VocabuLaw

Collusion

What is it and what does it mean?

Description of the legal term Collusion:

Collusion refers to a secret or illegal agreement or cooperation between parties, often with the intent to deceive others or to achieve an unlawful or fraudulent purpose. It is commonly associated with contexts where parties are expected to be in competition or opposition but secretly cooperate for their mutual benefit to the detriment of others, such as third parties or the public interest.

Collusion can occur in a variety of legal contexts, including but not limited to antitrust law, where companies conspire to fix prices or rig bids, and family law, where parties may collude to deceive the court in order to obtain favourable divorce settlements or child custody arrangements.

Legal context in which the term Collusion may be used:

Business collusion (price-fixing)
Several companies in an industry may secretly agree to fix the prices of their products in order to keep them artificially high. This kind of collusion is illegal under UK competition law because it undermines the principles of a free market and harms consumers by depriving them of fair prices. If discovered, such collusion can lead to regulatory action, fines and damages. The Competition and Markets Authority (CMA) in the UK would investigate and take action against the companies involved for breaching competition law.

Collusion in divorce proceedings
In a divorce case, a husband and wife might collude to hide assets in order to avoid sharing them in the divorce settlement. They may agree to understate their assets or to temporarily transfer assets to friends or family members with the intention of recovering them after the divorce is finalised. Such collusion, if discovered, can lead to legal consequences, including revision of the divorce settlement and possible criminal penalties for deceiving the court.

This website is for informational purposes only and may contain inaccuracies. It should not be used as a substitute for professional legal advice.