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Commerce Commission To Take Foodstuffs South Island To Court Alleging Far-Reaching Anti-Competitive Conduct
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Business.Scoop
Press Release – Commerce CommissionThe conduct we allege occurred deprives Kiwis of the best possible prices when shopping at their local supermarket and limits competition, Commerce Commission chair Dr John Small says.
The Commerce Commission will file civil proceedings against Foodstuffs South Island Ltd (FSSI), alleging it implemented and enforced a widespread restriction on independently owned PAK’nSAVE stores discounting selected products.
The Commerce Commission will argue that the conduct constitutes resale price maintenance, which is illegal and prohibited by section 37 of the Commerce Act.
Resale Price MaintenanceResale price maintenance is illegal per se and prohibited by section 37 of the Commerce Act.
Resale price maintenance occurs when a supplier of goods enforces, or tries to enforce, a minimum price at which the reseller must on-sell those goods.