On this page
What suppliers must not do
It's illegal for suppliers to impose minimum prices for the resale of their goods or services.
For example, suppliers must not:
- set minimum prices in formal policies or agreements
- offer retailers a discount if they sell at or above a minimum price
- refuse to supply retailers that sell below a minimum price
- punish retailers for selling below a set price, for example, by taking away a discount or sending a warning.
This is known as resale price maintenance.
Resale price maintenance is illegal because it stops retailers competing on price, increasing what consumers pay.
It's also illegal for resellers to ask suppliers to stop competitors selling below a minimum price.
Example of resale price maintenance
Scenario
A jewellery wholesaler gives retailers a list of recommended prices.
It offers a 10% discount to retailers who pay their accounts on time, but the discount isn't available if the retailer sells the jewellery for less than the recommended prices.
Relevant factors
The discount is taken away from the retailer if they sell the jewellery for less than the price recommended by the wholesaler. This is resale price maintenance and is illegal.
What suppliers are allowed to do
- Suppliers canrecommend appropriate prices, for example, by providing a recommended resale price (RRP) list.
- Suppliers can set amaximumretail price.
- Suppliers can refuse to supply resellers that engage inloss leader selling.
Seeking an exemption
A supplier wanting to engage in resale price maintenance can seek an exemption from the ACCC by:
- applying for anauthorisation, or
- lodging anotification.
Theseexemption processes give protection from legal action. The supplier needs to show that the behaviour is in the public interest.
If lodging a notification, read our Resale price maintenance notification guidelines for more information.
Register of resale price maintenance notifications
Notifications of resale price maintenance submitted to the ACCC are listed on theresale price maintenance notifications register.
Each entry includes the status and outcome.
Report resale price maintenance
If you are a business and have a problem with a supplier engaging in resale price maintenance, report it to the ACCC.
See also
Resale price maintenance notification guidelines
Resale price maintenance notifications register
Small business education program
Small business and the Competition and Consumer Act
Competition and Consumer Act 2010
- Section 48 Resale price maintenance
- Section 96 Acts constituting engaging in resale price maintenance
- Section 96A Resale price maintenance in relation to services
- Section 97 Recommended prices
- Section 98 Withholding the supply of goods
- Section 99 Statements as to the minimum price of goods
- Section 100 Evidentiary provisions.