Review of Major Developments in the Area of Restrictive Business Practices
| Date | 01 December 1975 |
| Published date | 01 December 1975 |
| DOI | 10.1177/0003603X7502000409 |
| Subject Matter | Article |
REVIEW
'OF
MAJOR
DEVELOPMENTS
IN
THE
AREA
OF
RESTRICTIVE
BUSINESS
PRACTICES
by
THE
UNITED
NATIONS
CONFERENCE
ON
TRADE AND
DEVELOPMENT
SECRETARIAT
INTRODUCTION
1. This
report
does not
purport
to be an extensive review
of developments in the
area
of restrictive business practices
on a country-by-country basis. Rather, it seeks to highlight,
on the basis of the information available, the principal de-
velopments and trends which seem of relevance in the con-
text of consideration by the Committee on Manufactures
of restrictive business practices from the point of view of
the
trade
and
development interests of developing countries.
As such, the
report
should assist the Committee to determine
those aspects of restrictive business practices on which
greater
attention should be focused than in the past,
at
both
the national and the international levels.
In
addition,
it
is
intended
that
the
report
and
the discussions on it should pro-
vide a background
for
the Committee's consideration of the
two other principal
reports
before it, namely:
(a) Informational requirements
for
the control of
reo
strictive business practices originating with firms of
developed countries
(TDjBjC.2/156);
and
(b) Issues
for
consideration in the context of determin-
ing the elements of a model law or laws on restrictive
business practices
for
developing countries
(TDj
BjC.2/160).
The designations employed
and
the presentation of the material
in this report do not imply the expression of
any
opinion whatsoever
on the
part
of the secretariat of the United Nations concerning the
legal status of
any
country or
territory
or of its authorities, or con-
cerning the delimitation of its frontiers.
887
888
THE
ANTITRUST
BULLETIN
I.
Developments in the Control of Restrictive Business
Practices in Developed and Developing Countries
2. As a result of the increased recognition in many coun-
tries of the adverse effects of
particular
restrictive business
practices on
trade
and
development, laws controlling such
practices have continued to evolve in terms of
their
coverage
and emphasis. This evolution is more marked in the developed
then in developing countries,
and
is reflected
in:
(a) Specific legislative amendments and the enactment
of new legislation;
(b) Court decisions and interpretations on the scope and
intention of the laws;
and
(c) Day-to-day administrative action with
regard
to the
application and enforcement of such laws.
3.
In
the above context, one of the important develop-
ments in recent years has been the widening of
the
scope
of restrictive business practice legislation to provide
greater
protection for acountry's national interests as a whole and,
in particular, those of the consumer.
For
example, a major
feature of new legislation enacted or under consideration in
Australia,' Canada," and the United Kingdom," is the inclu-
sion of specific provisions relating to consumer protection.
Similar action has been taken in
Israel-
and Yugoalavia,"
In
such instances, wide powers have been conferred upon the
competent administering authority to safeguard the con-
sumer against
unfair
trading practices
and
business conduct.
Typical practices which
are
prohibited or controlled in this
1Australian
Trade
Practices Act 1974,
Part
V.
2Bill of 1974 before the Canadian House of Commons to amend
the Combines Investigation Act, section 18.
SThe United Kingdom
Fair
Trading
Act 1973,
parts
II
and
III.
"Bill of 1974 to amend the Israeli Restrictive Trade Practices Law
of 1959.
SYugoslav
Law
of 10 May 1974, concerning
Act
on the Suppres-
sion of Unfair Competition
and
Monopolistic Agreements,
part
II.
RESTRICTIVE BUSINESS PRACTICES
889
connexion are retail or resale price maintenance, misleading
advertising,
referral
and pyramid selling," the selling of
products not meeting with established safety standards and
the related question of warranties
and
guarantees.
4. Another
important
development
has
been the exten-
sion of restrictive practice legislation to cover agreements
in the supply of commercial and professional services. Such
action is a reflection of the continuing
and
growing import-
ance of the service sector in many countries, as well as a
recognition of the need to control restrictive business prac-
tices in all sectors of the economy.
For
example, action in
this connexion has been taken in the United Kingdom under
the
Fair
Trading Act," and in Australia. Likewise in Canada
the Government has proposed to
Parliament
that
all services
should be covered by the Combines Investigation Act, whether
they relate to services in industry, trade, the professions, or
otherwise,"
5. Moreover, in the United States, whilst there have been
no
major
changes in the anti-trust laws, the Government" has
recently decided
that
there. should be more "vigorous enforce-
ment" of these laws in the services sector.
In
this connexion
action is being taken
at
both federal
and
state levels, and
at
the federal level action is also being taken to achieve in-
creased control of restrictive business practices in govern-
ment-regulated industries or services such as television, tele-
phone, petroleum, shipping, aeronautics
and
the operations of
the stock exchanges.w
6
Pyramid
selling is an arrangement which depends on each par-
ticipant being able to recruit
further
participants, and referral sell-
ing is the practice of offering buyers of a product a commission on
further
sales to persons whose names they supply.
'f
Fair
Trading Act,
part
X.
8Bill of 1974, op. cit., section 1.
• 9 Economic programme outlined by President
Ford
on 8 Octo-
ber 1974.
10
See Annual Reports on Competititm Policy in OECD Member
Countries 1974,
No.2,
paras. 323-332;
and
The Financial Times, 28
November 1974.
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