Manawatu
real estate agent Timothy Mordaunt has been fined $50,000 for initiating a
price-fixing ring amongst local agents and his business Property Brokers Ltd was
fined $1.45 million.
Mr Mourdant admitted he
breached the Commerce Act by colluding with at least ten other Manawatu real
estate agents in late 2013 to pass on Trade Me’s $159 listing fee for each
property when Trade Me dropped its initial subscription pricing model. The Commerce Commission said this collusion
amounted to price-fixing; agents were agreeing not to compete on price.
The court was told Mr
Mourdant organised, hosted and chaired a meeting at which the Manawatu
price-fixing agreement was decided. He
co-ordinated its implementation and later attempted to expand its operation.
Property Brokers Ltd is
owned by Mr Mourdaunt’s family trust.
Other real estate agents in the Manawatu region have been prosecuted and
fined for their involvement in the price-fixing agreement. Price fixing arrangements are often hard to
detect. The Commerce Act imposes heavy
penalties for any breach.
Commerce
Commission v. Property Brokers Ltd – High Court (10.04.17)
17.033