Retailers of scuba diving equipment have had their trading terms clarified after intervention by the Australian Competition and Consumer Commission.
The ACCC was concerned that employees and sales agents of Scubapro Uwatec Australia Pty Ltd, a manufacturer and wholesaler of scuba diving equipment, made statements to dealers not to discount the products by more than 10 to 15 per cent below the recommended retail price.
Such statements would contravene the resale price maintenance provisions of the Trade Practices Act 1974.
After ACCC contact, Scubapro maintained that it does not have a policy on discounting. It admitted, however, that from time to time, Scubapro representatives conveyed to Scubapro dealers that the "normal discount range" for Scubapro products is ten to fifteen per cent below the recommended retail price.
Scubapro acknowledged the ACCC's concerns and specifically acknowledged that any attempt to induce dealers not to discount products below a specified maximum discount price or discount range would constitute resale price maintenance.
Scubapro also provided the ACCC with court enforceable undertakings that it will:
not induce or attempt to induce a reseller from advertising or selling Scubapro products at a price less than a price specified by Scubapro
implement a trade practices compliance program for three years, and
write to all Scubapro dealers informing them that Scubapro does not have a policy on discounting and there is no obligation to follow the recommended retail price.
"The ACCC takes breaches of the resale price maintenance provisions of the Act seriously," ACCC chairman Graeme Samuel said today. "Resale price maintenance prevents retailers from selling their products below a particular price and hinders consumers shopping around from getting the best possible price for goods. This undertaking should put other industry participants on notice to ensure that their conduct complies with the Act."
