Planet Earth ends resale price maintenance

Planet Earth, a Sydney-based manufacturer, wholesaler and retailer of t-shirts will stop attempting to force one of its retailers to maintain prices for its goods after Australian Competition and Consumer Commission intervention.

Planet Earth Design Concepts Pty Ltd has given the ACCC court-enforceable undertakings after the ACCC alleged it was engaged in resale price maintenance.

"Resale price maintenance can occur when a supplier withholds, or threatens to withhold, its products because the buyer is selling the products at a price lower than that specified by the supplier", ACCC Chairman, Professor Allan Fels, said today.

"Sellers are entitled to sell at whatever prices they see fit.

"Suppliers may only recommend prices, or they can specify a maximum price. They cannot set a minimum price".

The ACCC alleged that Planet Earth had advised a customer, who sold the products at markets, that it had received complaints from its party plan consultants that her prices were too low and were affecting their business. Planet Earth told the customer that she could no longer be supplied with Planet Earth's products unless she sold them at the same prices as the prices charged through the party plan.

Planet Earth has undertaken to the ACCC that it will:

• not engage in the practice of resale price maintenance, nor withhold supply from the complainant without first informing her in writing of the reasons for the decision;
• send letters enclosing a copy of the undertaking to each person to whom it currently supplies products;
• and implement a trade practices compliance program and complaints handling system.

"This outcome demonstrates the ACCC's commitment to protecting small businesses from unfair practices by larger companies with which they deal", Professor Fels said.