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return of RRPs to the electrical goods sector

3 February 2012

The Competition Commission has revoked the Domestic Electrical Goods Order having concluded that increased competition (as well the fact that some of the affected goods are now obsolete!) removed the need for it.

The order addressed competition concerns dating back to 1997 in relation to certain types of white and brown goods and prohibited recommended resale prices (RRP) by suppliers and, except in limited circumstances, a refusal to supply goods to any retailer.

Time will tell whether there is a move back to RRPs and to more use of selective distribution. However, it seems unlikely that the revocation of the order will change the competitive nature of the sector and, of course, suppliers and retailers will continue to need to ensure that they comply with both UK and EU competition law.

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