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Draft Commerce Commission Guidelines - Competitor Collaboration (including a draft chapter on the applications of the cartel laws to franchising)

Written by Darryl King, PARTNER on November 23rd, 2017.    

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The Commerce Commission issued revised draft Competitor Collaboration Guidelines in 2014 in anticipation of the "cartel" changes to the Commerce Act 1986. The Commission is currently updating the guidelines to reflect changes made to the legislation after the draft Guidelines were published. The Commission will publish the updated guidelines on the Commission's website in the future.

The Commission has also offered to provide specific guidelines for franchisors and franchisees. We have been liaising with the Commission about these on behalf of the Franchise Association of New Zealand for some time but these are also yet to be published. We are yet to receive any indication of likely timing - and with a change in staff at the Commission these guidelines may no longer be a priority.

Copies of Guidelines - Warning These Are Partially Out of Date

While now out of date in some respects, the draft Competitor Collaboration Guidelines contain a useful overview of the "cartel" changes to the Commerce Act, and a range of practical examples. As they are partially out of date, the Commission has removed the draft Guidelines from its website. 

As the draft Guidelines contain useful information, you may wish to look at the draft Guidelines to help you get a general understanding of the cartel rules in advance of the Commission publishing the replacement Guidelines. A copy of the 2014 Guidelines can be found here. Please note our warning below about the now partially out of date Guidelines.

In an earlier version of the draft Competitor Collaboration Guidelines, the Commerce Commission included a chapter (Chapter 9) specifically dealing with franchises. This was removed from the revised draft Guidelines due to the perceived concern in the franchise community that franchise systems were being unfairly singled out for attention. A copy of the version of the 2013 draft Guidelines with the chapter on franchising can be found here. Please note our warning below about the out of date Guidelines, and that this was an early version of the draft Guidelines.

Warning About the Draft Guidelines

As we say above, some of the draft Guidelines are now out of date. If you download the draft Guidelines, you should use them with caution and only to help you with a general understanding of the laws. And you should, of course, obtain specific legal advice about the effect of the changes as introduced into law. 

For More Information or Help on How to Comply

For more information on the "cartel" changes to the Commerce Act and what you need to do, please see our articles here. If you have any questions on how the changes may affect your business or if you would like us to assist you to comply, please get in touch with one of the key contacts listed. 


Disclaimer: 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 2017






 

Key Contacts

Darryl King Publications
Darryl King, PARTNER

David Alizade 167
David Alizade, PARTNER

Claire FINAL
Claire Godber, SENIOR ASSOCIATE
 

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