ACCC allows David Jones to offer broader range of discounts to customers

18 December 2003

The Australian Competition and Consumer Commission has granted authorisation* to allow concession businesses operating within David Jones to participate in promotions such as storewide or department-wide discounts, ACCC Deputy Chair, Ms Louise Sylvan, said today.

"This authorisation allows consumers to take advantage of the lower prices offered by concession businesses located within David Jones stores that elect to participate in promotions", Ms Sylvan said. "This is good news for consumers, particularly as we head towards the post-Christmas sales".

Concession businesses are 'stores within stores' that display and sell particular brands. These businesses set prices, hire staff and sell products independently of David Jones.

Examples of concession businesses currently operating within David Jones stores include David Lawrence, Esprit, Table Eight and Sheridan.

"This authorisation allows David Jones to include concession businesses in its promotions. Without authorisation, if a David Jones promotion such as storewide discounts were to include concession businesses, it could raise concerns under the Trade Practices Act 1974. The ACCC considers that allowing David Jones to include concession businesses in its promotions is likely to provide consumers with a broader range of benefits such as discounts or special offers".

Individual concession businesses may still choose not to participate in any promotions.  However, if they choose to participate they will be immune from legal action under the Act for the proposed conduct.

David Jones is currently protected by an interim authorisation that allows it to include concession businesses in its promotions until the ACCC's decision takes effect.

*The ACCC has the function, through the authorisation process, of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit.

Release number: 
MR 277/03
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