HP New Zealand (HPNZ) is seeking authorisation to engage in resale price maintenance for its products for up to 10 years. 

HPNZ is the local importer, distributor and supplier of HP-branded technology products in New Zealand. 

The company operates the HP-branded Online Stores, but does not sell directly to consumers. Instead, it sells goods to a local entity, which then transacts with the consumers purchasing goods from the HP Online Stores. 

The firm currently controls the retail prices at which that local entity can sell its products to customers through the HP Online Stores. It does not, however, control the prices at which the entity sells through other channels.

The Commerce Commission previously authorised this pricing arrangement in August 2021 for a five-year term. As this authorisation is due to expire on August 31, the company is applying to extend it for another 10 years. 

In its submission, HPNZ listed several benefits of the arrangement, including faster and more predictable delivery times, competitive pricing and promotions, a wider range of choice for customers, and higher-quality customer service. 

The company also said that no detriments arise from the arrangement, as it does not affect any other distributor or reseller of HP products. 

The commission has published a statement of preliminary issues relating to this application and is inviting interested parties to provide comments on the likely benefits and detriments of the proposed arrangements, including any likely competitive effects. 

Any submissions should be received by the close of business on May 19. The regulator will make its decision by October 21. 

Resale price maintenance occurs when a supplier of goods enforces a minimum price at which a reseller must resell those goods. The conduct prevents resellers from setting their prices independently and can lead to increased prices for consumers. 

Resale price maintenance is a form of anti-competitive conduct and is unlawful unless authorised by the Commerce Commission.