Unfortunately this is not published on the excellent Pure London website, but only came through in their email newsletter so I took the liberty of reciting the contents here as I think it’s an interesting article:
“Online auction site Ebay is calling for the EU to protect small businesses from ‘bullying tactics’ by brands trying to prevent the resale of their products online at a discounted price.
A survey carried out by Ebay of 900 European small retailers found that 49% of those in the UK have been banned from selling certain products online while 45% have been banned from offering unauthorised discounts on goods sold online. It claimed that some brands even lie about the authenticity of products in order to have them removed from the site.
According to Ebay, tens of thousands of small retailers trade on the site, often using it to sell off end of line stock at discounted prices. One retailer who did not want to be named said that Ebay offered a great way for small independents, who have not got their own transactional websites, to reach a larger audience.
She added: “Some suppliers would restrict future orders if we sold online. They know the power they have over small companies like ours.”
Ebay has launched an online campaign and petition to lobby the EU into changing European competition law to make it illegal for brands to blanket-ban internet sales and to prevent them from blocking the resale of previously bought goods.
Mark Lewis, Managing Director of eBay UK, said: “By blocking online sales, these manufacturers are denying consumers access to the widest possible selection of goods at the lowest possible prices. Brands must not be able to get away with this kind of threatening behaviour, and we are calling on shoppers and retailers right across Europe to speak out against it.”
