A consumer guide to cartel conduct was launched by Australian Competition and Consumer Commission Chairman, Mr Graeme Samuel, today.
"Cartels are a scourge on our economy", he said. "They can cause prices to be inflated for many goods and services that people buy everyday. Even when the victim of a cartel is a government department or another business, the higher costs will be passed on to taxpayers and consumers".
The publication provides information about the four different types of cartel conduct:
price fixing
market sharing
bid rigging, and
output controls.
"No matter what form the cartel conduct takes, they are all essentially conspiracies to rip-off consumers", he said.
"By their very nature, cartels are secretive agreements and they can be difficult to detect. The ACCC receives tip-offs from firms wishing to take advantage of the ACCC's Immunity Policy, but consumers can also play a role in the fight against cartels".
Cartels affect all consumers – whether it is through higher prices for petrol at the pump or cartel members rigging bids paid for with taxpayers' money.
Mr Samuel told the congress that consumers should watch for:
prices, discounts or rebates at a number of competitors all suddenly changing to be similar or identical
a sudden, unexplained rise in prices across a number of companies in an area, or
suppliers charging different amounts for a product in different geographic areas.
Mr Samuel noted that these signs don't necessarily mean that a cartel is in operation. They can reflect legitimate commercial practices by competing businesses.
"Highly visible prices displayed by businesses allow competitors to quickly adjust their prices to match price movements. There may also be a single dominant firm which is a price leader and whose pricing practices other competing firms chose to follow. In each case, it can be difficult to separate whether the pricing behaviour is a result of an individual decision to shift prices or the result of a collusive agreement.
"However, the ACCC urges consumers not to ignore the warning signs and to let the ACCC know if they suspect a cartel so we can take a closer look".
Cartels – a guide for consumers on cartel conduct is available from the ACCC website, and by contacting the ACCC Infocentre on 1300 302 502.
