Peter McInnes, the exclusive distributor of KitchenAid stand mixers and other kitchenware products, has admitted to the Australian Competition and Consumer Commission (ACCC) that it engaged in resale price maintenance.
According to the ACCC, Peter McInnes was involved in resale price maintenance four times between November 2011 and June 2013 by inducing or attempting to induce retailers to sell KitchenAid stand mixers at the recommended retail price (RRP).
This involved a rebate to retailers who had priced the mixers at the previous RRP after a reduction in the mixers’ RRP to cover the loss in margin and criticising two retailers whose promotions advertised only the discounted price of the mixers.
“The competitive process relies upon retailers being free to discount their goods and compete with each other on price,” says Sarah Court, ACCC commissioner. “If a supplier tries to force or induce a retailer to stick to a particular price, it concerns the ACCC as consumers benefit from being able to shop around for the best deal.”
Peter McInnes has agreed to a court enforceable undertaking that it will refrain from engaging in price resale maintenance for two years, write to KitchenAid customers telling them they are free to set their own minimum prices for products supplied by Peter McInnes, advise its employees to refrain from criticising customers that discount below the RRP and implement and maintain a compliance program.
