BioCare Price Fixing OFT don't mind !

Stephen7372 · 2 Sep 2008 at 17:57

Recently I was sent this email :-

Price went up generally by 50%

Dear Stephen

BioCare Supplements

We thought you might like to know that all BioCare products sold on the internet have to be sold at Recommended Retail Price or above.

We've decided therefore, not only to keep the price of all BioCare products to the minimum, but also to REMOVE ALL DELIVERY CHARGES. We think that must make our sites the cheapest source of BioCare products on the internet.

You can find our whole range of BioCare products here.

With kind regards

Vanderbell Health

phoned Vanderbell and they confirmed this sadly didn't record the phone call.

So I contacted the OFT they said :-

Dear Mr Hammond

Your complaint against Biocare vitamin products: Alleged resale price maintenance

Thank you for your email of 8 August in which you have drawn to our attention evidence which would indicate that Biocare is imposing on retailers a minimum resale price for its products.

Agreements between suppliers and retailers to maintain certain specified or minimum resale prices constitute price fixing. This type of conduct is an infringement of the Chapter I prohibition of the Competition Act 1998.1

In the course of our enquiries we received a copy of a letter from Mr James McEuen, Managing Director of Biocare to a retailer. This letter, amongst other things, makes clear that the choice as to the resale price of Biocare products ultimately rests with the retailer.

It would appear, therefore, that retailer whose website you have mentioned may be mistaken, and is perhaps unaware of the assurance given by Mr McEuen. They may wish to contact him for clarification.

I rephoned BioCare and they confirmed my suspicions (although not entirely conclusive and blatant as it was before )
www.hammond.st/BioCare.mp3

Glaucus · 2 Sep 2008 at 18:02

so you sent the recording to oft?

Stephen7372 · 2 Sep 2008 at 18:04

no emailed them. They're not interested.

Energize · 2 Sep 2008 at 18:12

Is that another one of those stores that sells a million health supplements like probiotics and vitamins that don't do any good at all then?

The Running Man · 2 Sep 2008 at 18:29

is that a distributer who would stop supplying the retailer with said good unless they "tacitly" kept their prices in check with rrp's to allow other retailers (with presumably higher cost base), or simply reduce thewir rebate/funding from buying from said distie?

in the supply chain pressure is often put on retailers by suppliers to keep their prices in check. threats to pull funding, MFD, and or supply are common place really. this usually comes from a prominent retailer kicking up a massive fuss about being undercut by the smaller players. obviously distie does more business with big retailer therefore will bow to their demands and not the small retailer who sold it cheap.

ultimately the customer loses out:/

sadly, the OFT dont really care and will never properly invesitage unless they HAVE to, similarly to the ASA deeming, (Virgins for example) "Unlimited broadband" messaging to be fined espite having a limit on how much can be used LOL

basically another schill of a government agency with no teeth, or balls.

Stephen7372 · 2 Sep 2008 at 18:45

Nickg said:
is that a distributer who would stop supplying the retailer with said good unless they "tacitly" kept their prices in check with rrp's to allow other retailers (with presumably higher cost base), or simply reduce thewir rebate/funding from buying from said distie?

in the supply chain pressure is often put on retailers by suppliers to keep their prices in check. threats to pull funding, MFD, and or supply are common place really. this usually comes from a prominent retailer kicking up a massive fuss about being undercut by the smaller players. obviously distie does more business with big retailer therefore will bow to their demands and not the small retailer who sold it cheap.

ultimately the customer loses out:/

sadly, the OFT dont really care and will never properly invesitage unless they HAVE to, similarly to the ASA deeming, (Virgins for example) "Unlimited broadband" messaging to be fined espite having a limit on how much can be used LOL

basically another schill of a government agency with no teeth, or balls.

exactly