The Australian Competition & Consumer Commission has gone after Brilliant Lighting for price fixing, after the Melbourne based business, which is a major supplier to Bunnings and last year JB Hi Fi admitted that they had engineered a marketing campaign to try and fix prices across a network of 42 retailers.
The business that sells home automation products, fans and lighting accepted a court-enforceable undertaking after they were dubbed in after a buyer at a retailer gave a copy of the mailing to a competitor.
In late September 2022, Brilliant Lighting wrote to 42 retailers and distributors attaching a price list for 116 Brilliant Lighting products. Brilliant Lighting informed them that they should not display headline prices on their websites below certain prices.
It informed retailers and distributors that the right to distribute their products was based on adhering to these prices.
Last year Brilliant Lighting that is owned by Norman Levin who was Donald Trumps Executive Vice President at his New York property operation 1983-1991 appointed a new marketing, Director.
The ACCC said that under Australian competition law, it is illegal for suppliers to prevent, or attempt to prevent, resellers from advertising or selling goods or services below a specified minimum price. This conduct is known as resale price maintenance.
“Resale price maintenance is illegal because it can stop retailers from competing on price, which means consumers pay more for goods and services. This is particularly problematic at a time when many Australians are facing increased cost of living pressures,” ACCC Acting Chair Mick Keogh said.
“Businesses need to be aware that the ACCC takes resale price maintenance very seriously. Suppliers cannot maintain price premiums by setting minimum prices. Nor should they bow to pressure from resellers to impose minimum prices on competing resellers, particularly, those with lower-cost online business models.”
In the court enforceable undertaking accepted by the ACCC, Brilliant Lighting has committed to sending corrective notices to all affected retailers and distributors, establishing a compliance program, and not to enforce minimum resale prices.
