Commerce Act 1986

Restrictive trade practices - Cartel provisions

33: Exception for joint buying and promotion agreements

You could also call this:

"Buying together with others is okay, and you can agree on a price without breaking the law."

Illustration for Commerce Act 1986

If you have a contract or agreement with others to buy things together, it is not considered price fixing if you decide on a price for those things. You can also jointly advertise the price of the things you bought together. Additionally, you can negotiate a price together and then each buy the things at that price. It is also allowed for one person to buy the things and then sell them to the others in the agreement. You can find more information about this in the Commerce (Cartels and Other Matters) Amendment Act 2017. This law applies to situations where you are buying and selling things with others.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM88274.


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32: Exception for vertical supply contracts, or

"Some supply contracts are exempt from a law that stops companies from fixing prices to reduce competition."


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34: Certain provisions of covenants with respect to prices deemed to substantially lessen competition, or

"Rules to stop businesses cheating on prices to unfairly beat others"

Part 2Restrictive trade practices
Cartel provisions

33Exception for joint buying and promotion agreements

  1. A provision in a contract, arrangement, or understanding does not have the purpose, effect, or likely effect of price fixing if the provision—

  2. relates to the price for goods or services to be collectively acquired, whether directly or indirectly, by some or all of the parties to the contract, arrangement, or understanding; or
    1. provides for joint advertising of the price for the resupply of goods or services acquired in accordance with paragraph (a); or
      1. provides for a collective negotiation of the price for goods or services followed by individual purchasing at the collectively negotiated price; or
        1. provides for an intermediary to take title to goods and resell or resupply them to another party to the contract, arrangement, or understanding.
          Notes
          • Section 33: replaced, on , by section 8 of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).