68 SALES PRICES IMPOSED FOR ONLINE SALES Dammann Frères teas fined The Autorité fined the premium tea manufacturer for restricting the pricing freedom of its retailers by setting the final sales price of its brand products sold online. Under the pretext of providing its retailers with recommended prices, it was in fact imposing resale prices on them. As such, Dammann Frères deprived final consumers of the benefits resulting from price competition between retailers. THE DISTRIBUTION OF "RECOMMENDED" PRICES FOR ONLINE SALES The evidence in the case file shows that Dam-modification of the discounts granted, delayvery widely applied by retailers, limited mann Frères distributed supposed ’recom- or cancellation of their deliveries, removalintrabrand competition, i.e. competition mended’ prices to its retailers through itsof their contact information from the list ofbetween the different websites selling Dam- annual catalogues In reality, it encouragedretailers on the Dammann Frères website or mann Frères branded products. them to strictly comply with the prices, ineven, in some cases, the unilateral termina- particular by leaning on its general termstion of their commercial relations with Dam-Retailers were thereby prevented from and conditions of sale and on online distri-mann Frères. freely determining their sales prices on the bution agreements. Internet and hindered in the development of their online sales. Final customers were PRACTICES THAT REDUCED also deprived of the opportunity to take full PRICE MONITORING COMPETITION FOR advantage of competition between the diffe- CONSUMERS rent online distribution channels and bene- Dammann Frères was very attentive to the fit from the best price. prices charged online and ensured that retai-Dammann Frères sought to align the pricesIn light of these details, the Autorité imposed lers respected these prices. In particular, theof all e-commerce websites selling its pro-a €226,000 fine on Dammann Frères. sales people would "report" particularly lowducts with those of its online shop, in order prices and some of its distributors would to protect the latter from the competition ofDecision 20-D-20 of 3 December 2020 pass on the information when they noticed these websites This price-fixing practice, that the recommended prices were not being applied by some of their competitors. R RETALIATION AND SANCTIONS COMPLIANCE: ADVICE FOR NON-COMPLIANCE TO UNDERTAKINGS A manufacturer may set its retailers’ sales prices within If the recommended prices were not applied, the framework of an integrated distribution channel. representatives of Dammann Frères would However, if its products are sold in a distribution channel composed of independent retailers, take retaliatory action with the retailers so they must then be free to set their own terms and that they increased them. conditions of sale and more specifically their prices. Retailers who ignored the instructions and To avoid committing infringements in the management actions of Dammann Frères on the need to of your online sales, visit the website of the Autorité implement the “recommended prices” faced and see our study on Competition and e-commerce. various forms of sanction: revocation or O D T S • C O N S U M E R G O O D S • C I O N N S TROPER LAUNNA 0202 – erutuf evitisop erom a gniretsoF U S M E H R G O O