Section 1 — Title
This legislation shall be cited as the Fair Competition and Market Integrity Act.
Section 2 — Purpose
The purpose of this Act is to:
- Preserve open and competitive markets within Lilaris.
- Prohibit exploitative practices that distort pricing, access, or supply.
- Establish clear rules and enforcement procedures for maintaining market integrity.
Section 3 — Prohibited Practices
The following commercial behaviors are prohibited within Lilarian jurisdiction:
3.1 — Manipulative Bulk Purchasing
The purchase of goods in bulk is legal and encouraged for legitimate use. However, it is prohibited to engage in bulk acquisition with the intent to eliminate competition or create artificial scarcity.
Examples include:
- Buying out all competing products in order to resell your own at inflated prices.
- Acquiring a competitor’s entire stock to prevent customer access.
3.2 — Price Fixing and Collusion
No individual, group, or registered entity may conspire to fix prices, set minimum prices, or divide market territory in coordination with others.
3.3 — Predatory Undercutting
Intentionally pricing goods below cost in order to drive competitors out of business, with the intention to raise prices later, is strictly prohibited.
3.4 — False or Sham Entities
Creating fake storefronts, alternate identities, or shell corporations to manipulate market perception, inflate demand, or falsify competition is unlawful.
3.5 — Territorial Gatekeeping
Restricting or intimidating lawful vendors from operating in certain regions or biomes without legal authority or DoC sanction constitutes anti-competitive behavior.
Section 4 — Oversight and Enforcement
4.1 — Authority
The Department of Commerce is the sole regulatory and enforcement authority for this Act. It may conduct investigations and audits, summon evidence, and issue rulings.
4.2 — Reporting
Any citizen or producer may report suspected violations. Reports may be anonymous. False reports filed in bad faith may be penalized.
4.3 — Evidence and Investigation
The DoC may request shop logs, sales history, or witness testimony. Failure to cooperate may result in temporary suspension of commercial privileges.
Section 5 — Penalties
Penalties for violations shall be proportionate to the severity of the offense:
- First Offense: Formal warning and mandated correction of conduct.
- Second Offense: Seizure of ill-gotten goods, fines, or temporary loss of RP status.
- Third or Major Offense: Permanent revocation of Registered Producer (RP) status, listing on the Restricted Trade Registry, and disqualification from government contracts.
Section 6 — Appeals and Exceptions
6.1 — Right to Appeal
Any penalized party may appeal to the Secretary of Commerce within seven days of the ruling.
6.2 — Legitimate Bulk Use Exception
Bulk purchasing is permitted and unrestricted when performed for personal use, construction projects, large-scale production, or similar purposes. Only manipulative intent constitutes a violation.
6.3 — Private Contracts
Private or exclusive supply agreements are lawful when disclosed to the DoC and not used to hinder open market access.
Section 7 — Amendments
This Act may be amended by formal motion and approval through the standard legislative procedure. All changes must be archived in the DoC’s public register.