The Australian Competition and Consumer Commission has issued a determination denying authorisation to Narta International Pty Ltd for proposed arrangements allowing it to set a minimum advertising price on a range of consumer electrical goods.
Narta is a buying group that represents over 30 electrical goods retailers including Betta Electrical, Bing Lee, David Jones, JB Hi-Fi, Myer and Radio Rentals.
Authorisation would have allowed Narta to impose a minimum advertising price on several exclusive model or BEKO branded products that are collectively acquired by Narta members, including televisions, cameras, white goods and kitchen appliances.
“The ACCC has denied authorisation because Narta’s proposed conduct would be likely to result in significant public detriment by reducing competition between retailers and raising both the advertised and selling prices of electrical products,” ACCC Deputy Chair Dr Michael Schaper said.
Allowing Narta to set a minimum advertising price on a broad range of electrical goods may have provided increased choice for consumers on some products but the ACCC considers this benefit is likely to be outweighed by the reduction in competition between retailers from setting minimum advertised prices.
Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC's determination is available at Authorisations register.