The Australian Competition and Consumer Commission has granted interim authorisation* for Myer to invite concession businesses operating within Myer and Grace Bros department stores and Megamart stores (Myer Stores) to participate in storewide and category wide discount promotions or bonus Fly Buys points offers run by Myer.
"This interim authorisation allows consumers to take advantage of discounted prices offered by concession businesses who elect to participate in Myer Stores discount promotions in the run up to Christmas and the post Christmas sales", ACCC Chairman, Professor Allan Fels, said today.
Concession businesses are those which license, or rent floor space from Myer. These 'stores within stores' display and sell only their brands and products, and are operated independently of Myer. Prices are set by the concession businesses independently of Myer. Examples of concession businesses currently operating within Myer Stores include Calvin Klein Jeans, Esprit, Sportscraft, Trent Nathan and Royal Doulton.
"Currently any promotional activity run by Myer stores, including promotions where customers are offered fixed percentage discounts or benefits store or category wide, excludes concession businesses. This is because any such agreement between Myer and the concession businesses would be likely to constitute an agreement between competitors on price, which would raise concerns under the Trade Practices Act 1974. This interim authorisation allows Myer to include concession business in its promotional discounts.
"The interim authorisation does not allow any agreement between Myer and the concession businesses to raise prices", Professor Fels said.
Interim authorisation allows the parties to engage in the conduct while the ACCC considers the merits of the substantive application. A decision to grant interim authorisation does not mean that the ACCC will necessarily grant final authorisation.
The interim authorisation does not compel any party to participate in the proposed arrangements, but will provide immunity against prosecution under the Act for the conduct authorised. Individual concession businesses retain sole discretion over whether they chose to participate in discount promotions run by Myer stores.
*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 offsetting public benefits. Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application. The ACCC's decision in relation to interim authorisation should not be taken to be indicative of whether or not final authorisation will be granted by the ACCC. Applications for authorisation (and interim authorisation) are considered on a case by case basis. The onus is on the applicant to demonstrate that there is public benefit arising from the conduct and that the public benefit outweighs any public detriment. Authorisation, once granted, does not compel parties to participate in the proposed arrangements.