Posted by Elizabeth Gore-Jones
on 5 December 2023
On 1 December 2023, the ACCC has reported that penalties totaling $15 million have been ordered against power tool supplier Techtronic for engaging in resale price maintenance.
Techtronic did the following:
1. Entered into agreements with retailers and dealers stopping them from selling products below a specified minimum price;
2. Enforcing the requirement not to sell below that specified minimum price;
3. Withholding supply from dealers who did sell below the specified minimum price.
Many suppliers are not aware of resale price maintenance prohibitions.
The prohibitions are in place to protect consumers and to encourage competition.
If you are a franchisor seeking legal guidance on this matter, our experienced team at The Franchise & Business Lawyers is at your service.
Contact us here for assistance.
