Bicycle Price Fixing (Fin24 31May)

[Sani]

Sorry , couldnt find the English version in Fin24

 

The Culprets must display on posters at Their bussiness that they are GUILTY OFF PRICE FIXING !

 

Skuldige fietswinkels moet bieg oor pryse

 

Pretoria. – Die fietswinkels en -groothandelaars wat met die Mededingingskommissie skik in ’n kartelsaak, moet plakkate by hul ondernemings aanbring waarin hulle erken dat hulle skuldig is aan prysvasstelling en voortaan aan die bepalinge van die Wet op Mededinging sal voldoen.

 

Dit was die voorstel van Norman Manoim, voorsitter van die Mededingingstribunaal, gister in die skikkingsverhoor.

 

Die vyf ondernemings, Dunkeld Cycles, Bowman Cycles en West Rand Cycles en die groothandelaars New Just Fun Group en Cytek Cycle Distributors, was volgens die kommissie betrokke by ’n vergadering in 2008 waarop verskaffers van fietse, bykomstighede en gesondheidsprodukte die groothandelpryse en winsgrense daarop bespreek het.

 

Die kommissie het in 2009 ondersoek ingestel na die moontlikheid van kartelbedrywighede nadat hy ’n anonieme wenk, ’n klagte van Yellow Saddle Cycling en verskeie erkennings van respondente ontvang het. In Junie 2010 het hy sy bevindinge na die tribunaal verwys en ’n administratiewe boete vir 28 ondernemings van 10% van hul omset vir 2008 aanbeveel.

 

Die saak is in Junie 2011 onttrek nadat verskeie respondente op tegniese gronde besware geopper het. Die kommissie moes sy ondersoek van voor af begin en het dié keer ’n skikkingsooreenkoms met die vyf ondernemings bereik. Hiervolgens sal hulle ten volle met die kommissie saamwerk in die vervolging van die res van die respondente in die saak.

 

Manoim wou weet waarom die vyf ondernemings nie ’n administratiewe boete opgelê is nie. Die kommissie het verduidelik dat so ’n boete die voortbestaan van die ondernemings sal bedreig. Van hulle is klein met net een eienaar en dit sal dus ook tot werkverliese lei.

 

Manoim sê die saak het wyd publisiteit gekry wat die bedryf skade berokken. Om vertroue in die bedryf te herstel, het hy voorgestel dat die ondernemings die plakkate aanbring. Die kommissie se kontakbesonderhede moet daarop verskyn sodat klante hom in kennis kan stel as hulle vermoed die onderneming voldoen nie aan die vereistes van die wet nie.

 

Dié voorstel moet as aanhangsel by die oorspronklike ooreenkoms tussen die kommissie en die respondente gevoeg word.

 

Die bewoording en die tydsduur vir die vertoning van die plakkate is nog nie bekend nie.

Edited May 31, 2013 by Sani

[Capricorn]

yikes, this wheel just doesnt want to stop turning, or is it still fall out from the last such debacle?

[JJDT]

They should've just fined them. This is basically just a slap on the wrist. I think the distributors should've recived massive fines and the cycle shops a lessor amount.

[stratus5]

They should've just fined them. This is basically just a slap on the wrist. I think the distributors should've recived massive fines and the cycle shops a lessor amount.

 

Dont think its over yet. The article alludes to the fact that the five cycle shops/distributers mentioned have agreed to provide evidence, which may result in the remainder (who got off on a technicality) being brought to book?

[shaper]

with the help of google translate....

 

Guilty bike shops must confess prices

 

Pretoria. The bike shops and wholesalers with the Competition Commission ruled in a kartelsaak at their businesses to display posters in which they must admit that they are guilty of price-fixing and now will meet the provisions of the Competition Act.

 

It was the proposal of Norman Manoim, chairman of the Competition Tribunal, said in the settlement hearing.

 

The five companies, Dunkeld Cycles, Bowman Cycles and West Rand Cycles and wholesalers New Just Fun Group and Cytek Cycle Distributors, was according to the commission involved in a meeting in 2008 in which suppliers of bicycles, accessories and health products wholesale prices and profit margins thereon discussed .

 

In 2009, the commission investigated the possibility of cartel after an anonymous tip, a complaint of Yellow Saddle Cycling and various acknowledgments received from respondents. In June 2010 he presented his findings to the tribunal and an administrative penalty of 28 enterprises of 10% of their turnover for 2008 is recommended.

 

The case was withdrawn in June 2011 after several respondents technical grounds raised objections. The commission was to start its investigation and this time reached a settlement with the five companies. Accordingly, they will co-operate fully with the commission in the prosecution of the remaining respondents in the case.

 

Manoim wanted to know why the five companies is not an administrative fine. The commission explained that such a fine endanger the survival of the enterprises. Of them are small with only one owner and it will also lead to job losses.

 

Manoim said the case received wide publicity which is harmful to the industry. To restore confidence in the industry, he suggested that businesses make the posters. The commission's contact details should be given so that customers can notify him if they believe the company does not meet the requirements of the law.

 

This proposal should be annexed to the original agreement between the commission and the respondents added.

 

The wording and the duration of the display of the posters is not yet known.

[kosmonooit]

Contrast this to the IT industry, where if we sell Apple products at the one and only distributors suggested list retail price (and we do), we make a whopping almighty 5%!

[davem]

Can a single store business with a single owner really be involved in price fixing?

 

Have no doubt on the distributor side, but the little guy is more a passenger who basically charges RRP.

[Reg Lizard]

Ja en ek weet hul het die afgelope par maande ten minste 2 keer by Bowman Cycles ingebreek- so ek reken seker dis 'n geval van "you get what you deserve" ;-)

[Wez-O]

Contrast this to the IT industry, where if we sell Apple products at the one and only distributors suggested list retail price (and we do), we make a whopping almighty 5%!

Experienced this myself, truly disgusting as well!

[Sani]

Dont think its over yet. The article alludes to the fact that the five cycle shops/distributers mentioned have agreed to provide evidence, which may result in the remainder (who got off on a technicality) being brought to book?

Yip , I dont think its over yet ,

[Sani]

They should've just fined them. This is basically just a slap on the wrist. I think the distributors should've recived massive fines and the cycle shops a lessor amount.

Agree , and a massive fine .

[SomeBloke]

I'm going over to Dunkeld Cycles just to see that poster.

[DJR]

Having kept an (jaundiced) eye on the workings of the Competition Commission for the last decade, my opinion is that the whole purpose of the commission has been missed altogether.

 

They get "convictions" by intimidating the accused to admitting guilt on technical grounds. Then they give them a slap on the wrist. Often the real big fish get off scott-free. Making arrangements with the little fish (like here) they use them to intimidate the bigger fish - just to give them, you guessed it, another little slap on the wrist. Not one little bit of competition has been promoted. Not one little benefit got to the consumer. All they've done was to teach the price fixers to be a lot smarter and to do it with a tick sheet of legal requirements in hand to stay out of trouble.

 

Think Tiger Brands, bread prices, medicine prices etc. And our petrol price is fixed - by government! Btw, do you realize the the state is exempt from the competition laws? Yes, the minister of health (as an example) have the legal right to tell pharmacies what they may charge. Free market, my ass!

[Lamber]

If my memory serves me correctly- there was another cycle chain store in the PTA area involved with similar allegations against them. The shops have since been sold off- wonder if it's related...

[Pieterg]

Is it bicycle gate or cyclegate?

[Gornilla]

What about the Polar distributor?. They fix prices on all their products.!!!