Fair Trade Law Q&A - Concerted ActionsFair Trade Law Q&A - Concerted Actions| Do uniform pricing standards established by a trade association solely for reference purposes still constitute "concerted actions"? |
The Fair Trade Act regulates concerted actions for the purpose of preventing competing enterprises from mutually restricting one another's business activities. Under Article 2 of the Act, the term "enterprise" includes trade associations. Accordingly, where a trade association establishes uniform pricing standards that are stated to be "for reference only", even if such standards are non-binding or framed merely as recommendations, they may still impede enterprises from independently adjusting their individual costs and pricing ranges. Such arrangements may nevertheless retain the essential nature of concerted actions.Relevant Provisions: Articles 2 and 14 of the Fair Trade Act