You work as the pricing specialist for a large business which has an industry association. Your business usually sells on a wholesale basis. You have good visibility of the price of your products at the retail level compared with your competitors. However, when the industry association publishes a newsletter, you find that your wholesale price is 5% below the average wholesale price for similar items. The industry association does not reveal the wholesale prices charged by specific competitors, only the average (expressed as each of mean and median). The CEO has also seen the newsletter and asks why you have failed to set the “right” wholesale price and when will the price increase occur. Your General Counsel has also seen the newsletter and has suggested that you do not immediately change the price. Why might the General Counsel say this?

Question

Accepted Answer

The pricing information comes from a common source. If each of the industry association sells at the same price, this creates the risk of engaging in coordinated conduct, which is prohibited under the Competition and Consumer Act 2010 (Cth)

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Answer

The pricing information comes from a common source. If each of the industry association sells at the same price, this creates the risk of engaging in coordinated conduct, which is prohibited under the Competition and Consumer Act 2010 (Cth)

✅

Answer

Your business has not yet negotiated a contract, arrangement, or understanding and this is required in order to minimise the risk of cartel conduct under the  Competition and Consumer Act 2010  (Cth)

Answer

You do not know if the industry association has obtained immunity under the Competition and Consumer Act 2010 (Cth). You need to get a “marker” from the Australian Competition and Consumer Commission before using the data

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Crowdly

You work as the pricing specialist for a large business which has an industry as...

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