'tp' Activity Toys Ltd appear to prefer COSY CARTEL rather than FAIR COMPETITION.
Office of Fair Trading strongly opposed to Anti-Competitive Practices
As a small village shop it is important that our actual, real-world, retail outlet ~ Carousel ~ be given access to the same Products as other toyshops with whom we are in direct competition. This helps ensure choice, fair competion, good service and downward pressure on prices ~ all of which is in the public interest.
Background
Until Carousel opened eight years ago, not a single toy was sold in the village of Shalford, Surrey UK. ~ and very little else for that matter with most of the half dozen shops standing empty. It took four, hard years to establish a strong customer base.
When, at last, Carousel did begin to prosper, other shops in the village re-opened and they, too, began to prosper. This included another toyshop just two doors away in much larger premises!
Because this rival toyshop was larger and because they had two other shops elsewhere, some Suppliers decided to give them exclusive trade agreements. In particular, 'tp' Activity Toys Ltd. refused to deal with Carousel prefering instead to limit choice in the village and thereby maintain higher prices than might otherwise have been the case. This was very detrimental to us for outdoor play equipment, at that time, was becoming increasingly popular.
In an effort to overcome the stubborn resistance on the part of 'tp' Activity Toys to granting Carousel an account, we decided to join a buying group ~ Toymaster Ltd.
This, instead of solving the problem of non-supply, in fact, exacerbated it!
More problems ~ this time with Toymaster Ltd. ~ who, like 'tp' Activity Toys do not seem to have heard of fair trade.
1. For almost four years Carousel has been in dispute with Toymaster Ltd ~ a buying group of which we are both a Member and Shareholder.
2. During the whole period of our Membership, Toymaster Ltd has steadfastly refused to supply us with the products of 'tp' Activity Toys on the grounds that there is a Youngsters member offering the same products just two doors away.
3. Such action is:
a. Contrary to the Terms & Conditions of our Membership
b. Contrary to our standing as Shareholders in Toymaster Ltd.
c. Anti-Competitive
Toymaster’s apparent complicity in what appears to be a cartel ~ only one other outlet supplying the products of 'tp' Activity Toys in a huge catchment area, where thirty outlets would not be out of place ~ is contrary to natural justice and seems to contravene standards laid down by the Office of Fair Trading.
During our Membership, we have fought for equality, fairness and transparency in our dealings with Toymaster but all to no avail. Instead we have given unfulfilled assurances that access to the products of 'tp' Activity Toys would eventually be given.
A significant percentage of Toymaster’s annual turnover is with 'tp' Activity Toys and it is not unreasonable to assume that a similar percentage of Carousel’s potential turnover has been needlessly forfeited. This amounts to many thousands of pounds and is the root cause of the dispute.
We believe that Suppliers should NOT be allowed to ‘cherry pick’ which of Toymaster’s members they are willing to distribute to. This should be and we believe already is implicit in any agreement, written or verbal, to supply Toymaster.
We hope that anyone reading this Blog will be as incensed as we are at what appears to be a flagrant disregard for the basic rules, which help ensure healthy competition and prevent price rigging.
Carousel is too small a business to take on both 'tp' Activity Toys Ltd and Toymaster Ltd in any legal battle through the courts even though such action would be more than justified.
If anyone reading this has any comments then please post them and, if anyone is dissuaded from buying a product from 'tp' Activity Toys then I will be quite pleased.
Labels: anti-competitive, Carouseltoyshop, cartel, competion, fair trade, Office of Fair Trading, OFT, Toymaster, tp Activity toys
posted by Carousel Toy Shop @ 6:15 AM
