Our lawyers keep up with the latest trends and issues in New Zealand law and business, and regularly publish articles and reports on current topics.

Email me when new articles are published

Franchisor Update - Cartels Bill

Written by Darryl King, PARTNER on August 30th, 2016.    

Changes expected to Cartels Bill 

Earlier this year we sent an update on the Cartel Amendments to the Commerce Act in our article: Overview for Franchisors.  Hon. Paul Goldsmith, Minister for Commerce and Consumer Affairs has now confirmed that the Cartels Bill will be amended to clarify how the restraint of trade provisions apply to franchise agreements. This followed an application to the Minister by the Franchise Association of New Zealand (FANZ) Legislation Subcommittee. 

Darryl King is a member of the FANZ Legislation Subcommittee and drafted FANZ's submission to the Ministry.  

The full FANZ announcement is below or you can view it on the FANZ website.  

Announcement by FANZ about the Commerce (Cartels and Other Matters) Amendment Bill (the Cartels Bill)

Earlier in the year, FANZ wrote to the Ministry of Business, Innovation and Employment (MBIE) to draw the Ministry’s attention to the fact that otherwise legitimate restraints of trade relating to a collaborative activity (ie, a franchise) will be prohibited after the end of that collaborative activity (ie, after the termination of the franchise agreement). FANZ’s Legislation Subcommittee was of the view that these proposed provisions would materially and adversely affect many franchised businesses.

FANZ is delighted to announce that the Commerce and Consumer Affairs Minister,
Mr Paul Goldsmith, has agreed to amend the Cartels Bill to make clear how the Cartels Bill will relate to restraint of trade provisions in franchising agreements. 

FANZ wishes to express its sincere thanks to MBIE, the Minister and Senior Policy staff for dealing with this matter so promptly and effectively.

Brad Jacobs (Chairman of FANZ)
Robyn Pickerill (CEO of FANZ)

The information contained in this publication is of a general nature and is not intended as legal advice.  It is important that you seek legal advice that is specific to your circumstances.
All rights reserved © Jackson Russell 2016
Key Contacts
Darryl King 167
Darryl King, PARTNER

Level 13, 41 Shortland Street, Auckland 1010, New Zealand

PO Box 3451, Auckland 1140, New Zealand

+64 9 303 3849

Linkedin Circle-26