16 December 2010
Both the Federal Government and the Opposition have proposed new legislation on the subject of “price signalling”. Price signalling is a practice by which corporations inform their rivals about price actions and intentions, so as to eliminate uncertainty about the price of their product, therefore reducing the inherent risks of competition.
While the proposals have been prompted by political controversy concerning the conduct of banks, the reforms may apply to other sectors of the economy, such as the sale of land by developers.
The proposed changes may make it unlawful to make public statements or privately inform a third party about pricing intentions, such as an economic forecaster, in circumstances where it could be inferred that the purpose was to ensure that competitors were aware of likely pricing decisions.
A parliamentary inquiry is underway into the Opposition’s proposals (details here; submissions close 28 January 2010) and the Federal Government has released a consultation paper on its proposals (details here; submissions close 14 January 2010).
Please contact us if you think there are matters we should raise in a submission.
