Former TradeMe 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 TradeMe.

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 TradeMe and the commission. TradeMe subsequently banned Silver Seller from trading on its website.

The commission’s investigation uncovered emails from 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 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," said Commerce Commission manager, competition, Ritchie Hutton.

BusinessDesk.co.nz

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