The UK's Office of Fair Trading (OFT) is investigating allegations that electronics
manufacturers practice "dual pricing" when selling wholesale to high
street retailers in the UK and their online counterparts, to the detriment of
the latter.
Online retail industry body, the Interactive Media in Retailing Group (IMRG)
has complained that online retailers are offered less competitive wholesale
prices for electronic equipment, meaning that they are unable to compete with
high street shops during crucial periods, such as in the run-up to Christmas.
However, manufacturers have argued that there is only one wholesale price,
but that discounts are afforded to bricks-and-mortar shops based on commercial
considerations, such as displaying the products.
In a statement released earlier this month which threatened to name "a
major electrical consumer goods manufacturer" which had been employing
dual pricing practices, IMRG's CEO, James Roper, commented that:
"This serious abuse by a global brand of both its position and consumers' rights
must be stopped immediately. Twenty four million British consumers have embraced
internet shopping. They are collectively investing £6 billion a year in PCs
and internet connections that give them their own, personal shopping environments
- their High Street at home."
"These consumers are directly bearing many of the costs previously carried
by bricks-and-mortar shops, which is a major reason for internet shopping prices
being highly competitive, so it is completely inappropriate to disadvantage
them through dual pricing."
"IMRG has raised this as a matter of urgency with the Office of Fair Trading,
and we are confident that we can rely on the Government, which has often proclaimed
its commitment to 'making Britain the best place in the world to trade electronically',
to stamp down on this unhelpful innovation before it is copied by other manufacturers
and adopted by other sectors, with dire consequences for consumers and the UK
economy."
It has been suggested by the UK media that the manufacturer in question is
electronics giant Sony.
However, speaking to the BBC this week, Sony UK managing director, Steve Dowdle
denied that a dual pricing system was in operation.
"Sony offers a common basic trade price to all resellers, online and offline.
What is true is that Sony offers discounts to qualifying retailers, which benefit
consumers," he explained, continuing:
"We supply retailers using a comprehensive set of commercial conditions
that reward all dealers who add value to the brand proposition and purchasing
experience. The commercial conditions recognise the different consumer experience
and service that retailers offer to their consumers."