 million fine for Trod Ltd's director Daniel Aston.