Fair Trade Law Q&A - Concerted ActionsFair Trade Law Q&A - Concerted Actions| Is it in compliance with the provisions set for the in the Fair Trade Act when a trade association establishes a prices or fee schedules for referential purposes? |
Article 14 of the Fair Trade Act defines "concerted action" as "competing enterprises at the same production and/or marketing stage, by means of contract, agreement or any other form of mutual understanding, jointly determine the price, technology, products, facilities, trading counterparts, or trading territory with respect to goods or services, or any other behavior that restricts each other's business activities, resulting in an impact on the market function with respect to production, trade in goods or supply and demand of services". Accordingly, where a trade association adopts resolutions establishing reference prices or fee schedules, and such conduct has impaired market functions, such conduct may constitute a violation of Article 15 of the Fair Trade Act prohibiting concerted actions.>Relevant Provisions: Articles 2, 14, and 15 of the Fair Trade Act