Resale price maintenance occurs when a supplier pressures a retailer not to sell products below a certain price. Resale price maintenance can cause significant harm to competition and lead to higher prices for consumers.
The recent Italiatech and TMO outcomes serve as a reminder that when faced with strong competitive pressures it is important that retailers have the freedom to set their own prices, including offering discounts.
Bicycling Trade wrote:Italiatech had engaged in resale price maintenance by inducing or attempting to induce three Australian retailers who sold its helmets and/or saddles not to sell those products below the recommended resale price (RRP), and
TMO had engaged in resale price maintenance by inducing or attempting to induce three Australian retailers not to sell bicycle parts and accessories below the price specified by TMO.
“It is important that retailers have the freedom to set their own prices, including offering discounts, when they are faced with strong competitive pressures,” ACCC Chairman Rod Sims said.
source: Bicycling Trade
