Freehills have a nice summary of the legal issues for bricks-and-mortar retailers looking at exclusive licensing and other arrangements to lock out internet competition. See here. My previous comments are here.
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3 Responses to Update on the internet and retailing.
I’m afraid this is all a bit of a joke for people who are already making extensive use of online shopping. I recently tried to buy a spare part and thought I will try a local shop first to give them a chance. The wholesale price they were quoted by the exclusive distributor was more than twice the price I could order it online. How can ACCC have any credibility when this sort of rorting is going on? I feel for the local retailers but they don’t have a hope if they are up against this kind of lock-in.
Michael, how does your story suggest the ACCC lacks credibility? You went to a shop who quoted you a high price so you bought it online instead. Good job Michael being a savvy consumer, but unless I’m missing something there’s no issue here for the ACCC.
The issue is the retailer was quoted a wholesale price twice the price I was able to buy it online. I’m not sure how to put this another way, the shop didn’t even get to put a cent on top and it was already twice the price I could buy it retail from overseas. I’m not sure if there is any barrier to this shop importing directly from other suppliers, BUT why would they continue ordering from a wholesaler who is so patently charging a huge markup on what wholesalers in other countries are charging? It surely doesn’t take a genius to spot the problem.
I’m afraid this is all a bit of a joke for people who are already making extensive use of online shopping. I recently tried to buy a spare part and thought I will try a local shop first to give them a chance. The wholesale price they were quoted by the exclusive distributor was more than twice the price I could order it online. How can ACCC have any credibility when this sort of rorting is going on? I feel for the local retailers but they don’t have a hope if they are up against this kind of lock-in.
Michael, how does your story suggest the ACCC lacks credibility? You went to a shop who quoted you a high price so you bought it online instead. Good job Michael being a savvy consumer, but unless I’m missing something there’s no issue here for the ACCC.
The issue is the retailer was quoted a wholesale price twice the price I was able to buy it online. I’m not sure how to put this another way, the shop didn’t even get to put a cent on top and it was already twice the price I could buy it retail from overseas. I’m not sure if there is any barrier to this shop importing directly from other suppliers, BUT why would they continue ordering from a wholesaler who is so patently charging a huge markup on what wholesalers in other countries are charging? It surely doesn’t take a genius to spot the problem.