Watchdog warns Trade Me gold trader

The Commerce Commission has warned an online Trade Me dealer in precious metals over attempts to form a cartel and fix prices.

Silver Seller and its director Jacob Martin are said by the Commission to have attempted to have formed an agreement with a competitor to fix prices offered when selling gold and silver on Trade Me.

The competitor alerted Trade Me and the Commission, resulting in Silver Seller being investigated by the competition watchdog and banned from trading on the website

"Price fixing harms competition, downstream businesses and consumers. An attempt to fix prices in any industry or market is viewed seriously by the Commission," said manager of competition Ritchie Hutton.

Martin and Silver Seller would not be prosecuted in this instance, Hutton said, but future collusion could result in stronger enforcement action.

- © Fairfax NZ News