ACCC accuses online supplier of resale price maintenance

The Australian Competition and Consumer Commission has taken action against yet another company allegedly engaging in illegal price maintenance of online sellers, just days after chairman Rod Sims warned the watchdog is currently investigating a number of similar cases.

The proceedings against Eternal Beauty Products also comes after a number of online retailers revealed to SmartCompany that they had been pressured by their suppliers to either change their pricing or stop selling certain products altogether.

This isn’t the first time the ACCC has taken action on this topic. Last year it hit an aquarium parts supplier for placing pressure on retailers to change prices.

The ACCC said yesterday cosmetics supplier Eternal Beauty, and its director Penny Rider, had engaged in resale price maintenance by allgedly pressuring two retailers not to sell products at certain prices less than those specified by the company.

As a result, the company was alleged to have broken the Competition and Consumer Act, with Rider willingly a part of the actions.

Rider was contacted this morning by SmartCompany, but said she was unable to comment as the matter is being prepared for the court.  

The ACCC is now seeking a number of declarations and punishments, including declarations that Eternal Beauty and Rider engaged in resale price maintenance.

The watchdog also wants an injunction to prevent similar action from occurring in the future, a court order to make the company send letters to all its retailers regarding this conduct and the implementation of a trade practices compliance program. 

The ACCC is also seeking penalties and costs. The case is set to be heard after a scheduling conference in March.

The action comes after Sims told SmartCompany last month the watchdog is currently investigating cases where suppliers have unlawfully put pressure on retailers to lower prices.

“We do have investigations underway. We’re looking at online businesses that are being held back through a variety of means, not just prince maintenance but also refusal to supply,” he said at the time.