Janome stitches itself up

Janome Australia Pty Ltd, which wholesales Janome sewing and quilting machines, overlockers and associated products in Australia, and its managing director, Mr Toshiya Takayasu, have admitted engaging in resale price maintenance.

Resale price maintenance involves suppliers, manufacturers or wholesalers specifying a minimum price below which goods or services may not be resold or advertised.

Between February and April 2008 Janome sought to impose a Minimum Advertised Price Policy on its retailers. The policy, devised by Mr Takayasu, came into effect on 1 April 2008 and prohibited the retailers from advertising products at any price lower than the price set by Janome.

Janome suspended the policy in May 2008 after the Australian Competition and Consumer Commission raised concerns that Janome may have breached the resale price maintenance section of the Trade Practices Act 1974. 

Mr Takayasu and Janome offered the ACCC court enforceable undertakings. Janome admitted that it contravened the Act and has undertaken not to engage in the similar conduct in the future.  Mr Takayasu admitted that by his conduct he was involved in Janome's breach.  He has undertaken not to engage in the similar conduct in the future.

Janome will also:

• implement and maintain a trade practices law compliance program for three years
• write to all its retailers advising them of its conduct and that it has breached the Act
• publish a corrective notice on its website, and
• publish a full page corrective notice in Australian Stitches and Embroidery and Cross Stitch magazines.

"The practice of resale price maintenance on advertised prices damages consumers because it prevents competition on prices," Acting ACCC Chairman, Mr Peter Kell, said. "Wholesalers must understand that they cannot constrain the freedom of retailers to advertise and sell their products at prices determined by the retailers."