Confusion over code clarified

By ASHLEY CAMPBELL

The Commerce Commission has clarified its role in authorising the Recruitment Consulting and Services Association's new code of conduct.

Last month the Herald reported that confusion over New Zealand regulations was stalling the introduction of the code in this country.

The Australian Competition and Consumer Commission approved the code in October. Association chief executive Julie Mills said it was lodging the code with New Zealand's Commerce Commission to get authorisation that "if we take action against companies, we will not be challenged on trade practice or fair trading matters".

At the time, a Commerce Commission spokeswoman said it did not authorise codes of conduct. But the association has clarified that it will seek authorisation only for the parts of the code that could be seen as "'exclusionary arrangements" under the Commerce Act.

Jan Compton, manager of the commission's market behaviour group, has confirmed that the commission can authorise "behaviour that would normally breach the act if it's considered that the benefits would outweigh the detriment".

In one of its publications, the commission says: "The granting of a restrictive trade practice [market behaviour] authorisation protects the applicant from court action under the Commerce Act by the commission and private individuals."

It took about six months to grant authorisations, Compton said, but the commission had not yet received the association's application.