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ACCC Accepts Court Enforceable Undertakings From Sports Eyewear Supplier Engaged in Resale Price Maintenance

Australia (News4us.com) March 14, 2011

ACCC Accepts Court Enforceable Undertakings From Sports Eyewear Supplier Engaged in Resale Price Maintenance

ACCC Accepts Court Enforceable Undertakings From Sports Eyewear Supplier Engaged in Resale Price Maintenance

Dragon Alliance South Pacific Pty Ltd has admitted restricting online retailers from selling Dragon’s ski goggles, motorcross goggles and sunglasses below specified prices.

The ACCC has accepted court enforceable undertakings from Dragon after it admitted breaking the law by engaging in resale price maintenance. Resale price maintenance occurs when suppliers prevent independent retailers from advertising or selling products below a specified price.

Between August 2009 and May 2010 Dragon sent a copy of its online trading terms to four retailers which stated online retailers were not to sell Dragon products below the recommended retail price.

“It is not acceptable or legal for a business to restrict an online retailer from discounting and providing consumers a better deal,” ACCC chairman Graeme Samuel said today.

“The law protecting the freedom of independent retailers to determine the prices at which they both advertise and sell applies regardless of whether the retailer operates out of a store or on the internet.”

Dragon has provided court-enforceable undertakings to the ACCC that it will:

  • not restrict any Australian retailer of Dragon products from setting its own prices for a period of three years
  • send a letter to each online trader:
    • highlighting the concerns raised by the ACCC about the offending online trading agreement
    • replacing the offending agreement with one that allows online retailers to set the minimum price at which they advertise or sell Dragon products
    • informing online retailers of the corrected terms of the agreement, and
  • establish and implement trade practices compliance training for its staff.

The undertaking will be available on the public register on the ACCC website at http://www.accc.gov.au/content/index.phtml?itemId=974709


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