ACCC Prohibits Minimum Advertised Prices On Dewalt Power Tools
The ACCC has rejected Stanley Black & Decker’s proposal to set a minimum advertised price for Dewalt power tools, accessories and attachments, concluding that the detriments to the public would outweigh any benefits.
“Stanley Black & Decker’s proposal to set minimum prices related only to prices displayed in advertisements, so consumers would, in theory, have been able to negotiate for lower prices in store. But consumers would also have a harder time identifying which retailers were prepared to offer the best price,” said ACCC Commissioner Stephen Ridgeway.
In addition, consumers would have lost the bargaining power, as they would not be able to ask one retailer to match another’s advertised price.
“In all likelihood, consumers would have, overall, ended up paying more for Dewalt branded power tools,” Ridgeway said. “This may also have led to retailers of other power tool brands increasing their prices, again to the detriment of consumers.”
The ACCC has stated it will investigate claims that other wholesalers in the power tool market are attempting to set minimum prices for products.
“We remind businesses that any attempt to set minimum prices without lodging a notification with the ACCC is a serious breach of the Competition and Consumer Act,” Ridgeway said.