Skins credibility under fire

NATIONAL: Compression garment specialist Skins has been slapped twice by the Australian Competition and Consumer Commission (ACCC). The company will be forced to pay $120,000 for engaging in resale price maintenance and will also publish corrective notices over a series of misleading advertisements.

Skins will issue notices across its website, business magazine B&T and broadcaster SBS for claiming it did not pay sports stars to endorse its brands or provide them with complimentary products.

A court case brought forward by the ACCC revealed the company had 29 sponsorship agreements and provided substantial quantities of products to players representing Cricket Australia, Hockey Australia, Basketball Australia and players for AFL clubs, rugby league and union teams.

Under the agreements, Skins agreed to pay $750,000 and provide over $800,000 worth of products to sporting stars.

In another blow to its credibility, the Sydney-headquartered company will also be forced to provide a letter to its retailers, agents and distributors over a pricing furore involving its South Australian agent Christopher Warhurst.

Warhurst was found to have repeatedly induced an Adelaide retailer not to advertise Skins products at discounted prices. A court ordered Skins to pay $120,000 for its retail price maintenance conduct and Warhurst pay a penalty of $14,000 for his involvement.

Skins has undertaken to the court not to engage in similar conduct in the future.