Price agreements when selling baby and children’s products: ‘Young parents are the victims’ | Economy

As soon as that one stroller goes over the counter at a very affordable price, a retailer can just be approached by a supplier. Whether the price can be adjusted to the recommended price that the supplier uses? It is prohibited, warns the Netherlands Authority for Consumers and Markets (ACM), which, after reports, has an eye on what is happening. Forty suppliers have received a letter saying they would keep an eye on prices and take action if they fall somewhere below the level they want.

Suppliers use automated programs for this, but are also warned by retailers themselves if a competitor has a very advantageous offer. For example, prices remain artificially high, including prams, car seats, baby carriers, children’s textiles, children’s furniture, sleeping products, toys, bottles and pacifiers.

Michiel Denkers, director of the Competition Department at ACM: “Parents want the best for their child. They are often less critical of the price and are quick to open their wallets. It seems that suppliers in this sector are using it. Young parents are the victims of this – even though this phase in their lives already requires a lot of expenditure.”

Suppliers who do not improve their lives risk a fine of up to 900,000 euros or ten percent of their turnover. They must enable retailers to determine their sales prices independently, ACM warns. Recommended prices should be non-binding so that shops compete fairly and parents and grandparents pay the best price.

To help suppliers and retailers, ACM has made a recommended price check. Suppliers can use this to check whether they are complying with the rules. Retailers can check whether their supplier exerts a prohibited influence on their sales prices in the (web)shop.