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Competition Act, 1998 (Act No. 89 of 1998)

Chapter 2 : Prohibited Practices

Part A : Restrictive Practices

5. Restrictive vertical practices prohibited

 

(1) An agreement between parties in a vertical relationship is prohibited if it has the effect of substantially preventing or lessening competition in a market, unless a party to the agreement can prove that any technological, efficiency or other pro-competitive, gain resulting from that agreement outweighs that effect.

 

(2) The practice of minimum resale price maintenance is prohibited.

 

(3) Despite subsection (2), a supplier or producer may recommend a minimum resale price to the reseller of a good or service provided—
(a) the supplier or producer makes it clear to the reseller that the recommendation is not binding; and
(b) if the product has its price stated on it, the words "recommended price" appear next to the stated price.

 

(4) The Minister must make regulations in terms of section 78 regarding the application of this section.

[Section 5(4) inserted by section 4 of Notice No. 175, GG 42231, dated 14 February 2019]

 

 


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