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Commerce Act 1986

Enforcement, remedies, and appeals - Restrictive trade practices

82B: Offence relating to cartel prohibition

You could also call this:

"Breaking rules about working together to fix prices or control markets is against the law."

Illustration for Commerce Act 1986

If you enter into a contract or arrangement that contains a cartel provision, you commit an offence. This is if you do it in contravention of section 30(1)(a) and you intend to engage in price fixing, restricting output, or market allocating. You can also commit an offence if you give or require a covenant that contains a cartel provision in contravention of section 30(1)(ab) or give effect to a cartel provision in contravention of section 30(1)(b) with the same intentions.

If you are an individual and you commit this offence, you can be imprisoned for up to 7 years or fined up to $500,000, or both. If you are not an individual, you can be fined up to $10 million or three times the value of any commercial gain resulting from the contravention, or 10% of your turnover.

You should check the exceptions set out in Part 2, which relate to conduct that would otherwise contravene section 30(1)(a), (ab), or (b).

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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=LMS485452.

Topics:
Business > Fair tradingCrime and justice > Criminal law
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82A: Exemplary damages for contravention of Part 2, or

"Paying extra for breaking the rules in the Commerce Act"

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82C: Defence relating to exceptions to cartel prohibition, or

"You have a defence against cartel charges if you reasonably thought an exception applied"

Part 6Enforcement, remedies, and appeals
Restrictive trade practices

82BOffence relating to cartel prohibition

  1. A person commits an offence if—

  2. the person,—
    1. in contravention of section 30(1)(a), enters into a contract or arrangement, or arrives at an understanding, that contains a cartel provision; and
      1. intends, at that time, to engage in price fixing, restricting output, or market allocating; or
      2. the person,—
        1. in contravention of section 30(1)(ab), gives, or requires the giving of, a covenant that contains a cartel provision; and
          1. intends, at the time the person gives or requires the giving of the covenant, to engage in price fixing, restricting output, or market allocating; or
          2. the person,—
            1. in contravention of section 30(1)(b), gives effect to a cartel provision; and
              1. intends, at the time the cartel provision is given effect to, to engage in price fixing, restricting output, or market allocating.

              2. An individual who commits an offence against this section is liable on conviction to imprisonment for a term not exceeding 7 years or a fine not exceeding $500,000, or both.

              3. A person other than an individual that commits an offence against this section is liable on conviction to a fine not exceeding the greater of the following:

              4. $10 million:
                1. either,—
                  1. if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the contravention; or
                    1. if the commercial gain cannot be readily ascertained, 10% of the turnover of the person and all its interconnected bodies corporate (if any) in each accounting period in which the contravention occurred.

                    2. See the exceptions set out in Part 2, which relate to conduct that would otherwise contravene section 30(1)(a), (ab), or (b).

                    Notes
                    • Section 82B: inserted, on , by section 4 of the Commerce (Criminalisation of Cartels) Amendment Act 2019 (2019 No 9).
                    • Section 82B(1)(ab): inserted, on , by section 37(1) of the Commerce Amendment Act 2022 (2022 No 11).
                    • Section 82B(4): amended, on , by section 37(2) of the Commerce Amendment Act 2022 (2022 No 11).