Commission publishes draft leniency policy; seeks public comment
Published07 Mar 2000
When should the Commerce Commission show leniency to a "whistleblower"?
That is the question asked in the Commission's just published draft leniency policy. The draft policy gives the Commission's preliminary view on when it should take a lower level of enforcement action, or none at all, in exchange for assistance with an investigation.
The draft policy proposes that the Commission would consider requests for leniency where individuals or businesses:
inform the Commission about behaviour that might breach the Commerce, Electricity Industry Reform and Fair Trading Acts
are prepared to fully co-operate, which includes disclosing their own behaviour and all relevant information, and giving evidence in court if necessary
are prepared to pay compensation where the Commission considers that this is appropriate
immediately stop the behaviour that might breach one of the Acts
are willing to put in place an effective compliance programme.
"We are developing this policy to give our staff and the public clear guidelines," Commission Chair John Belgrave said. "We do occasionally receive requests for leniency, and all requests should be treated consistently.
"We are a publicly funded law enforcement agency, and the public be they potential whistleblowers, subjects of investigations or others has a right to know how we operate.
"A leniency policy is one of the investigative tools that we can use to do our job of bringing about compliance with three Acts.
"Much of the activity that we investigate occurs behind closed doors and, at times, the Commission has to rely on the assistance of individuals and businesses. Their co-operation should be recognised. We also appreciate that the possibility of being treated more leniently might make some people more willing to co-operate."
The Commission is calling for public comment on the draft policy. Copies have been sent to 800 businesses, consumer groups, government organisations, lawyers, economists, academics and business advisors. Further copies are available free of charge from Commission offices. Comments are due by Friday April 28.
