[Singapore] Illegal Price Fixing Activity on E-commerce: What Carousell Sellers and Buyers Need to Know

Hey there, Carousell sellers! 👋 Whether you're an individual seller or running a business, it's important to know that price fixing is not allowed under Singapore’s competition law.

What is Price Fixing?

Price fixing occurs when sellers communicate with each other on what the prices of their goods/services will (or should) be, rather than determining their own prices independently.  It includes any agreement between sellers to match each other’s prices or to fix a component of their prices. It also includes agreements between them on what discounts to give buyers. 

Generally, communication between sellers which restrict the way in which they compete with each other in a marketplace (even virtual ones) is prohibited.

Why are Price Fixing Agreements Prohibited?

Healthy competition between sellers generally results in benefits to consumers in the form of:

• 😊Lower prices 
• 😊Better quality of goods and services
• 😊More choices 
• 😊Greater innovation

as the competing sellers seek to distinguish themselves on the marketplace.  

Price fixing restricts price competition between sellers and is one of the most serious forms of anti-competitive behaviour.

The Competition and Consumer Commission of Singapore (CCCS) will not hesitate to investigate sellers who may be engaging in price fixing activities and will take appropriate measures against those who are found to have infringed the law.

Sellers engaged in price fixing could face serious consequences including:

💰Financial penalties by CCCS
⚖️Legal action by affected buyers

How Should Sellers/Businesses Set Their Prices?

As a seller, you should:

✅Set your prices independently from your competitors based on your costs and market research
✅Not discuss pricing strategies with other sellers
✅Make your own decisions about sales, discounts and promotions
✅Compete fairly with other sellers

⚠️If you find yourself in a situation where a competitor attempts to discuss anti-competitive tactics or business plans with you, end the discussion immediately. You should distance yourself from such discussions and make clear your objections. Report the contact to CCCS.

What can Buyers do?

Stay Alert:
✅Compare prices on the same product across platforms.
✅Report suspected anti-competitive conduct to CCCS.

💡Remember: Even casual/informal agreements between small sellers can constitute price fixing.

📢If you have useful information about cartel activities such as price fixing, bid-rigging, market sharing and production control in Singapore and wish to provide information under CCCS’s reward/whistle-blowing scheme, you can find out more about the scheme here. In appropriate cases, a monetary reward can be paid to informants for information that leads to infringement decisions.  

📢If you are currently part of a cartel and wish to come forward under CCCS’s leniency programme, you can find out more about the programme here. You may receive a waiver or reduction in financial penalties (subject to conditions being met). 

💯Stay competitive, price independently, and keep our marketplace fair for everyone.