New Zealand stops online tyre price fixing scam

ERJ staff report (DS)

Auckland, new Zealand -- New Zealand's Commerce Commission has reached administrative settlements with two web-based tyre sellers who admitted that they had been illegally fixing prices for tyres. Thye activity occured on the local Trade Me web pages.

The sellers, Tyre Guys Limited trading as tyre_guys and Adens Trading Limited trading as adenstyreshop, contacted each other via comments on Trade Me pages, text messages and emails. Between 12 and 27 January 2010, the owner of Tyre Guys Limited sent his prices via email for six tyre brands to Adens Trading Limited, who then matched those prices for three of the brands. Both traders made sales at the fixed prices.

“Although the price fixing only took place for a short time and the sellers offered competitive prices before and after the collusive period, consumers were likely to pay more than they otherwise would have,” said Ritchie Hutton, Commerce Commission Acting General Manager, Enforcement.

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Press release from New Zealand's Commerce Commission