TYT MD-2017 Price fixing

TYT MD-2017 Price fixing

Price fixing and the TYT MD-2017 Is this legal in the UK?

 A post on Trilogy’s website suggests that TYT may be engaging in resale price maintenance with radio dealers in the UK and possibly worldwide. Is this legal in the UK? A review of online documentation would suggest not.

Resale price maintenance (RPM) is defined by the Competition and Markets Authority: “RPM is where a supplier and a retailer agree that the retailer will not resell the supplier’s products below a specified price.”

TYT MD-2017 Price fixing
Screenshot of the webpage on Trilogy’s website
In communication assumed to be directly from TYT, price fixing is openly discussed:
“Regular price is 110(simple)/118usd(GPS) 
But please note that our MOQ is 50pcs ,and retailer price should not less than 219/229usdThis also reveals that the actual price the dealers are buying the radio at is only $110, and currently, the only dealer selling the radio in the UK is reselling them for £199.99!The webpage suggests that TYT may be deliberately limiting the market to artificially maintain a high cost for its radio, not only by fixing the price, but also by only allowing a single retailer in the country to sell the radio.In a guidance document published by the Competition and Markets Authority, the following advice is given to retailers:
“You may still be involved in an unlawful RPM agreement where a supplier:

  • imposes restrictions on how far you can discount its product
  • prevents or limits your ability to advertise lower prices online (so-called ‘minimum advertised price policies’)
  • has linked a resale price for the product to what other retailers are selling it for”

They also state that “Suppliers must not take any action that interferes with a retailer’s ability to set their own price of the supplier’s goods online or through other channels. Any attempt to do so is likely to be illegal.”

 

Screenshot showing that TYT will not sell the radio to dealers who do not agree to fix the price.

 

Back in May 2016, the CMA fined a supplier of commercial refrigeration equipment over £2 million in a case where the supplier had set a minimum advertised price and threatened to stop the supply if dealers did not follow it.

Other websites also suggest that resale price maintenance is also illegal in the USA. If you are a citizen of the USA or any other country where RPM is illegal, and are affected by this RPM, you may wish to report it to the relevant authorities so that a free market can be established and consumers like yourself can benefit from competition in prices.

See this page for more information on resale price maintenance in the UK.

Do you think this constitutes illegal resale price maintenance?

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