Dissolution due to deviation from recommended prices: unacceptable under competition law
An important statement was recently made with regard to margin management and ditto pricing policy.
A manufacturer of mattresses is confronted with a dealer who, on his own initiative, offers 20% internet discounts on the recommended retail price of the mattress manufacturer in question.
Subsequently, immediately after the launch of the promotion on this website, a large number of dealers put pressure on the mattress manufacturer to end the dealer’s conduct in question. The mattress manufacturer has always taken the position that it does not care in itself to what extent dealers give consumers discounts, but that it cannot afford that in the future major dealers would no longer want to sell its products because they cannot live with the hefty discount practices of another dealer.
Since the mattress manufacturer even terminates the dealer agreement for this specific reason, there is an extremely far-reaching sanction for non-compliance with the recommended consumer prices. This conduct is contrary to competition law. After all, the bottom line is that the entrepreneur who does not adhere to the recommended prices is excluded in the most far-reaching way. After all, there is no discussion as to whether or not there is indirect soft incentive to maintain a certain consumer price and/or whether or not this course of action is fully justified. No, there will be a flat termination, specifically for that reason and that is unacceptable under competition law.
It is good that the Court of Appeal has understood this state of affairs and has subsequently declared the termination of the cooperation relationship null and void.
Ludwig & Van Dam franchise attorneys, franchise legal advice
Other messages
Duty of care franchisor in the pre-contractual phase
The District Court of Limburg ruled on 6 April 2017, ECLI:NL:RBLIM:2016:2843, that the franchisor has a duty of care towards the prospective franchisee in the pre-contractual phase.
Franchisee avoids joint and several liability in private
In a judgment of 28 March 2018, ECLI:NL:RBROT:2018:2913, the District Court of Rotterdam ruled on the meaning of the clause in the franchise agreement stipulating that
Incorrect prognosis due to lack of location research
The District Court of The Hague ruled on 21 March 2018, ECLI:NL:RBDHA:2018:3348, that a franchisor's forecast was unsound, as a result of which the franchisee had erred and the franchisor
Column Franchise+ – “Disputes about franchise fees”
Lately, it has also hit the biggest franchise organizations in the Netherlands. At the formulas of Albert Heijn, Hema, Etos, Bruna and Olympia, for example, there was and will be a lot
Ludwig & Van Dam sponsor of the Franchise Trophy 2018
On May 24, 2018, VVD member of parliament Martin Wörsdörfer and ID&T founder Duncan Stutterheim will present the Franchise Trophy 2018 on behalf of the Dutch Franchise Association.
Column Franchise+ – “Flashing quarrels about franchise fee must stop”
Lately, it has also hit the biggest franchise organizations in the Netherlands. At the formulas of Albert Heijn, HEMA, Etos, Bruna and Olympia, for example, there was and will be a lot