Oceanic Diving Australia Pty Ltd, a wholesaler of scuba diving related equipment and accessories, has admitted engaging in resale price maintenance for some of its products.
It has offered the Australian Competition and Consumer Commission court enforceable undertakings.
"In August 2008 Oceanic emailed more than 60 dealers advising them that they could not advertise in the print media or on the internet certain Oceanic goods below specified prices," ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC was concerned that the conduct amounted to resale price maintenance, in contravention of section 48 of the Trade Practices Act 1974.
"Resale price maintenance can occur where a supplier induces or attempts to induce its resellers not to advertise or sell its products at a price less than a price specified by the supplier.
"It can also occur where a supplier uses in relation to any product that it supplies to a person a statement of price that is likely to be understood by that person as the price below which that product is not to be advertised or sold by that person."
After the ACCC raised its concern with Oceanic, the company retracted its pricing policy and advised its dealers that they could advertise Oceanic's products at whatever price they choose.
The ACCC has accepted court-enforceable undertakings from Oceanic that it will:
- not induce or attempt to induce a reseller from advertising or selling Oceanic products at a price less than a price specified by Oceanic
- implement a trade practices law compliance program for three years, and
- arrange for an article to be published in a scuba diving publication (likely to be in the March edition of Divelog Australasia) informing readers about its contravention and the prohibition of resale price maintenance.
"Wholesalers must understand that they cannot prevent or try to prevent retailers from advertising or selling their products below particular prices," Mr Samuel said. "This prohibition is aimed at enabling retailers to compete on price so that consumers can purchase goods at lower prices."
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