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GS1 Competition Law Policy
As a neutral, not-for-profit, industry-driven standards organisation, GS1 Kenya Limited supports industry efficiency and productivity by bringing together representatives of all sizes, from all segments of the value chain to address common challenges and opportunities.
GS1 Kenya Limited is committed to strict compliance with all applicable competition laws and exercises extreme care to avoid violations.
The aim of this Competition Law Policy Statement ("the Policy") is to deter any anticompetitive conduct. It applies to all participants in GS1 Kenya Limited activities, including staff, members and external stakeholders who must follow this Policy to minimise this risk and justifiably participate in the development of global standards and best industry practices.
Participants acknowledge that the underlying aim of GS1 Kenya Limited activities is to enhance the ability of organisations of all sizes to compete more efficiently and effectively through the implementation of efficient supply chain practices based on GS1 standards, protocols and services.
Every company participating in GS1 Kenya Limited activities remain individually responsible for its own compliance with applicable competition laws and this Policy does not detract from that responsibility.
Adherence to Law
All discussions and activities held at GS1 Kenya Limited, whether in-person, virtual or hosted externally, must be conducted in strict compliance with the Competition Act of 2010 and the Consumer Protection Act of 2012. This legislation encompasses the following elements:
- The law regulates competition and consumer protection in Kenya
- It aims to promote fair competition and prevent practices that distort business markets
- It prohibits restrictive trade practices, abuse of dominant position and unfair trade practices.
- It also controls mergers and acquisitions to ensure they don't substantially lessen competition
Key Practices to be Followed
GS1 Kenya Limited adopts the following practices in all activities:
- Voluntary participation. Participation in GS1 Kenya Limited activities is voluntary and failure to participate shall not be used to penalise any company.
- Governance. Meetings shall be governed by an agenda prepared in advance and recorded by minutes prepared promptly after the meeting.
- Termination of improper discussion. If a meeting or discussion covers a subject contrary to this Policy, GS1 Kenya Limited will terminate the meeting or discussion immediately. Any participant may request GS1 Kenya Limited to terminate a meeting or discussion if it is felt that the Policy has been breached.
- Social events / coffee breaks. No discussion or conduct at social events incidental to GS1 Kenya Limited activities (e.g. dinner, lunch, and coffee breaks) should occur that would not be proper during the activities themselves.
- Recommendations. The outputs of GS1 Kenya Limited have the status of recommendations. Individual companies remain free to make independent, competitive decisions about implementation.
- Voluntary standards. Any standards developed must be voluntary standards.
Competition Law Caution
Additionally to the above listed practices, to ensure participants awareness as well as members of GS1 Kenya Limited staff, the GS1 Competition Law Caution shall be included in meeting materials and read out loud before every meeting with multiple user companies of the GS1 System and/or any other stakeholders, or at least the following shorter version:
"GS1 operates under the GS1 Competition Law Caution. Strict compliance with competition laws is and always has been the policy of GS1.
The best way to avoid problems is to remember that the purpose of the group is to enhance the ability of all industry members to compete more efficiently.
This means:
- There shall be no discussion of prices, allocation of customers, or products, boycotts, refusals to deal, or market share.
- If any participant believes the group is drifting toward impermissible discussion, the topic shall be tabled until the opinion of counsel can be obtained
The full caution is available via the link below, if you would like to read it in its entirety:
http://www.gs1.org/gs1-competition-law-caution"
Impermissible Discussions
In all GS1 Kenya Limited activities, there shall be no discussion of commercial terms or exchanges of commercially sensitive information that are contrary to applicable competition laws, including the Competition Act of 2010, the Data Protection Act of 2019, the Industrial Property Law of 2001 and the GS1 Competition Law Caution. This includes:
- Agreeing to raise, lower, hold or fix present or future purchase or selling prices or other factors that might affect prices such as discounts or margins, and terms and conditions of sale;
- Agreeing to limit or control production, markets, technical development or investment;
- Agreeing to any restrictions upon production, boycotts or refusals to deal;
- Agreeing to share markets or supply sources or allocation of territories, markets, or customers;
- Agreeing to apply different trading conditions to equivalent transactions, thereby placing some parties at a competitive disadvantage.
- Any discussions of profits, profit margins or cost data of one's own, or those of a competitor; and
- Any discussions regarding selection, rejection, or termination of customers or suppliers.
Training and Awareness
- GS1 Kenya Limited members of staff receive regular training on competition law matters.
- GS1 Kenya Limited will hold its members of staff to strict adherence to the principles and guidelines of Competition Law.
- GS1 Kenya members of staff will maintain confidentiality & proper information handling by protecting sensitive GS1 Kenya information and ensure internal policies that will prevent information exchange especially in industry associations.
- GS1 Kenya will promote fair trading & consumer protection by avoiding misleading advertising or deceptive practices and ensure accurate product information and fair pricing.
Reporting and Enforcement
Any suspected breach of this Policy or applicable competition laws should be reported promptly to the Competition Authority of Kenya which is also supported by the Competition Tribunal. GS1 Kenya Limited will investigate all reports and take appropriate action(s).
Review and Update
The Policy is reviewed periodically to ensure ongoing compliance with legal requirements and best practices.