The Australian Competition and Consumer Commission has issued a notice revoking Football Queensland’s third line forcing notification which covers a program requiring member clubs to purchase equipment and apparel only from licensed suppliers. This includes tracksuits, playing shirts, shorts, socks and soccer balls.
Football Queensland is the governing body for football (soccer) in Queensland.
"The ACCC considers that the Teamwear Program has reduced competition in the supply of football apparel and equipment in Queensland and increased administrative and supplier costs, resulting in higher prices than would otherwise be the case," ACCC chairman Rod Sims said.
"Under the Teamwear Program, clubs are unable to access other suppliers, particularly smaller regional or locally based suppliers, manufacturers and online retailers."
The ACCC has received a number of submissions from football clubs stating that the Teamwear Program prevents them from buying similar quality apparel from non-licensed suppliers at lower prices. Some suppliers have also submitted that the upfront licensing fees make it uneconomic for them to supply apparel to Queensland football clubs.
The ACCC recognises that the Teamwear Program delivers benefits, primarily revenue for Football Queensland to use in the promotion and development of football, potentially increasing participation and promoting greater fitness and recreation levels. However, the ACCC does not consider that these benefits outweigh the public detriments.
The effect of this notice is to remove the protection from legal action that is afforded by the notification.
Notification provides legal protection for conduct that might otherwise be at risk of breaching the exclusive dealing provisions of the Competition and Consumer Act 2010. Once lodged, protection for the notified conduct begins automatically, or in the case of third line forcing, after 14 days. The ACCC may revoke a third line forcing notification where it is satisfied that the likely benefit to the public from the conduct will not outweigh the likely detriment.
More information regarding Football Queensland’s notification and copies of the notice are available from the ACCC's website www.accc.gov.au/ExclusiveDealingRegister.