Commission Cuts

[cottageguy]

Anyone else had a message from James Villas about reducing commission?

Due to the unforeseen circumstances of the credit crunch and various other activities, we have decided to reduce our commission structure as of 1st September 2008.


I don't feature them, but there is an argument that we should collectively resist any such commission cuts by instantly dropping merchants. Cos if one merchant discovers cutting commission doesn't get a reaction . . .

Thoughts?

Jon

[Travel Pixel]

In our experience James Villas are a poor merchant.

Aswell as offering next to no commission they have a huge (or did i havent checked recently) phone number on site.

Dave

[channel5]

Originally Posted by cottageguy I don't feature them, but there is an argument that we should collectively resist any such commission cuts by instantly dropping merchants. Cos if one merchant discovers cutting commission doesn't get a reaction . . .

I think this would be against the law, as it's technically the same as price fixing.

Anti-competitive behaviour under the Enterprise Act | OUT-LAW.COM

[cottageguy]

[quote=channel5;420427]I think this would be against the law, as it's technically the same as price fixing.

QUOTE]

Choosing not to feature a particular merchant is so not the same as price-fixing.

But you make your own choice.

Jon

[channel5]

Originally Posted by cottageguy Choosing not to feature a particular merchant is so not the same as price-fixing. But you make your own choice. Jon

I wouldn't want to be the one to try this out with the OFT!

[cottageguy]

Originally Posted by channel5 I wouldn't want to be the one to try this out with the OFT!

Look, I realise you want to promote your legal stuff, but it is not appropriate. The clue is in the term PRICE fixing. I am not suggesting any action in relation to the PRICE paid by consumers. The commercial distribution agreements of a company, freely entered into by both sides of a commercial agreement, are a different matter entirely.

My point is, we have no collective clout that I am aware of. Can you imagine, for example, a tour operator cutting commission to travel agents unilaterally? It wouldn't happen because through their trade associations and weekly newspapers, the agents would publicise it and declare that those brochures were coming straight off their shelves.

Giving the consumer less opportunities to purchase, because the vendor is cutting his distribution budget, is not a PRICE-fixing issue. Otherwise every operator would cut their commission and rely on the law to secure their distribution.

OFT is a distraction from the central issue and I won't be responding any further on the subject.

Jon

Jon

[channel5]

"These criminal sanctions can only be applied against individuals who set up and maintain so-called 'hardcore' cartels (for example, agreements between competitors to fix prices, share markets, limit production, and rig bids)."


It's not just about price fixing, although if you employ a cartel to keep commission levels high then you are price fixing

The OFT also encourages whistle blowers..

[realholidayreports]

Can somebody tell me what the hell channel 5 is spouting on about.?

A certain big company dropped our commission recently, we removed them and all their group from our site.



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[trevHCS]

Originally Posted by realholidayreports Can somebody tell me what the hell channel 5 is spouting on about.?

About as much sense as Channel 5 or Five as they seem to be known now. You can't price fix on your own so wouldn't worry....well not unless you get into monopolies, but that's an entirely different matter.

Trev

[Mogga]

Originally Posted by channel5 The OFT also encourages whistle blowers..

But what counts as price fixing?
The 4 main uk supermarkets all have their cheapest can of tomatoes at 19p. Is that price fixing? Would the OFT investigate?

[millionpoundlake]

Hmmm, I can see an Affiliates Trade Union being formed.

One out All out.

Bob
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