Can I set minimum or maximum prices for my distributors?

In Short

• Setting a minimum resale price for your distributors is illegal under New Zealand s Commerce Act 1986.
• You are permitted to set maximum resale prices, which can help keep consumer prices competitive.
• Providing RRPs is acceptable, but they must remain non-binding suggestions without any enforcement.

Tips for Businesses

Ensure your pricing policies comply with New Zealand law by avoiding the enforcement of minimum resale prices. Clearly communicate any RRPs as optional to your distributors. Regularly review your distribution agreements and practices to maintain compliance and foster positive relationships with your distributors.

Manufacturers and suppliers often consider whether they can control the prices at which their distributors sell products. This practice, known as resale price maintenance (RPM), is highly regulated in New Zealand. This article explores the legality of setting minimum or maximum prices for distributors and the