The Fair Trading Commission (FTC) has conducted numerous investigations into the practice by some businesses to create and manage a list of preferred complementary service providers they engage with. The exclusive list of preferred providers is often referred to as a panel and its use is widespread among commercial banks, insurance companies and mortgage banks, among others.
While the FTC is aware that there is legitimate business justification for the practice, it also acknowledges that the use of panels by businesses with a large customer base may create a distinct competitive advantage for preferred providers over excluded providers. Hence, it is the responsibility of the FTC to strike the right balance to ensure that the use of panels does not unduly lessen competition.
The FTC has developed a Position Paper offering draft guidelines which businesses may follow to minimise their exposure to competition law enforcement actions. These guidelines coincide with conditions under which the use of panels is unlikely to have the effect of lessening competition substantially. These guidelines rely extensively on lessons learned by the FTC from dealing with this issue in the past and from the experiences of other jurisdictions.
Before finalising the guidelines, the FTC seeks comments from individuals or businesses which may be directly or indirectly affected by the practice. The FTC would be especially interested in your perspectives on:
- The proposed time span for the renewal of panels;
- The adequacy of the FTC’s guidelines in addressing the key issues;
- Recommendations for other eligibility criteria or regulations.
The FTC will receive comments up until July 26, 2024.
Please send comments via email to ftc@cwjamaica.com