The Commerce Commission has today announced its priorities for the year ahead. It has also foreshadowed that more action against cartel conduct like price fixing is coming (with real estate agents again in trouble), as well as the first cases for unconscionable conduct under the Fair Trading Act.
The Commission's priorities put businesses on notice of the particular areas under the spotlight of the Commission. They are not the only areas in which the Commission will take action – but rather guide the Commission's prioritisation of cases and alert businesses that the Commission is highly likely to act if it sees unlawful conduct in those areas.
The new priorities largely repeat the priorities that the Commission has been focusing on in the previous year – including:
- Cartel conduct – including cartel conduct that impacts the competitive process for the procurement of public services and infrastructure contracts
- Online sales conduct, like fake reviews, misleading scarcity claims and sales tactics (eg 'offer ends in two hours' and other examples set out on the Commission's website: Online sales practices), drip pricing and subscription traps
- The grocery and telecommunications sectors
- Motor vehicle sales and finance
- Unconscionable conduct (with the Commission announcing that the first cases against unconscionable conduct, involving alleged hard sales tactics against vulnerable customers, will soon be announced).
While illegal non-competes have dropped off the specific priorities, the Commission announced that it will file a case in this area, and that enforcing non-competes will now fall within its "enduring priorities".
Those enduring priorities continue to include cartels, anti-competitive conduct, actions that supports its market and economic regulation functions, product safety, and vulnerable consumers. While not listed in the priorities, the Commission said that other areas of particular focus include environmental claims and greenwashing, and unfair contract terms.
The Chair of the Commission also signalled that the Commission is willing to "chance its arm" more than it previously has been, which is consistent with the Commission's announcement last year to over-commit its litigation fund.
If you want to know more about the Commission's priorities and how they might be relevant to your business, or help in refreshing your compliance programmes, contact a member of our competition team.
