Minimum Advertising Prices on Electronics struck down by ACCC

In an article reported today in the SmartCompany.com.au newsletter, the ACCC blocked a consortium of consumer electronics retailers from being able to set a minimum advertising price on a number of goods.

Narta International, a buying group representing several companies including David Jones, Myer and JB Hi-Fi, originally applied for the pricing proposal last year. This week the Australian Competition and Consumer Commission shut the proposal down.

The application would have allowed Narta to set a minimum advertising price on several exclusive products, or BEKO-branded products, which are collectively acquired by Narta members. These products include televisions, cameras, white goods and kitchen appliances.

"This wasn't an application to suggest it wanted to fix pricing on everything, only this specific range," ACCC Deputy Chair Schaper says.

"Our problem was that, generally, fixed prices just aren't good for consumers."

Additionally, under the Competition and Consumer Act 2010 (CTH), anti-competitive conduct can be subject to penalties under the Australian Consumer Code.

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