Updated drafts of the Default Distributor Agreement (DDA) material
The Authority has published updated drafts of the Default Distributor Agreement (DDA) material, for the information of interested parties.
The Court of Appeal has requested additional submissions from the parties involved in the case before it can make a final decision on all aspects of Vector’s claim that the Authority does not have the power to introduce a DDA. As part of our submission, we will provide the draft proposed DDA template and amendments to Part 12A.
So that all interested parties have access to the same information, we have published the draft DDA template, draft Part 12A, and also the draft DDA consultation paper on our website. We are not consulting on these documents at present; they were provided for information only. We intend to continue developing the DDA proposal consistent with our statutory objective and will consult on a further version in the near future, once we have the final decision of the Court of Appeal.
Compared with the previous DDA proposal released for consultation in January 2016, the main changes relate to the introduction of a third category of terms in the DDA which we have called ‘recorded terms’. Recorded terms are ones required by the Code, but distributors and retailers are free to negotiate these terms as they see fit. In the revised draft proposal, some terms that were previously given as ‘core terms’ have been re-categorised as recorded terms. Recorded terms are provisions which we believe are arguably within the scope of the Commerce Commission’s authority to regulate.