The Commerce Commission has released its policy on when it will consider granting leniency in exchange for information.

Leniency means taking a lower level of enforcement action, or no action at all.

Commission Chair John Belgrave said that the final version of the policy replaces the draft circulated in March this year for public comment.

"I would like to thank those who took the time to study the draft policy, make comments and ask questions," Mr Belgrave said. "The feedback we received has been most useful. It was used to make changes that clarify the wording and reinforce the meaning of the policy."

Copies of the leniency policy have been distributed, it is on the Commission's website www.comcom.govt.nz and a copy follows this media release.

Media contact: Chair John Belgrave

Phone cellphone 021 650 045

Senior Advisor Communications Vincent Cholewa

Phone work (04) 498 0920

Leniency Policy

August 2000

Introduction

The Commission recognises that its investigations are often dependent on the assistance of individuals and businesses. It believes that such co-operation should be recognised. It is also realistic and appreciates that the possibility of being treated more leniently might make some participants more willing to co-operate.

The Commission has, therefore, decided to implement a publicly available leniency policy to assist it in its enforcement of the Commerce, Electricity Industry Reform and Fair Trading Acts.

While it is at the Commission's sole discretion, the leniency policy provides a guide to the circumstances under which requests for leniency may be considered. The leniency policy is flexible so that it can be adapted to fit the circumstances of each case.

The Meaning of Leniency

Leniency means that the Commission may decide to take a lower level of enforcement action, or no action at all, against you in exchange for your information and your full co-operation. A lower level of enforcement action may include a submission made by the Commission to the Court for a reduction in penalty on your behalf. A grant of leniency by the Commission does not prevent third party action.

The Leniency Policy Guidelines

If you or your business have been involved in behaviour that you believe may breach the Commerce, Electricity Industry Reform or Fair Trading Acts the Commission may, after careful consideration of all the relevant circumstances grant you, or your business, leniency.

While it is at the Commission's sole discretion, as a guide, the Commission is more likely to consider requests for leniency where individuals or businesses:

• fully inform the Commission about the behaviour that may breach the Commerce, Electricity Industry Reform or Fair Trading Acts

• are prepared to fully co-operate with the Commission during any subsequent investigation (or investigations). This includes a full, frank and truthful disclosure about their own behaviour and all relevant information (including written documents). Co-operation could also include giving evidence in court if necessary

• are prepared to pay compensation to injured parties where the Commission considers that this is appropriate

• upon discovering that their behaviour may breach the Commerce, Electricity Industry Reform or Fair Trading Acts, stop that behaviour immediately

• are willing to put in place an effective compliance programme

An individual or business is unlikely to be given leniency if they forced or encouraged others to take part in the activity for which they are seeking leniency.

Contact the Commission

If you have information about behaviour that you think breaches the Commerce, Electricity Industry Reform and Fair Trading Acts, the Commission encourages you to contact one of its enquiries' officers.

For Commerce Act and Electricity Industry Reform Act enquiries phone (04) 498 0911; for Fair Trading Act enquiries phone (09) 377 7316 or (04) 498 0911 or (03) 371 0298; fax number (for all enquiries) (04) 471 0771.

You are also encouraged to contact the Commission if you believe you can assist it with one of its current investigations.

Where possible the Commission will keep your identity confidential.