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Commerce Act 1986

Restrictive trade practices - Cartel provisions

30: Contracts, arrangements, understandings, or covenants containing cartel provisions prohibited

You could also call this:

"No cheating: don't make deals that fix prices or limit competition"

Illustration for Commerce Act 1986

You cannot enter into a contract or arrangement that contains a cartel provision. You also cannot give or require a covenant that contains a cartel provision. You must not give effect to a cartel provision.

If you break this rule, you can be liable to a pecuniary penalty, as stated in section 80, or you can be criminally liable, as stated in section 82B. You should look at these sections to understand what might happen. These sections explain the penalties you might face.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM88271.

Topics:
Business > Fair tradingMoney and consumer rights > Consumer protection
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29: Contracts, arrangements, or understandings containing exclusionary provisions prohibited, or

"No unfair contracts that stop others competing"

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30A: Meaning of cartel provision and related terms, or

"What is a cartel provision and how it affects businesses in New Zealand"

Part 2Restrictive trade practices
Cartel provisions

30Contracts, arrangements, understandings, or covenants containing cartel provisions prohibited

  1. No person may—

  2. enter into a contract or arrangement, or arrive at an understanding, that contains a cartel provision; or
    1. give, or require the giving of, a covenant that contains a cartel provision; or
      1. give effect to a cartel provision.

        1. See section 80 for liability to a pecuniary penalty, and section 82B for criminal liability, for contravention of this section.

        Notes
        • Section 30: replaced, on , by section 8 of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).
        • Section 30 heading: replaced, on , by section 12(1) of the Commerce Amendment Act 2022 (2022 No 11).
        • Section 30(1)(ab): inserted, on , by section 12(2) of the Commerce Amendment Act 2022 (2022 No 11).
        • Section 30(2): inserted, on , by section 5 of the Commerce (Criminalisation of Cartels) Amendment Act 2019 (2019 No 9).