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Know What Re-retailing Is

What is re-retailing? Re-retailing occurs when a trader buys goods from a retail outlet and resells them by way of retail to consumers. In such instances, the trader is likely
24 Apr 2017 10:57
Know What Re-retailing Is

What is re-retailing?

Re-retailing occurs when a trader buys goods from a retail outlet and resells them by way of retail to consumers. In such instances, the trader is likely to charge prices in excess of that levied by the initial retailer in order to make a profit.

Re-retail of price control

Under Section 44 of the Commerce Commission Act 2010 (CCA2010), the Commission is empowered to fix and declare by order the maximum price of certain household items through the approval of the Minister. Some of the items under price control include:

  •  Normal Flour/Sharp
  •  Sugar
  •  Rice (Imported)
  •  Imported Canned Fish & Mackerel
  •  Canned Beef & Mutton
  •  Powdered Milk
  •  Liquid Milk
  •  Salt
  •  Onions
  •  Potatoes
  •  Garlic
  •  Tea
  •  Biscuit
  •  Bread
  •  Butter
  •  Margarine
  •  Split Peas
  •  Blue Peas

The Commission has fixed the wholesale and retail prices of the items listed above.

All retailers including small canteen operators should buy goods on wholesale for the purpose of retail. They cannot buy goods on retail, paid the maximum retail price declared by the Commission and proceed to sell the same by re-retail at a higher price.

For example:

“A canteen operator in Nasinu cannot buy packets of FMF Breakfast Crackers (375g) for $1.37 from a local supermarket and expect to sell the same at a higher price. If it happens, then the trader could be in breach of the CCA2010 and may face legal action.

“The trader should buy them on wholesale at the maximum wholesale price set by the Commission at $1.19/packet and retail them for $1.37/packet”.

The only way one can re-retail such items if the supermarket charge a price lower than $1.37 to a re-retailer and then the re-retailer sells at $1.37/packet.

Advice from the Commission

All canteen operators or small retail outlets should visit the wholesale department of any major supermarket to purchase goods for retail purpose.

Should any of these supermarkets refuse to sell any price control goods by wholesale, then the matter must be reported to the Commission immediately on 3372178 or 8911619.

But proceeding to engage in re-retail and overcharge on prices of goods considered price control would only result in legal action and possible fines.

As such, canteen operators are strongly advised to observe the maximum prices declared by the Commission and to liaise directly with the office, should there be a need for further clarification.   

Next week: Unconscionable Conduct against tenants

For more information/details on Fiji Commerce Commission and Commerce Commission Decree 2010, visit our website on http://www.commcomm.gov.fj or join us on our Facebook page at https://www.facebook.com/commcomm.gov.fj.

Feedback:  ivamere.nataro@fijisun.com.fj

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