New price list guidelines

Press, 13 June 1986, Page 5

New price list guidelines

By

SIMON LOUISSON

in Wellington

New guidelines for recommended price lists have been issued by the Commerce Commission to fit in witn the Commerce Act, 1986.

The recommendations were made in response to a request by the Chemist’s Guild which wanted permission to circulate a list to its members. The chairman, Mr John College, said that recom-

mended prices were acceptable in certain circumstances. However, under the new act the issuing of such a list was limited to a trade association having more than 50 members, otherwise such a list was deemed to be an illegal price-fixing arrangement. Even where there were 50 members the guide must not press members not to discount, offer inducements for dis-

counting, or threaten supplies of members who discount. Also, the trade association could not announce a price rise for its members or make agreements with members that the price would rise. Mr Collinge said the golden rule was that. individual members could charge what the trader liked, free of coercion, inducement or any other pressure. If the recommended t

price resulted in a lessening of competition, it was illegal. Aspects which determined this included the market share the association held, the number of association members compared with others in the market, the degree to which members accepted recommended prices, and the ease of entry to the market of non-association members. te - 1