Collusion is a secret agreement between two or more people to deceive or defraud someone else, an organization, or the government. It can take many forms, some of which are illegal. To prove collusion, it must be shown that the parties involved knowingly and with intent to deceive met. Collusion can occur in various situations, including divorce proceedings, insurance fraud, and poker games. It can be heavily punished if perpetrators are found. Companies are closely monitored for signs of secret deals, and individuals should decline suspicious requests to avoid being accused of collusion.
Collusion is a form of secret agreement between two or more people. These individuals typically meet in secret, striking a deal designed to deceive or defraud someone else, an organization, or the government. Collusion can take a number of forms, many of which are illegal, and individuals may have found themselves victims of a lesser form at some point, such as when a group of friends privately agree on which movie they want to watch before contacting a other friend.
For the allegation of collusion to be proven, it must be proven that the parties involved knowingly and with intent to deceive met. If, for example, two companies meet and agree on a price fixing system, this would fit the definition. If two companies set the same prices for their products, this would not be deceptive, although many people would see this as highly suspicious and could be considered a case of tacit collusion.
Another form could occur when someone attempts to commit insurance fraud by damaging a home or car with someone else’s assistance. People have also been known to collusion during divorce proceedings, with one partner pretending to have committed adultery in order for the divorce to go through. To address this problem, many regions have established no-fault divorce laws, which allow people to divorce by mutual consent.
Like other fraudulent activities, collusion can be heavily punished if the perpetrators can be found. In the financial world there is a violation of the rules of the free market, creating a situation where companies defraud their investors and the public for profit, and as such companies are closely monitored for signs of secret deals. Sometimes, a situation called “tacit collusion” occurs, in which companies collude without verbal consent, as might happen when companies set their prices on a market leader, rather than setting them themselves.
Some games also involve collusion, notably poker. As a general rule, it’s hard to do it by accident. If someone is in a private meeting with someone or an organization and is asked to cooperate with them in a way that seems suspicious or potentially fraudulent, they may want to decline, to avoid being accused of collusion.
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