Biznes Fakty
The Office of Competition and Consumer Protection accuses Radaway of improperly setting prices for its products
The President of the Office of Competition and Consumer Protection (UOKiK) has commenced legal action against Radaway and its commercial director, as stated in a press release from the office. The UOKiK alleges that the company may have been unlawfully determining prices for bathroom equipment for nearly a decade.
According to the Office, Radaway has been a manufacturer and, since 2016, a wholesaler of bathroom equipment under its brand. The product range includes shower cabins, shower trays, bathtub screens, and linear drains.
Allegations against Radaway
The Office claims that the evidence in possession of the UOKiK President, gathered during searches among other methods, suggests that Radaway may have been dictating the sale prices of its products in online stores not affiliated with it since at least 2016.
Furthermore, the Office of Competition and Consumer Protection emphasized that the law mandates each seller, who is an independent entrepreneur, to determine product prices autonomously, based on their own economic assessments. Price setting by the distributor in a top-down manner is deemed illegal and restricts the possibility of purchasing products at lower prices than those established by the prohibited agreement.
The UOKiK indicated that Radaway could have coordinated the actions of online retailers and ensured they adhered to agreements regarding resale prices. Additionally, it may have enforced discipline among store owners who wished to sell Radaway products at lower prices. Potential consequences for non-compliance could include the loss of discounts. Retailers could also track their own pricing and report to Radaway if they discovered cheaper products offered by competitors.
One of Radaway’s managers has also been accused of breaching competition law. He allegedly oversaw the enforcement of imposed prices and disciplined online retailers, including the decision to cut discounts for those who sold products at prices lower than the dictated amounts, as reported by the Office of Competition and Consumer Protection.
What consequences does the company and its director face?
– Bathroom equipment represents one of the largest expenditures during home renovations or finishing. Thus, consumers seek out favorable prices from various sellers. In this instance, they might have been deprived of the opportunity to purchase Radaway brand products at competitive rates, as these could have stemmed from market collusion – stated Tomasz Chróstny, the president of the Office of Competition and Consumer Protection, as quoted in the office’s press release.
Engagement in an agreement that restricts competition can incur a financial penalty of up to 10 percent of the entrepreneur’s revenue. Managers involved in colluding may face fines of up to PLN 2 million – the Office reminded.
We reached out to Radaway for a statement but did not receive a reply by the time this article was published.
