New Zealand’s Commerce Commission has alleged four Harcourts franchisees have engaged in cartel conduct.
The four Christchurch businesses are Harcourts franchisees Four Seasons Realty 2017 Limited, Gold Real Estate Group Limited, Grenadier Real Estate Limited, and Holmwood Real Estate Limited. The Commerce Commission alleges the businesses’ franchisor, Harcourts Group Limited, was a party to the agreements.
Commerce Commission Chair Dr John Small said “The Commission alleges this conduct was damaging because, between them, the franchisees had a significant share of the Christchurch real estate market.
“For most Kiwis, buying and selling a house is a major transaction. People should be able to trust the process is free of collusion.”
Dr Small said “Franchisees need to be aware of when and where they compete with one another and ensure that they do not engage in cartel conduct, which carries significant risks such as criminal sanctions and potential penalties under the Commerce Act.”
A spokesperson for Harcourts New Zealand said “Harcourts NZ confirms that we have received proceedings from the Commerce Commission. We take any allegations seriously and have co-operated with the Commerce Commission’s process. As this is a legal matter, we will not be making further comment.”
