The ACCC is continuing to crackdown on suppliers who engage in resale price maintenance. Two companies, Edwards Essences and Eternal Beauty, have been the latest to come under fire for telling their retailers not to sell products below a recommended retail price.
The Competition and Consumer Act aims to ensure that competition stays alive in the marketplace – so consumers can shop around and find the best deal. The resale price maintenance provisions of the Act require that businesses must be free to discount the prices of their goods, without pressure from suppliers to come within a certain price range.
ACCC chairman Rod Sims commented, “The ACCC takes seriously any attempts by suppliers to prevent discounting of their products, which affects the fundamental right of traders to compete for business.”
So be warned! If you are supplying to others – don’t ever pressure them into a minimum floor on their pricing. And if you are on the other side, and are feeling the pressure of a supplier, bear in mind that your supplier might just be acting illegally.
Drop us a line if either of these situations sound like you, so we can give you a hand!
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