Hi all,
I recently visited the AD here and he is selling all the sports steel watches at a very high premium (almost at par with some watches listed on Chrono24).
Is there anything we as consumers can do about it?
Thanks in advance
AJ
If a Company sets the price of a watch at X then AD's cannot sell brand new products above this price, if the AD is doing this then it has to be asked if they are a genuine AD or a grey dealer? If the watches are not new there isn't a problem but if the AD is stating that they are brand new and giving customers a full warranty package, their name on the card etc., but charging a premium then I would say that they are trading illegally.
Not sure what country you are in but in the UK we have what is called Trading Standards, these people can close down and/or prosecute shops that trade in this way.
I fear you may be mistaken. Below is an extract from an open letter published by the UK Competition and Markets Authority on 20 June 2017 headed "Restricting resale prices: an open letter to suppliers and resellers"
"If you are a reseller:
• You are entitled to set the price of the products you sell, whether online or
through other sales channels.
• Suppliers are not usually allowed to dictate the prices at which you sell or at
which you advertise their products online.
• If you have agreed to sell at fixed or minimum prices with your supplier, you may
both be found to be breaking competition law.
• If a supplier asks you to comply with a restrictive pricing policy you should report
this to the CMA."
Now, admittedly, this is usually applicable to minimum pricing agreements. but I would suggest it can also be applied to open/market pricing. As such, I believe there is nothing illegal in charging above MSRP and wouldn't expect Trading Standards to do anything as no laws or regulations have been broken.
I don't think this applies to AD's whom are appointed by brands. A sales price sets by the bread is the maximum in automotive for the customer, I don't think watches are any different.
Competition Law is a bit of a minefield. Here is a good article by a well respected UK law firm https://www.pinsentmasons.com/out-l...etition-law-puts-limits-on-how-far-you-can-go
However, reading it through, though it may indicate that some pricing agreements between suppliers and retailers may be allowable under competition law, that does not imply that a consumer can rely on these pricing agreements as a third party. Any contract of sale between the consumer and the retailer is a separate agreement from and not subsidiary to the supplier/retailer agreement.
I fear you may be mistaken. Below is an extract from an open letter published by the UK Competition and Markets Authority on 20 June 2017 headed "Restricting resale prices: an open letter to suppliers and resellers"
"If you are a reseller:
• You are entitled to set the price of the products you sell, whether online or
through other sales channels.
• Suppliers are not usually allowed to dictate the prices at which you sell or at
which you advertise their products online.
• If you have agreed to sell at fixed or minimum prices with your supplier, you may
both be found to be breaking competition law.
• If a supplier asks you to comply with a restrictive pricing policy you should report
this to the CMA."
Now, admittedly, this is usually applicable to minimum pricing agreements. but I would suggest it can also be applied to open/market pricing. As such, I believe there is nothing illegal in charging above MSRP and wouldn't expect Trading Standards to do anything as no laws or regulations have been broken.
