ACCC probing online shopping 'discrimination'

18 May 2012, 7:11 am   -   Source: Lisa Zilberpriver, SBS
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The ACCC says it's looking into reports that some fashion importers are asking retail websites to charge Aussies more or block them from buying certain brands.

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The ACCC says it's looking into reports that some fashion importers are asking retail websites to charge Aussies more or block them from buying certain brands.

Australians are increasingly making their fashion purchases in virtual stores rather than in physical ones.

Some fashion importers say Australia's appetite for online deals is destroying their livelihood, but the issue is so sensitive for them that they refused to be named.

In order to survive, a handful have made agreements with designer labels either not to sell their products to Australians online, or to charge them more for the same items than customers from elsewhere.

The Australian Competition and Consumer Commission says it's looking into recently-reached deals to establish whether they constitute anti-competitive behaviour.

Chairman Rod Sims urged any online shopper who suspected they were being charged more for an item because of their location to contact the ACCC.

He added that shoppers should always look around before making their purchases.

Whether or not more companies follow suit and strike price deals will depend on shoppers' reactions, according to Choice spokesperson Ingrid Just. 

Consumers were tech-savvy and would find ways around importers' attempts to charge them more - either by choosing a different brand, or by using third-party shipping websites, she said. 

SBS contacted the International Fashion Group - which is reported to have made a deal with some US denim designers - but has not yet received a reply.

The Australian Retailers Association says this country is one of the most expensive in the world to run a bricks-and-mortar store.

“The ARA has recently put submissions forward which call for changes to contemporary wage and penalty rate structures to ensure they’re able to employ people to keep stores open and meet the demands of the modern consumer and remain globally competitive," Executive Director Russell Zimmerman said in a statement.

It was also calling for the Low Value Imports Threshold to be slashed to zero in order to "level the playing field" for retailers competing with overseas businesses, he added.

Some business owners told SBS they wouldn't survive if they sold their wares at online prices

They wouldn't be able to afford the rent, or pay their staff Australia's relatively high minimum wage, they said.

They added that consumers just didn't want to know their side of the story.

According to PayPal, 45 per cent of Australians start off by searching for products on local sites, but 30 per cent end up buying from overseas.

Watch this report on YouTube:

Watch the full interview with the ACCC's Rod Sims:

Watch the full interview with a Choice spokeswoman:

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Your Comments

Lynch the Landlord

LIZZY - from NEWMARKET, 1 year

Why are commercial rents so high? It's the landlords who are responsible for such exorbitant rents, our company pays $250,000.00 EVERY month for just one level in a Brisbane CBD building. How does this help anybody at all other than the landlord?

Lower Prices..Sell More units

Dan - from Brisbane, 1 year

Now that it's so easy to skip the middle man with the internet and find out that $150 pair of jeans really cost them $40 they are kicking up a stink...I used to work at a retail chain where you would never find anything with less than a 250% markup....Lower your prices and sell more units..K-mart did it with jeans...they sold jeans at 20$ each and made $100 thousand of them that year. the next they sold them for $10 a pair and made almost 8 times that (figures are only approximate from memory)

Poor Service and Over Priced!

True Blue Ozzie - from Gladstone Q, 1 year

So no wonder many of us click to buy! Australian Buisness need to up there game provide good service, and leave the hudge markup mentality behind in the past where it belongs. Settle for great service and a sensible markup, watch your cash registers start working then! The ACCC has every right to investigate any Buisness who is trying block access to internet shopping, Australians on average all ready pay to much compared to the rest of the world. No pity for poor service and high prices!

Diddums...

Derf Skren - from Newcastle, 1 year

Yes, we the retailers of Australia, simply cannot figure out how to do business without our 300% markups. It must be the fault of those stupid customers we've been being rude and unhelpful to for the last 50 years!

Rents are the biggest part of the problem

Steve - from Sydney, 1 year

The likes of westfield charging truly exorbitant rents are the major part of the problem. This has caused many landlords in the strip centres to follow suit. The cost to lease a shop in this country is truly prohibitive.

Crocodile Tears

Steph - from Magill, Adelaide, 1 year

I can't believe that these 'struggling' retailers are trying to justify their high prices by claiming their overheads are excessive. Perhaps they should relocate their outlets to a more affordable location, and while they're at it, tone down their retail environments, rather than spend huge amounts of money creating over the top interior design statements, and lower their prices. How is it I can get items sent half way around the world and save a considerable amount of money over buying locally?

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