Several bricklayers operating in the Blenheim area have been warned by the Commerce Commission following an investigation into suspected cartel behaviour.

G J Marfell Ltd, Mike Vis Bricklaying Ltd, and bricklayers Benjamin Robertson and Andrew Dwyer received warnings after the Commission found they may have breached section 30 of the Commerce Act, which prohibits cartel conduct.

The conduct involved the use of so-called “courtesy calls”, including text message exchanges, to discuss quotes for projects.

Commerce Commission chairman Dr John Small said such discussions, particularly when specific pricing was shared, could lead to cover pricing, a form of bid-rigging.

He said the warnings were appropriate because although the conduct was serious, the potential financial harm was limited.

“These are warnings, but we want to highlight this case as an important reminder to all tradespeople that they must understand and comply with their obligations under the law,” Small said.

“The bricklayers’ actions impacted several building projects in the Blenheim area.”

The Commission launched its investigation after receiving a tip-off through its anonymous reporting tool. The investigation found several series of problematic text messages between individual bricklayers from 2020 to 2021.

The messages were exchanged when one bricklayer was approached by a customer usually serviced by another. They revealed multiple instances of pricing discussions, and in some cases, one bricklayer submitted an inflated quote to allow another to win the work.

The Commission said this amounted to market allocation and likely deceived customers seeking genuine, competitive quotes.

“The bricklayers’ actions likely deceived their customers, who in good faith sought multiple, competitive quotes,” Small said. “It is crucial that sole traders and businesses ensure their commercial dealings with competitors are lawful.”

The Commission also found concerning behaviour during the investigation, saying some bricklayers appeared to frustrate or fail to comply with requests for information.

As a result, G J Marfell Ltd and Benjamin Robertson were also warned for potentially breaching section 103 of the Commerce Act.

The Commission said tackling cartels remains one of its enforcement priorities because anti-competitive practices lead to higher prices, reduced choice, and lower service quality for consumers.

Under the Commerce Act, cartel conduct can include price-fixing, market allocation, bid-rigging, or limiting output. It is punishable by up to seven years’ imprisonment and significant financial penalties.

Members of the public can report suspected cartel activity through the Commission’s anonymous reporting tool at https://report.whistleb.com/en/comcom.