NZ Trade Group (NZTG) describes itself as the leading network of electricians. Photo: 123RF
A group that describes itself as the leading network of electricians has been put on notice about activity that the Commerce Commission says could be anti-competitive conduct.
The commission has sent a compliance advice letter to NZ Trade Group (NZTG).
Commerce Commission general manager of fair trading and credit said there were two areas of concern about the group.
"The first related to the group's terms and conditions which contained a non-solicitation clause explicitly prohibiting members from actively soliciting other members' customers, employees and contractors.
"The second related to the NZTG's private Facebook group. Several posts included discussions about rates, with members in some cases appearing to agree to price-match.
"In both cases, the conduct raised issues under section 30 of the Act which prohibits any person entering into a contract or arrangement, or arriving at an understanding, that contains a cartel provision."
The group had changed the terms and conditions of its membership and has added a banner to its Facebook group warning against discussion and conduct that could be anti-competitive.
Horne said other membership organisations should take it as an opportunity to review their practices.
"Trade associations, professional bodies and their members should be aware they could be held liable under the Commerce Act if conduct is shown to be anti-competitive. Penalties for breaching the Commerce Act can be severe, including potential imprisonment."
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