Commission Files Proceedings Against Industrial Cleaning Company And Director, Alleging Cartel Conduct

The Commerce Commission has filed proceedings under the Commerce Act against industrial cleaning company Canterbury Industrial Scrubbing Limited (CI Scrubbing) and its director, Daniel Jamieson, alleging that it engaged in cartel conduct with a competitor to allocate customers.

The Commission and the defendants have entered into a settlement to resolve the proceedings. A penalty hearing in the Christchurch High Court has been scheduled for 10 June 2024.

As the matter is before the court, the Commission will not be providing further details at this time.

Background

A cartel is where two or more businesses agree not to compete with each other by price fixing, allocating markets or customers, or restricting the output or acquisition of goods and services.

Cartel conduct harms consumers by preventing businesses from competing to provide better quality services at better prices, and it harms other businesses which are trying to compete fairly. It is important that businesses and their directors are aware of the seriousness of this kind of conduct, and ensure they understand how to stay on the right side of the law.

Cartel conduct is prohibited under section 30 of the Commerce Act. As of 8 April 2021, cartel conduct is punishable with a term of imprisonment of up to 7 years, underlying just how serious and harmful offending of this nature can be. The conduct in this case occurred before 8 April 2021.

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