Distributor faces ACCC action over resale price maintenance
baby product distributor, valiant enterprises, has agreed to court-enforceable undertakings after it admitted to the australian competition and consumer commission (accc) that it engaged in resale price maintenance.
in july last year, valiant enterprises tried to persuade an online retailer to not advertise the angelcare ac1100 for sale at a price less than it had specified. this is prohibited by section 48 of the competition and consumer act 2010.
“businesses must be free to set their own prices for the products they sell,” says accc chairman rod sims.
“this freedom encourages competition in the marketplace and benefits consumers who shop around for the best price. the accc will continue to pursue suppliers who attempt to pressure businesses in this manner.”
valiant enterprises has agreed to not engage in resale price maintenance, write to all retailer clients who purchased products in the 2011/2012 financial year advising them of the accc’s concerns and informing them they are free to set the minimum price at which they advertise or sell their products, place a corrective notice on its website, and implement a compliance program.
