ACCC proposes to say no to minimum price on premium electrical goods

The Australian Competition and Consumer Commission has issued a draft decision proposing to deny authorisation to Narta International Pty Ltd for proposed arrangements that would enable it to set a minimum advertising price on a wide range of electrical goods.

Narta is a buying group of around 30 electrical goods retailers, including David Jones, JB Hi-Fi and Bing Lee. The proposed conduct would ensure that all of its members advertise the same price for particular new release, premium or BEKO branded products that would be available from Narta members, such as televisions, cameras, white goods, espresso machines and ovens.

“The ACCC has concerns that the ability for Narta to set a minimum advertising price on a broad range of electrical goods will reduce competition between retailers and result in higher prices for consumers,” ACCC Chairman Rod Sims said.

“This is particularly a concern for competition with online retailers, which generally do not negotiate their selling prices down from the advertised price like bricks and mortar retailers might do.”

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.