Commerce Commission issues warning to Blenheim bricklayers over suspected cartel conduct
The Commerce Commission has issued a warning to several bricklayers in the Blenheim area following an investigation into suspected cartel conduct.
G J Marfell Ltd, Mike Vis Bricklaying Ltd and bricklayers Benjamin Robertson and Andrew Dwyer were issued warnings for conduct that involved the use of courtesy calls, including in the form of text message exchanges, to discuss quotes for projects.
Commerce Commission chairman Dr John Small said such discussions, particularly when specific pricing is disclosed, can lead to cover pricing, which is a form of bid-rigging.
He said a warning was appropriate despite the serious nature of the conduct as possible harm and financial detriment were limited.
“While these are warnings, we want to highlight this case as it serves as an important reminder to all tradespeople that they must understand and comply with their obligations under the law,” Small said.
“These bricklayers’ actions impacted several building projects in the Blenheim area.”
The commission opened an investigation after a tip-off identifying several series of problematic text messages between individual bricklayers from 2020 to 2021.
These text exchanges occurred when one bricklayer was approached by a customer who was usually serviced by another bricklayer.
The messages showed multiple instances of bricklayers discussing pricing.
In some of these cases, bid rigging occurred as one of the bricklayers then submitted an anti-competitive higher quote, so the other bricklayer could retain their existing customer.
The purpose of the price-fixing involved was to ensure a particular bricklayer would be awarded the work, constituting market allocation.
“The bricklayers’ actions likely deceived their customers, who in good faith sought multiple, competitive quotes,” Small said.
“It is crucial that sole traders and businesses take steps to ensure their commercial dealings with competitors are lawful.”
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