cover quote definition
cover quote is defined in the consent agreement as: “a cover quote is exchanged by firms that agreed among themselves about which firm should win a tender and which firm(s) should lose a tender. A cover quote is a distinguished quotation (“a façade”), which is usually a higher price that is submitted by a firm that does not wish to win a tender. It is meant to give a false impression that the firm that eventually wins a tender is cheaper.” [11] Clause 2.3.1 provides that Eldan and Precision were party to an agreement, alternatively a concerted practice to directly or indirectly fix prices, divide markets by allocating customers to each other, and tender collusively in respect of the provision of auto repair services. [12] Clause 2.3.2 records that the Commission’s investigation revealed that ▇▇▇▇▇ and Precision:
i. coordinated their collusive arrangement through Vehicle Accident Assessment Centre (“VAAC”) which renders vehicle assessment services to customers;2
ii. discussed how to collaborate when providing cover quotes to clients;3 and
iii. discussed prices for auto body repair services including panel beating and spray painting.4
iv. Further, it records that there was regular contact between the employees of ▇▇▇▇▇ and Precision so that they could request cover quotes from each other. [13] Clause 3 provides that “▇▇▇▇▇ admits that it engaged in the conduct set out in clause 2.3.1 to 2.3.4 above in contravention of section 4(1)(b)(ii)” (emphasis added). ▇▇▇▇▇ also agreed to pay an administrative penalty in the amount of R750 000.00.