Farmers market price fixing row settled

A dispute over price fixing at the Gisborne Farmers Market has been settled by the Commerce Commission.

In future prices will be set by individual stall holders rather through a market committee.

The commission began investigating in October 2009 after receiving a complaint from a member of the market's committee that it was attempting to fix the prices for produce sold at the market, by passing a rule which required members to sell their produce above the level of wholesale prices.

The rule was introduced by some committee members who wanted to prevent the complainant from selling produce at a price they thought was too low.

The dissident committee member sought advice from the Commerce Commission.

The commission said the rule was likely to breach the Commerce Act. However, the committee went ahead, passed the rule and publicised it to its members.

"The Gisborne Farmers Market Committee has agreed with the commission that this was an attempt to fix, control, or maintain the price of produce, which is illegal under the Commerce Act.

"The committee has agreed to remove the rule," commission general manager enforcement Kate Morrison said today.

Ms Morrison said any attempt by traders to fix prices was to the detriment of consumers.

"Traders are also disadvantaged because they lose the right to decide their own pricing structure."

- NZPA