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Four Christchurch Harcourts franchisees and their franchisor face civil charges for allegedly fixing commission rates and prices, violating New Zealand’s competition laws.
The Commerce Commission has launched civil proceedings against four Christchurch Harcourts franchisees—Four Seasons Realty, Gold Real Estate Group, Grenadier Real Estate, and Holmwood Real Estate—and their franchisor, Harcourts Group, alleging they engaged in cartel conduct by coordinating commission rates and pricing.
The Commission claims these actions violated New Zealand’s Commerce Act by undermining fair competition, harming consumers through reduced choices and higher costs, despite the franchise relationship.
While the franchise model itself is not under attack, the case highlights the legal obligation for competing franchisees to avoid anti-competitive agreements.
No criminal charges have been filed, but the alleged conduct could lead to significant civil penalties.
The outcome may impact how franchise networks operate in regulated markets.
Cuatro franquiciados de Christchurch Harcourts y su franquiciador enfrentan cargos civiles por presuntamente fijar tasas de comisiones y precios, violando las leyes de competencia de Nueva Zelanda.