ACM campaign: Who sets retail prices in stores? Retailers, not suppliers!
Retailers must be free to set their own retail prices. Suppliers can only suggest recommended retail prices. This is the core message of the campaign ‘Who sets the price?’ (in Dutch: ‘Wie bepaalt de prijs?’), organized by the Netherlands Authority for Consumers and Markets (ACM). Retailers are able to check on ACM’s website whether the practices of suppliers are acceptable. In that context, ACM has drawn up a sample letter that retailers can send to suppliers.
In its campaign, ACM also warns various suppliers that they possibly exert undue influence over the retailers’ prices, for example, businesses that sell bath and shower products or smart sports devices. On the basis of reports filed with ACM, such businesses will receive a warning. ACM will pay close attention to any reports of non-compliance among such businesses. If a business ignores the rules again, they will risk a fine of up to 900,000 euros or 10% of its turnover.
Promo deals
Over the next few months, this campaign and the new sample letter can come in handy for retailers. That is because, in this coming period, many promo deals are planned, starting with ‘Black Friday’ all the way until Christmas. In times like these especially, it is important that retailers are able to set their own prices. Suppliers can never ask retailers to raise their retail prices. This means that they cannot prohibit discounts either.
Recommended retail price check
Suppliers can only suggest non-binding recommended retail prices. If suppliers also pressure retailers to charge these recommended prices in their stores, such practices constitute a serious violation. Pressure can also be exerted by not delivering any products. Phone calls and text messages in which retailers are strongly urged to stick to the recommended retail prices are not allowed either. On ACM’s website, retailers can do the ‘recommended retail price check’ (in Dutch) to see if rules are violated.