An eyewear brand's illegal attempts to control its online stockists' price points has resulted in the company coming under fire from the Australian Competition and Consumer Commission (ACCC).
Dragon Alliance South Pacific, which wholesales Dragon branded eyewear including ski googles and sunglasses, admitted to the ACCC it had engaged in resale price maintenance between August 2009 and May 2010.
This involved Dragon sending a copy of its online trading terms to four retailers stating they were not allowed to sell Dragon products below the set recommended retail price.
ACCC chairman Graeme Samuel said it was illegal for a business to restrict an online retailer from discounting or offering consumers "a better deal".
“The law protecting the freedom of independent retailers to determine the prices at which they both advertise and sell applies regardless of whether the retailer operates out of a store or on the internet,” Samuel said.
Dragon has pledged to undertake a series of court-enforceable remedies to its illegal action, including sending a letter to each of the four online retailers highlighting the concerns of the ACCC.
Dragon is also required to update its online trading terms and implement trade practices compliance training for its staff.
Dragon was founded in California in 1993 and the brand currently sells its wares across the US, Europe, Latin America, Japan, Australia and Asia.