Over recent years traders have complained about the refusal of
some key suppliers to sell stock to market traders. Apparently the suppliers
have been concerned about backlash from their other retailers if market traders
undercut the retail price. This problem has been mentioned as one of the
reasons for our clothing traders selling essentially similar ranges. Traders
claim they would be happy to sell more mainstream brands, if suppliers would
supply.
The problem has been the subject of discussion at QVM management
level and a solution has not been identified, but maybe the ACCC is going to
assist us. Recent investigations and court action by the ACCC have focused on
price maintenance and the refusal of some suppliers to provide goods to cut
price online operators. To quote an ACCC representative - “We do have
investigations underway. We’re looking at online businesses that are being held
back through a variety of means, not just price maintenance but also refusal to
supply."
We believe this action by the ACCC could have implications for QVM
traders. If you have contemplated approaching a supplier but have been
concerned about being refused as a
"cut price" retailer, now might be the time to approach them
again. The Government is obviously keen to stamp out any practice that limits a
retailer’s right to buy and sell in a free market. If you do experience such a
refusal, it looks like the ACCC would like to know about it.
