Competition law compliance is not just a concern for multinational corporations. In Jamaica, it matters for any business that negotiates distribution deals, participates in tenders, sets prices, or collaborates with industry peers. The commercial upside of getting it right is straightforward: stronger, more defensible contracts, fewer regulatory distractions, and lower reputational risk.
This guide explains how competition law in Jamaica generally works, where businesses most often get exposed, and practical compliance tips you can implement without slowing down day to day operations.
Competition law in Jamaica, the basics businesses should know
Jamaica’s competition regime is primarily built around the Fair Competition Act and enforced by the Jamaica Fair Trading Commission (JFTC). The policy objective is to protect the competitive process, which in turn supports consumer welfare, innovation, and efficiency.
In practical terms, the law focuses on conduct that can substantially lessen competition, such as:
Anti-competitive agreements (for example, price fixing, bid rigging, market sharing)
Misuse of market power (often discussed as abuse of dominance)
Certain vertical restraints (depending on their effect on competition)
Mergers, acquisitions, and joint ventures that may lessen competition
Even when a commercial arrangement seems “normal” in the industry, it can still attract scrutiny if it reduces customer choice or makes markets less competitive. A common compliance mistake is treating competition risk as a niche legal issue rather than a commercial risk that should be managed alongside credit risk, data privacy, and procurement controls.
For background on the regulator and its guidance, see the Jamaica Fair Trading Commission website.
Where Jamaican businesses most often face competition law exposure
Most competition issues arise from routine business activity, especially in sectors where a few players account for large market shares, or where there are repeated interactions between competitors (trade associations, bids, shared logistics, and joint promotions).
Competitor interactions: the highest risk category
The most serious competition law risks typically involve arrangements between competitors, including:
Price coordination: agreeing (explicitly or implicitly) on prices, fees, markups, discounts, credit terms, or “minimums”
Market allocation: dividing customers, territories, routes, or product lines
Output restrictions: agreeing to limit production, inventory, service capacity, or operating hours
Bid rigging: coordinating responses to tenders, including cover bids, bid rotation, or agreement on who “should win”
These can be triggered by informal conversations just as easily as by written contracts. Messages in WhatsApp groups, industry dinners, and “quick calls” before tenders are common sources of evidence in investigations worldwide, and Jamaica is no exception in treating this conduct seriously.
Trade associations and industry meetings
Trade associations can be valuable, but they are also a frequent pathway to risky information exchange. The danger zone is sharing competitively sensitive information, such as future pricing, margins, costs, capacity, supplier terms, customer lists, or tender strategy.
If your team attends industry meetings, they should know how to:
Keep agendas and minutes
Avoid off agenda discussions about pricing or tenders
Leave (and document leaving) if discussions turn to sensitive topics
A well-intentioned meeting can become problematic if participants start “benchmarking” commercial decisions in a way that reduces independent decision-making.
Vertical arrangements: distributors, agents, dealers, and exclusive rights
Many Jamaican businesses rely on distribution networks, exclusive territories, and reseller relationships. These can be legitimate and efficiency-enhancing, but certain clauses can raise competition issues depending on market conditions and actual effects.
Common areas to review include:
Resale pricing controls: attempts to fix the resale price (as opposed to recommending a resale price)
Exclusive dealing: restrictions that prevent a distributor or retailer from carrying competing brands
Tying and bundling: making the purchase of one product conditional on the purchase of another
Most favoured customer clauses: terms that may restrict a counterparty’s ability to offer better terms elsewhere
The compliance goal is not to eliminate these clauses automatically, but to ensure they are commercially justified, proportionate, and assessed against market realities.
Dominance and “abuse of market power” risk
A business does not need to be a monopoly to attract attention. If you have significant market power in a relevant market, certain conduct is more likely to be characterised as exclusionary or unfair.
Examples that can raise risk (depending on facts) include predatory pricing allegations, unjustified refusal to supply, discriminatory pricing between similarly situated customers, or using a strong position in one market to distort competition in another.
Because “dominance” is a fact-specific assessment, businesses should be careful about assuming they are safe simply because there are other players in the space.
Mergers, acquisitions, and joint ventures
Mergers and joint ventures are often pursued for good reasons (scale, technology, geographic reach), but they can raise competition questions if they significantly reduce competitive constraints.
As a practical matter, transactions should be assessed early for competition risk, especially where:
Two close competitors are combining
The deal removes a disruptive new entrant
The merged entity may gain strong bargaining power against customers or suppliers
A practical competition compliance checklist you can implement
An effective programme is less about producing a perfect policy document and more about installing repeatable habits: how deals are reviewed, how staff communicate, and how risks are escalated.
1) Write a policy that matches your actual risk profile
A competition compliance policy should be short enough that business teams will use it, and specific enough that it changes behaviour.
At minimum, it should cover:
Rules on competitor contact (what is prohibited, what requires legal sign-off)
Trade association participation rules
Tender and procurement protocols
Guidelines for distribution arrangements (pricing, exclusivity, rebates)
Recordkeeping and escalation steps
If you operate across CARICOM or deal with overseas principals, align the policy with the strictest standard you face, then train locally on Jamaican realities.
2) Train the teams that “touch the market” most
Competition risk tends to sit with revenue generating and deal-making roles. Training should prioritise sales, procurement, marketing, senior management, and anyone who attends industry meetings.
Good training is scenario-based. For example: “A competitor asks for your planned price increase at a conference, what do you do?” The correct response should become automatic.
3) Put guardrails around tenders and procurement
Tendering is a high-risk environment because it naturally creates repeated interactions among competitors and strong incentives to coordinate.
Adopt clear internal protocols so your organisation can demonstrate independent decision-making. That includes documenting your pricing rationale, cost assumptions, and bid strategy development process.
If you participate in public procurement or large private tenders, it is worth establishing a “clean team” approach (limiting who can see bid sensitive information) and rules for who can communicate externally during a live tender.
4) Audit the contracts that most often contain competition risk
You do not need to review every contract first. Start with the agreements most likely to contain restrictive clauses:
Distribution and dealership agreements
Exclusive supply arrangements
Large customer agreements with rebate structures
Agency arrangements and franchise style models
Joint marketing and cooperation agreements
The point is to identify recurring clauses that create risk, then standardise compliant alternatives.
5) Control information flows, especially pricing and strategy
Many cases turn on information exchange rather than a signed agreement. Businesses should treat forward-looking pricing, margins, and tender strategies as sensitive.
Limit internal access to sensitive information on a need-to-know basis, and be deliberate about external communications. Informal channels matter. If your team uses WhatsApp for operational speed, they still need clear rules on what cannot be discussed.
Common risk areas and practical controls (quick reference)
Risk area | What it can look like in practice | Practical control that helps |
Price fixing or coordination | “Let’s all move to the same rate next month” in calls, meetings, or messages | Train teams to refuse, exit the conversation, and document the refusal, require legal escalation |
Bid rigging | Competitors agree who will win a tender, others submit cover bids | Tender protocol, restricted access to bid info, strict no-contact rule with competitors during active tenders |
Market sharing | “You take Kingston, we take Montego Bay” | Contract review and competitor-contact rules, monitor sales discussions at industry events |
Resale price maintenance | Forcing a dealer to sell at a fixed price | Use recommended resale prices (where appropriate) and avoid penalties tied to resale price without advice |
Exclusive dealing concerns | Blocking a distributor from carrying competing products without justification | Competition review of exclusivity scope, duration, and commercial rationale |
Abuse of dominance allegations | Discriminatory terms, tying, or exclusionary rebates in a concentrated market | Document objective justifications, apply consistent criteria, seek advice before aggressive campaigns |
Marketing and pricing transparency, an often overlooked compliance lever
Competition compliance is not only about agreements. It is also about building a culture of fair dealing that reduces complaints and regulatory attention.
One practical habit is tightening how you communicate prices and offers to customers. Clear quotes, written scopes, and transparent pricing structures help prevent disputes and reduce the risk that pricing practices are viewed as misleading or unfair in the market. For a simple example of customer-facing transparency done well, see how a residential garage door specialist presents repair and replacement options with clear calls to request estimates and service.
For Jamaican businesses, the principle is the same whether you sell B2C or B2B: the clearer your terms and the more consistent your quoting process, the less room there is for allegations of unfair pricing conduct or discriminatory treatment.
What to do if you receive a complaint or regulator inquiry
A complaint from a competitor, customer, or disgruntled former employee can trigger inquiries. How you respond in the first 24 to 72 hours matters.
Start by preserving relevant documents and communications. Do not “clean up” files or delete messages. That can create separate legal risk and can severely damage credibility.
Next, centralise communications. Designate one internal point of contact (often legal or compliance) so responses are consistent, accurate, and appropriately scoped.
Finally, seek legal advice early, particularly if the issue touches competitor communications, tender conduct, or contract clauses that restrict trade. Early advice can help you respond efficiently, protect legitimate confidentiality, and address the substance without unnecessary escalation.
When to involve competition counsel (before problems start)
Competition issues are easier, cheaper, and less disruptive to manage before a contract is signed or a tender is submitted. Consider getting advice when:
You are considering exclusivity, restrictive rebates, or long duration supply restrictions
You are acquiring a competitor or entering a joint venture in a concentrated market
Your team participates frequently in trade associations
You are preparing bids in a market where the same players repeatedly compete
You have significant market share and are planning a major pricing or bundling strategy
Many businesses treat this as a one-off legal review. In reality, the best protection is a repeatable review process that business teams can use confidently.
Building a defensible compliance posture in Jamaica
Competition law risk is not theoretical. It shows up in bids, emails, discount programmes, distributor negotiations, and casual conversations between “friendly rivals.” The most resilient businesses are the ones that document independent decision-making, train staff on red flags, and review contracts that shape market access.
If you need help designing or stress-testing a competition compliance approach for Jamaica, work with counsel who understands both the statute and how Jamaican markets operate in practice. As a leading international law firm in Jamaica, Henlin Gibson Henlin advises businesses on competition law and policy, compliance and risk, and dispute resolution where competition issues intersect with commercial litigation.