Fair Competition Act (Legal Notice No. 42 of 1995)

Summary:

The Fair Competition Act promotes and maintains effective competition in markets. It prohibits anti-competitive agreements, prevents abuse of dominance, and restricts misleading or deceptive conduct. It ensures fair pricing, protects consumers, and supports open and efficient market conditions across sectors.

Description:

 

Who the Act applies to

The Fair Competition Act applies broadly to “enterprises”, defined as any person carrying on business in Jamaica, whether individually or through corporate structures (section 2). Enterprises include: partnerships, and other commercial actors engaged in the supply of goods or services.

The Act also covers “dealers” (persons supplying goods wholesale or retail) and “suppliers”, as well as consumers, defined as persons receiving goods or services outside the course of business (section 2).

What conduct is covered

The Act prohibits:

1. Anti-competitive agreements including price fixing (section 34) and misleading advertising (section 37).
2. Abuse of dominant position (sections 19-20)
3. Resale price maintenance
4. Exclusive dealing, tied selling and market restrictions where suppliers impose conditions limiting competition (section 33).
5. Misleading and deceptive conduct including false advertising and misleading representation to consumers (sections 37-38).
6. Other unfair practices.

Key terms