Commerce Commission: Canterbury cleaning company’s cartel conduct

The Commerce Commission says a penalty hearing has been scheduled for June in the High Court at Christchurch. Photo / George Heard

The Commerce Commission has alleged that industrial cleaning company Canterbury Industrial Scrubbing Limited (CI Scrubbing) engaged in cartel conduct.

The regulator claimed CI Scrubbing colluded with a competitor to allocate customers.

“The commission and the defendants have entered into a settlement to resolve the proceedings,” the regulator said in a statement today.

A penalty hearing has been scheduled for June 10 in the High Court at Christchurch.

The commission said CI Scrubbing director Daniel Jamieson also engaged in the cartel behaviour.

The alleged cartel activity happened more than three years ago.

The Commerce Commission said cartel behaviour happened when two or more businesses agreed 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,” the commission added.

“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 behaviour is banned under the Commerce Act.

Canterbury Industrial Scrubbing was incorporated in 2003, according to the Companies Office.