NAOMI NGnaomi.ng@scmp.com
PUBLISHED : Tuesday, 03 November, 2015, 12:01am
UPDATED : Tuesday, 03 November, 2015, 12:00am
Dr Stanley Wong, chief executive of the Competition Commission, said violations of the law could be as seemingly innocent as salespeople discussing and agreeing with their competitors on prices, or restricting volumes of goods. Photo: May Tse
The head of the city's competition watchdog has warned that company employees who engage in conduct in violation of the coming competition law will be held personally liable in addition to any liability incurred by employers under the legislation.
"The reality is, even if you're a low-level salesperson, you may be personally liable," said Dr Stanley Wong, chief executive of the Competition Commission.
Wong said violations of the law could be as seemingly innocent as salespeople discussing and agreeing with their competitors on prices, or restricting volumes of goods.
READ MORE: Hong Kong competition law: advice for companies on staying within the new rules
Wong's warning came as the commission, the statutory body which investigates anti-competition practices, unveiled a toolkit for small and medium-sized enterprises to help them comply with the new law, which will be fully enforced from December 14.
Such companies account for more than 98 per cent of Hong Kong businesses, so Wong said they were a "major focus" of the body's advocacy and engagement plan.
A sales of a fitness centre proposes plans to her customers. Photo: Edmond So
The toolkit, which is available to download online, highlights four kinds of conduct that could be identified as high risk behaviour. These include price fixing, market sharing, output restriction and bid rigging.
There are certain exemptions for some businesses. If a case is not regarded as a serious violation, and the companies involved have a combined turnover of less than HK$200 million, they will not be liable under the first conduct rule in the law which prohibits businesses from making agreements with more than one party to prevent competition.
The second conduct rule, which prohibits anti-competitive conduct by a party with substantial market power, does not apply to businesses with a turnover of less than HK$40 million.
The commission advised companies to come up with a compliance policy, and provide training to "frontline" staff such as those involved in annual industry conferences or trade association meetings where competition discussions could take place.
"Companies have to try to bring home compliance on the personal level ... Don't think you can engage in loose talk," Wong said. "It's your risk; it's also the company's risk."
In June the commission distributed guidelines to over 500 trade associations.
http://m.scmp.com/news/hong-kong/economy/article/1875087/workers-can-be-personally-liable-violations-coming
