Commerce Commission receives infant formula authorisation

Commerce Commission receives infant formula authorisation application

The Commerce Commission has received an application from the Infant Nutrition Council (INC) seeking authorisation to restrict their marketing activities of infant formula for children under six months of age.

The INC is the association for the infant formula industry in Australia and New Zealand. Its membership is comprised of manufacturers, marketers and importers of infant formula.

The restrictions under the agreement include not advertising infant formula, not distributing gifts or free samples to pregnant mothers or caregivers and not offering inducements to health professionals to promote infant formula. These restrictions give effect to the International Code of Marketing of Breast Milk Substitutes which aims to protect and promote breastfeeding, and to restrict the marketing of breast milk substitutes in ways that would undermine this aim.

Anyone who has an interest in this matter and who wants to make a submission can contact the Commission atregistrar@comcom.govt.nz with the reference Infant Formula in the subject line of the email.

A public version of the application will shortly be available on the Commission's websitehttp://www.comcom.govt.nz/business-competition/anti-competitive-practices/anti-competitive-practices-authorisations-register/
Background
The Commission may grant authorisation under section 58 of the Commerce Act for certain agreements that may otherwise breach the Commerce Act if it is satisfied that the public benefits of the agreements outweigh the detriments arising from the loss of competition.

The granting of a restrictive trade practice authorisation protects the applicant from court action under the Commerce Act by the Commission and private individuals.

The Commission’s Authorisation Guidelines explain when anti-competitive agreements will be authorised and the process used to determine authorisation applications. www.comcom.govt.nz/business-competition/guidelines-2/authorisation-guidelines/

ENDS

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