January 04 2018
There is a debate in competition law at present concerning whether a company can restrict online sales for their products. Under New Zealand competition law, a supplier restricting its customers from selling on online platforms could be penalised if:
However, legitimate and pro-competitive justifications can be relevant in assessing the legality of such restrictions under any of the following prohibitions:
The recognition that businesses have a legitimate interest in protecting the luxury image of their brands through restricting online sales is relevant in considering such restrictions under New Zealand law.
For further information on this topic please contact Sarah Keene or Troy Pilkington at Russell McVeagh by telephone (+64 9 367 8000) or email (firstname.lastname@example.org or email@example.com). The Russell McVeagh website can be accessed at www.russellmcveagh.co.nz.
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