Managing competitively sensitive information
Published 25 September 2014
What you and your staff need to know
Competitively sensitive information covers any non-public strategic information about a business鈥檚 commercial policy. It includes, but is not limited to, future pricing and output plans. Historical commercial information is far less likely to be sensitive, particularly if individual businesses鈥� commercial activities cannot be identified in it.
Complying with competition law is good business practice. Long-term compliance saves money by avoiding the potential for fines and significant damage to a company鈥檚 reputation.
Being part of discussions of certain aspects of business with competitors and suppliers may risk a breach of competition law.
Discussions might take place in meetings, by phone or email, or face to face. Below are several key points you should always bear in mind in those situations, however they arise.
If you have any doubts, seek legal advice.
Things to avoid
In order to comply with competition law, it鈥檚 important that you don鈥檛:
- discuss with competitors your business鈥檚 future: pricing intentions, including rebates or discounts or commercial strategy, such as what, and to whom, you plan on selling and/or on what terms
- disclose any of your customers鈥� future pricing plans to other customers
- remain in any situation, professional or social, in which any competitor discusses their future pricing plans or other competitively sensitive information. Leave and seek the advice of a lawyer.
If you鈥檙e not sure, make sure you think before you:
- disclose your business鈥檚 current or historical cost or pricing information to a competitor
- discuss general conditions in your industry or projected industry pricing trends with your competitors (such discussions will not always break the law, but risk doing so)
Activities that don鈥檛 risk you breaking competition law
There are a lot of things that you can do without running the risk of breaking the law.
You can:
-
discuss with your competitors historical and aggregated industry pricing or cost trends (which don鈥檛 allow individual players鈥� pricing or costing to be identified). But be careful: don鈥檛 be part of discussions on future costs or prices, and don鈥檛 remain in a meeting on them
-
have friends in competing businesses - just keep these tips in mind
The consequences of breaching competition law can be very serious for you and your business.
These materials do not constitute legal advice and should not be relied upon as such.