15 May 2025 – Wellington
The Commerce Commission has issued a warning to New Zealand trade organisations following concerns about potentially anti-competitive conduct by the NZ Trade Group (NZTG), a national network of electricians.
In a compliance advice letter, the Commission outlined two key issues: a non-solicitation clause in NZTG’s membership terms, and Facebook posts that appeared to include price-matching discussions. The Commission found both matters raised concerns under section 30 of the Commerce Act, which prohibits cartel conduct.
“There were two principal areas of concern,” said Vanessa Horne, General Manager Competition, Fair Trading and Credit at the Commission. “The first related to the group’s terms and conditions, which explicitly prohibited members from actively soliciting other members’ customers, employees, and contractors.”
The second issue involved discussions in NZTG’s private Facebook group, where members appeared to agree on pricing. “Several posts included discussions about rates, with members in some cases appearing to agree to price-match,” Horne said.
While the Commission chose not to take enforcement action, it noted that the behaviour had the potential to harm competition. NZTG has since amended its membership terms and added a permanent warning banner in its Facebook group advising against anti-competitive conduct.
Ms Horne urged other membership and trade organisations to take note. “This case is a timely reminder that trade associations, professional bodies and their members must ensure their conduct does not breach the Commerce Act. The penalties can be serious—including imprisonment.”
A copy of the compliance advice letter can be found in the Commission’s online case register.
