Conditional selling court case, a timely reminder to traders

The Consumer Council would like to remind all supermarkets and shops to refrain from conditional selling as it is illegal and cases have gone to court.

The Nasinu Magistrate’s Court recently found a prominent supermarket in Nasinu guilty of conditional selling. The retailer was guilty of refusing to sell goods unless other goods are purchased which is contrary to provisions in the Commerce Commission Decree 2010. The supermarket refused to sell milk to consumers unless other goods are purchased on condition that a $10 purchase of other goods was made.

The court’s verdict should be a timely reminder to traders that conditional selling is illegal and amounts to unfair trade practices.

According to Section 87E (1) of the Commerce Commission Decree 2010, Every person commits an offence against this Decree who, whether as a principal or agent and whether by himself or his agent, refuses to sell any goods or services except on the condition that other goods or services are also purchased from him or any other person nominated by him or attempts to impose any such condition.

Conditional selling has become a common practice by unscrupulous traders who take advantage of vulnerable consumers. About 30 cases of conditional selling were reported to the Council last year. These cases included some secluded neighborhood and rural shops taking advantage of their location and forcing consumers to buy other things which they don’t need or want. In many instances consumers give in to the demands of unscrupulous traders.

These small shops mostly operate in remote areas away from the main business district and therefore are not easily spotted by the enforcement agencies. Such small communities are at the mercy of small shop owners who breach consumers’ rights and break the law.
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The Council is warning traders in isolated residential areas to stop this unethical behaviour.

Meanwhile, the Council would like to urge consumers to be proactive and report on retailers who refuse to sell goods or services unless other goods or services are purchased. Consumers should assert their rights under the law and also inform the offending retailers that such practices are illegal.