A sports eyewear supplier has admitted to restricting online retailers from selling its ski goggles, motorcross goggles and sunglasses below specified prices.
The Australian Competition and Consumer Commission (ACCC) has accepted court enforceable understandings from Dragon Alliance South Pacific after it broke the law by engaging in resale price maintenance.
Resale price maintenance occurs when suppliers prevent independent retailers from advertising or selling products below a specified price.
ACCC chairman Graeme Samuel said what has occurred is not acceptable or legal for a business to restrict an online retailer from discounting and providing consumers a better deal.
"The law protecting the freedom of independent retailers to determine the prices at which they both advertise and sell applies regardless of whether the retailer operates out of a store or on the internet."
Between August 2009 and May 2010 Dragon sent a copy of its online trading terms to four retailers, which stated online retailers were not to sell Dragon products below the recommended retail price.
As part of its court-enforceable undertakings to the ACCC, Dragon will send a letter to each online trader highlighting the concerns raised, inform them oof the corrected terms of the agreement and replace the offending agreement with one that allows online retailers to set the minimum price. It will also establish and implement trade practices compliance training for its staff.