A draft Bill providing for jail time for cartel conduct (price
fixing, bid rigging, and / or agreements to share markets or limit
output) was released by the Government last week. Under the draft
Bill, individuals found guilty of the proposed criminal offence for
cartel conduct will be liable for up to 7 years' imprisonment.
The penalty for companies found guilty of the proposed criminal
offence for cartel conduct remains, at one level, the same as the
current maximum civil pecuniary penalty under the Commerce Act
1986 (the Act) - $10 million or 3 times the
commercial gain or 10% of turnover - although companies would also
have the additional stigma of a criminal conviction.
In setting the maximum period of imprisonment at 7 years, the
drafters of the Bill have put cartel conduct on a par with the
offences of:
