ACCC proposes to revoke Football Federation Victoria uniform arrangements
The Australian Competition and Consumer Commission has issued a draft notice proposing to revoke an exclusive dealing notification* lodged by the Football Federation Victoria.
"The ACCC is proposing to remove the immunity for conduct associated with the FFV's apparel licensing program," ACCC Chairman, Mr Graeme Samuel, said today.
The FFV governs, administers and regulates football in Victoria. The FFV was formally known as the Victorian Soccer Federation, changing its name in 2005. The FFV lodged the notification in respect of its requirement that the 450 plus football clubs competing in its various competitions only use apparel (uniforms) manufactured by a restricted list of third party suppliers licensed by the FFV.
"The ACCC recognises that the licensing program generates certain benefits, primarily in the form of generating revenue which may be available to promote and develop the sport.
"However, on the basis of the information before it, the ACCC is not satisfied that these benefits outweigh the likely detriment generated by the program.
"In particular, the licensing program increases the cost of uniforms to clubs and restricts their freedom to choose who they buy uniforms from," Mr Samuel said.
Clubs are also required to replace uniforms purchased from FFV licensed suppliers within 12 months if the supplier's license is not renewed. This imposes significant additional costs on affected clubs, particularly those in lower and junior grade competitions who may be required to replace perfectly good uniforms unnecessarily.
The ACCC accepts the need for sporting associations such as the FFV, with many junior and non professional senior competitions, to raise much of the funding to finance their activities from their member clubs and players. However, there are other means of raising such funds that are more efficient, transparent and less costly than this particular licensing program.
Mr Samuel said the draft notice does not indicate that the ACCC considers all such programs are detrimental.
"Revenue raising schemes that do not result in comparatively higher prices, restricted consumer choice and the unnecessary replacement of uniforms, particularly for junior and non professional competitions, are less likely to raise the same concerns."
The ACCC will now seek interested party submissions and provide interested parties with an opportunity to request a conference prior to it making a final decision.
The FFV also lodged a notification in respect of its match day ball licensing program. The ACCC does not proposed to take any further action in respect of this notification at this time.
More information regarding the notification and a copy of the draft notice are available on the ACCC's website, by following the links to 'Public registers', 'Authorisations and notifications registers' and 'Exclusive dealing notifications register'.
* Parties may obtain immunity from court action in respect of third line forcing conduct by lodging an exclusive dealing notification with the ACCC. Immunity is conferred automatically two weeks after the notification is validly lodged. The ACCC may issue a draft notice proposing to revoke the notification if it is satisfied that the likely benefit from the conduct or proposed conduct will not outweigh the likely detriment from the conduct or proposed conduct.
