Trade Associations

Trade associations play an important role in promoting the interests of their members. However, anti-competitive behaviour by a trade association can have serious consequences for both the association and its members.

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A trade association, also known as an industry group, business association, or sector association, is an organisation established and funded by businesses within a specific industry.

These associations often focus on public relations activities such as advertising, education, political donations, lobbying and publishing, but their primary role is collaboration between companies or setting industry standards. Many sectors of Jersey’s economy have trade associations, and many businesses are members of international trade associations.

How does the Competition Law apply to trade associations?

The Competition Law applies to the decisions, rules, recommendations or activities of trade associations and professional bodies in the same way it applies to individual businesses.

Being part of a trade association does not exempt members from compliance with the Competition Law. The prohibition of anti-competitive arrangements applies if an activity has the object or effect of preventing or hindering competition in a Jersey market.

The golden rule is that businesses should determine their commercial strategy independently and must not discuss these strategies with competitors.

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Examples of potentially anti-competitive activities

Trade associations must avoid engaging in or facilitating activities that may breach competition rules. Examples include:

Price-fixing or price-coordination: setting or coordinating prices for products or services
Exchanging price-related information: sharing pricing policies or other information that could lead to price coordination
Restricting advertising: limiting the volume, nature or form of advertising in a way that may distort the market
Coordinated joint activities: activities such as joint buying, selling or research that are organised through a trade association
Membership restrictions or codes of conduct: requirements that may restrict competition, such as enforcing minimum industry standards

Involvement in anti-competitive behaviours could result in us carrying out a formal investigation into the trade association, its members, or both.

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In the section

Trade Associations

Guidance and Exemption Applications

Avoiding anti-competitive behaviour

Report a competition Issue