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Commerce Act 1986

Restrictive trade practices - Resale price maintenance

39: Recommended prices

You could also call this:

"What you need to know about prices suggested by suppliers when selling goods"

Illustration for Commerce Act 1986

When you sell goods, you need to know about recommended prices. If someone who supplies goods to you says what price they think you should sell them for, it's not against the law if they say it's just a recommended price. You will know it's a recommended price if they write "recommended price" on the goods or on something with the goods.

If the supplier tells you in writing what price they think you should sell the goods for, they must also say that you don't have to sell at that price. They must make it clear that it's just a suggestion and you can choose your own price. This writing must include a statement that says the price is only a recommendation and you are not obliged to follow it, as mentioned in section 37(3)(b).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM88401.

Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Fair tradingBusiness > Fair trading
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38: Resale price maintenance by others prohibited, or

"You can't control the price others sell things for"

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"Not supplying goods fairly to someone who asks for them"

Part 2Restrictive trade practices
Resale price maintenance

39Recommended prices

  1. For the purposes of section 37(3)(b), a supplier of any goods is not to be taken as inducing, or attempting to induce, another person not to sell those goods at a price less than a price specified by the supplier merely because—

  2. a statement of a price is applied or used in relation to the goods or is applied to a covering, label, reel, or thing if the statement is preceded by the words “recommended price”; or
    1. the supplier has given notification in writing to the other person (not being a notification in the form of a statement applied to the goods or to any covering, label, reel, or thing as mentioned in paragraph (a)) of the price that the supplier recommends as appropriate for the sale of those goods, if the notification, and each writing that refers, whether expressly or by implication, to the notification, includes a statement to the effect that the price is a recommended price only and there is no obligation to comply with the recommendation.