61 - Setting prices (and avoiding resale price maintenance)

Resale Price Maintenance in Australia: Why Minimum Pricing Demands Are Illegal (and What to Do)

Melissa Bush explains resale price maintenance (RPM) under Australian competition law, noting suppliers cannot set or enforce a minimum resale or advertised price, threaten suspension of supply, or use conditional rebates or advertising restrictions, and that RPM is a per se prohibition under the Competition and Consumer Act (Section 48). She outlines why RPM harms retail price competition, especially for small retailers, and notes ACCC enforcement and a narrow, rarely used authorisation process. The episode reviews late-2025 ACCC undertakings involving Connected Audio Visual, Golf Imports, and EE Group Australia and highlights the December 2023 Federal Court penalty of $15 million against Techtronic Industries Australia for widespread, enforced RPM. Bush clarifies that recommended retail price is legal only as a non-mandatory suggestion and provides action steps for retailers (review agreements, document pressure, and report to ACCC) and suppliers (audit and remove clauses, notify networks, train staff, and seek legal review).

00:00 Supplier Threat Call

00:34 Why RPM is Illegal

01:17 Episode Roadmap

02:32 RPM Defined Simply

03:43 Per Se Rule Explained

04:10 Why the Law Exists

05:36 ACCC Cases Overview

05:47 Case CAV Dashcams

07:14 Case Golf Imports

08:37 Case EE Group Drones

10:09 Techtronic $15M Penalty

12:16 What RRP Really Means