Generally industry associations promote high ethical standards and compliance with relevant laws. But while associations aim to progress members’ interests, there is a risk that meetings that bring competitors together could be used directly or indirectly to promote anti-competitive behaviour.
Take full minutes of any meetings the association facilitates in case questions are asked at a later date.
Make clear to members that discussions held before and after meetings may pose a risk to the members and the association.
Membership and discipline
Ensure your association rules and disciplinary policies are transparent and do not:
exclude any members in a way that restricts and reduces competition in the industry
relate to enforcing pricing policies within the industry sector.
Restricting entry
Associations involved in some form of regulation that restricts membership such as monitoring experience or education qualifications, risk unreasonably creating barriers to entry that restrict competition in the market.
Pricing policies
When dealing with subjects like pricing, territories, market shares or industry outputs, there is a risk that associations may end up facilitating arrangements that could breach the Competition and Consumer Act, regardless of their intentions.
Associations should make it clear that they will not seek to discipline members for their pricing policies.
Price recommendations
When reporting or commenting on industry prices, associations should clearly state that it is for information only and that members may set their prices as they see fit.
Any association dealing with pricing issues may be at risk if their communications relating to price has the direct or indirect purpose or effect of fixing, controlling and/or maintaining prices between competitors.
