Did you know that as a member of a trade association you could be involved in a price fixing agreement?

 

Five trade associations have already been involved in breaches of Malaysia's competition law. All of the cases involved price fixing, most of the businesses involved were SMEs and many of the businesses had to pay a fine to the Malaysia Competition Commission.

 

Price fixing occurs when competitors agree the price that they will each charge for their goods or services. An agreement to increase or decrease price (for example by 10%) is also price fixing.  So trade associations cannot recommend a price for their members to charge and members attending a trade association meeting cannot agree to increase or decrease the price of their goods or services.

 

All trade associations need to ensure they understand the competition law that is applicable to them.  Trade associations have a vital role to play to help their members comply with competition law.  If you or your trade association would like further information, please contact one of the CLEC team.