Dutch regulators crack down on dog food price manipulation
The Netherlands Authority for Consumers and Markets (ACM) has issued warnings to multiple dog food suppliers for illegally influencing retail prices, keeping consumer costs artificially high. The watchdog has notified nine companies and alerted others in the sector about compliance with fair competition rules.
Retailers, including pet stores, must be free to set their own sale prices, ACM stated. Reports indicate that some producers also influence retailer pricing through wholesalers, a practice that could result in fines of up to 900,000 euros or 40 percent of their turnover.
“Retailers must be able to set their own sale prices of the products in their stores, both online and offline. Therefore, suppliers cannot exercise any pressure on retailers to raise consumer prices,” said ACM Chairman Martijn Snoep. “Dog owners want the best for their dogs. That means they might be more willing to shell out money. Suppliers in this sector seem to take advantage of that willingness. Dog owners are thus the victims of that.”
ACM emphasized that suppliers are only allowed to provide non-binding recommended retail prices. Any pressure on retailers to adhere to these prices is prohibited. Suppliers cannot confront retailers about their sale prices, stop supplying retailers who do not follow recommended retail prices or reward those who do, repeatedly remind retailers about recommended prices or highlight other retailers' prices, use wholesalers or intermediaries to influence retailer pricing, or act on retailer complaints about competitors’ prices.
ACM will monitor whether the warned suppliers comply with these rules. The authority has provided a checklist (available in Dutch) to help suppliers and retailers ensure compliance with fair pricing regulations.
