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Wholesaler caught price fixing
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Wholesaler caught price fixing
Posted Date: 01/02/2012
By Inside Retail


Fresh court proceedings lodged by the ACCC pose a timely reminder to wholesalers that they cannot force retailers to set final consumer prices.

The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court in Melbourne against Eternal Beauty Products Pty Ltd and its director, Penny Rider.

Eternal Beauty is a supplier of women's beauty products and is the sole Australian distributor of Eyesential (eye cream) and The Lift (face cream).

The ACCC alleges that Eternal Beauty engaged in resale price maintenance by inducing or attempting to induce two retailers not to sell products online at prices less than those specified by Eternal Beauty.

Eternal Beauty is alleged to have contravened section 48 of the Competition and Consumer Act 2010. Rider is alleged to have been directly or indirectly knowingly concerned in the contraventions by Eternal Beauty.

The ACCC is seeking:
  • Declarations that Eternal Beauty and Rider engaged in resale price maintenance in contravention of the Competition and Consumer Act 2010.
  • An injunction to restrain Eternal Beauty and Rider from engaging in resale price maintenance in the future.
  • A court order that Eternal Beauty send letters to all of its retailers regarding the conduct.
  • The implementation of a trade practices compliance program.
  • Penalties.
  • Costs.
The matter has been filed in the Federal Court of Australia's Fast Track List in Melbourne. A scheduling conference is listed for March 20 before Justice Murphy.
Comments:

Thursday, February 02, 2012 by Sav
I just looked at Eternal Beauty Products website and they are retailing this product to consumers. According to the acticle above they are the sole distributor in Australia. Maybe it is just me, but if my distributors would sell direct, I just wouldn't sell that product. It is just too hard.
Wednesday, February 01, 2012 by Gw
I think the problem with Eternal Beauty Products is, that they are a distributor and sign up retailers to sell their products. On its website however retails to consumers and directly competes against its retailers. If any retailer dares to sell it for less than Eternal Beauty Products they cut them off and threaten them with legal action. I just moved on and sell products from suppliers who are keen. I'm glad someone has taken the effort to raise this issue with this supplier. Gary
Wednesday, February 01, 2012 by erp
Don't Pandora also?
Wednesday, February 01, 2012 by Robert Stockdill
There's nothing wrong with setting a fixed price to retailer - the issue is dictating the price at which retailers sell to consumers. Apple doesn't discount to retailers so price matching is usually for competitive reasons. Having said that... it would be interesting to see the outcome if the ACCC ever managed to investigate fully... - Ed
Wednesday, February 01, 2012 by Andysolo
Correct me if I am wrong, but don't Apple do this too?

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