The New Zealand Commerce Commission has reminded trade organizations of their obligations under the Commerce Act after issuing a compliance advice letter to the NZ Trade Group (NZTG). This letter was prompted by concerns over conduct that could harm competition.

Vanessa Horne, the General Manager of Competition, Fair Trading and Credit, stated that the Commission investigated allegations of anti-competitive behavior by NZTG, which is recognized as the leading network of electricians in the country. The investigation highlighted two main issues: the group's terms and conditions and discussions within a private Facebook group.

The first concern involved a non-solicitation clause in NZTG's membership terms, which prohibited members from soliciting each other's customers, employees, and contractors. The second issue arose from posts in NZTG's private Facebook group, where members discussed rates and appeared to agree on price-matching, raising red flags under section 30 of the Commerce Act, which prohibits cartel provisions.

In response to these concerns, NZTG has amended its membership terms and added a permanent warning banner on its Facebook group to discourage anti-competitive discussions. Horne emphasized that while NZTG's prompt actions concluded the investigation, other membership organizations should take this as a cue to review their own practices to avoid potential liabilities under the Commerce Act.

Trade associations and their members must be aware that they could face severe penalties, including imprisonment, for breaching the Commerce Act. The compliance advice letter is available on the Commission's case register for further reference.