The Mauritius Chamber of Commerce and Industry (MCCI) is collaborating with the Competition Commission of Mauritius (CCM) to disseminate information on the Resale Price Maintenance (RPM) Amnesty Programme. MCCI shall act as a facilitator for members and non members seeking preliminary informal information and guidance on this RPM Amnesty Programme.
Operators who do not want to contact the CCM directly may wish to meet and discuss with MCCI staff on their specific resale practice and conduct in a confidential manner.
What is Resale Price Maintenance?
RPM is illegal in Mauritius under the Competition Act. Also known as ‘Prix de vente imposé’, RPM exists with a supplier establishing the minimum or fixed price or price level at which the product must be re-sold to customers, thus impeding the discretion of resellers to cut prices.
However, suppliers may recommend prices in so far that they are not binding on the resellers.
Consequence of engaging in Resale Price Maintenance
Enterprises engaging in RPM may be liable to financial penalties of up to 10% of their turnover for a maximum period of 5 years of the breach. This fine can be very significant for enterprises. For example if an enterprise with an average annual turnover of Rs. 50 million engages in RPM for 5 years it may be liable to fines of up to Rs. 25 million.
The RPM Amnesty Programme
With the RPM Amnesty programme any enterprise who has engaged in RPM may benefit from immunity under certain conditions.
The MCCI encourages any enterprise who has engaged in RPM to take advantage of the Amnesty programme.