The drop-in session at Te Pou Ō Mata-Au focused on raising awareness of cartel behaviour — anti-competitive collusion between supposed competitors.
From large-scale price-fixing to contractors taking turns winning bids or individuals dividing instead of competing for an area’s customers, cartel behaviour was commonplace across the country and the commission had never been busier, Mr Chamberlain said.
"If, when you are thinking about business decisions, your thoughts are dominated by discussions you’ve had with your competitors, you need to ask yourself some questions," he told attendees.
Penalties for cartel activity can be severe, with individuals facing up to seven years in prison and successful enforcement can deliver immediate results.
In one case, stopping a cartel led to market prices dropping by 30%.
One attendee took the opportunity to question attitudes towards competition among LPG suppliers, while another felt there was an element of "corruption" within local construction activity.
The commission’s website had plenty of information for curious businesspeople, including short videos with examples of potential cartel crimes.
The commission was concerned with competitive, fair trading as well as product safety and the Wellington based team have been touring the South Island with stops in Queenstown, Invercargill, Dunedin and Clutha.
The presentation offered local business owners the chance to learn more about the commission’s role in advocacy, investigation and prosecution.
The session, facilitated by Clutha Development and Business South, also highlighted that not all collaboration is illegal.
Legitimate consortiums with transparent arrangements made clear to both producers and customers were legal.
The distinction between healthy co-operation and unlawful collusion was a key theme of the presentation.
The commission investigates complaints across a wide range of sectors. Some cases are referred to regulators and the Serious Fraud Office.
The tour coincided with government reforms to the Commerce Act to strengthen the commission’s ability to curb anti-competitive practices such as predatory pricing and "killer acquisitions".
The commission emphasised its central mission of promoting competition for the long-term benefit of New Zealanders.
Sessions like the Balclutha visit were designed to make it easier for businesses to understand their obligations and know what to do if they suspected cartel behaviour.
