Competition Act, 1998 (Act No. 89 of 1998)Chapter 2 : Prohibited PracticesPart A : Restrictive Practices5. Restrictive vertical practices prohibited |
| (1) | An agreement between parties in a vertical relationship is prohibited if it has the effect of substantially preventing or lessening competition in a market, unless a party to the agreement can prove that any technological, efficiency or other pro-competitive, gain resulting from that agreement outweighs that effect. |
| (2) | The practice of minimum resale price maintenance is prohibited. |
| (3) | Despite subsection (2), a supplier or producer may recommend a minimum resale price to the reseller of a good or service provided— |
| (a) | the supplier or producer makes it clear to the reseller that the recommendation is not binding; and |
| (b) | if the product has its price stated on it, the words "recommended price" appear next to the stated price. |
| (4) | The Minister must make regulations in terms of section 78 regarding the application of this section. |
[Section 5(4) inserted by section 4 of Notice No. 175, GG 42231, dated 14 February 2019]