You work for a trade association and are chairing its bimonthly meeting. Your legal adviser has been present and commented on some parts of the agenda that required expert advice. However, they had to leave before the end of the meeting. There are no problems until the meeting is almost over and the final agenda item, ‘Other business’, is reached.
Some members are angry that other members have been undercutting them, and believe that some of the prices quoted were uneconomic. Other members strongly agree. The debate moves towards some form of pricing formula, and someone suggests that all members should submit their pricing guidelines so that some measure of price variations can be assessed.
Warning! The meeting is approaching some risky ground.
A member proposes that a survey of prices be held and that the association then put some recommended pricing guidelines to the next meeting. There is strong agreement but some members state that their prices are their business. Another member then suggests that it would be better to simply agree on minimum prices, making a survey unnecessary.
Warning! This would be price fixing and illegal. You should use your position as chair to terminate the discussion and refer the issue to the legal adviser. Also consider obtaining guidance from the ACCC.
Some members say the matter is too urgent for such a delay. They move that the association issue a questionnaire to members with a view to coming up with an acceptable minimum price schedule, and that acceptance of minimum prices be a condition of membership. The motion is passed by at least 80 per cent of those present.
The motion would oblige the association to facilitate price fixing. You should state that you need legal advice before accepting the motion, and put trade practices compliance on the agenda for the next meeting. Contact your legal adviser immediately! If members do not accept legal advice, you should contact the ACCC.
