Former Trade Me bullion trader warned on price fixing
An attempt by online dealer Silver Seller Ltd to fix prices with a competitor has elicited a warning from the Commerce Commission and a ban from Trade Me.
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BUSINESSDESK: An attempt by online dealer Silver Seller Ltd to fix prices with a competitor has elicited a warning from the Commerce Commission and a ban from Trade Me.
In June and July 2011, Silver Seller and director Jacob Martin allegedly attempted to form an agreement with a competitor to fix prices for bullion sold on Trade Me.
The competitor alerted Trade Me and the commission. Trade Me subsequently banned Silver Seller from trading on its website.
The commission’s investigation uncovered emails from Mr Martin to his competitor suggesting they agree a fixed price for gold and silver bullion sold online.
The competitor did not respond to the approach.
The commission has decided to warn rather than prosecute Mr Martin but says it does not rule out stronger enforcement action later.
Price fixing, or even attempting to reach an agreement to fix prices, is illegal under the Commerce Act.
"Price fixing harms competition, downstream businesses and consumers. An attempt to fix prices in any industry or market is viewed seriously by the commission," manager, competition, Ritchie Hutton said.
Pam Graham
Thu, 28 Jun 2012
Thu, 28 Jun 2012
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Former Trade Me bullion trader warned on price fixing
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