“Ergobag” or “Satch” brand satchels often cost more than 200 euros. A fixed price can support the high price – the reason why the Federal Cartel Office imposed a fine in the millions against the school satchel manufacturer Fond Of.
Because it made price regulations for its dealers for years, the school satchel manufacturer Fond Of from Cologne has to pay a fine of two million euros with the brands “Ergobag” and “Satch”. As the Bundeskartellamt announced on Tuesday, such vertical price fixing is often at the expense of consumers and could result in them having to pay higher prices, she said. The company apologized in a statement.
“Ergobags” cost around 200 euros or more
“Parents’ willingness to pay to protect their children is particularly high when it comes to school rucksacks and school bags,” said the President of the Cartel Office, Andreas Mundt. “It is in no way acceptable to also enforce price maintenance here.”
“Ergobags” are school bags that, according to the manufacturer, follow the “principle of optimal load distribution”, which has proven itself in professional hiking. The satchels cost around 200 euros or more. Fond Of manufactures school backpacks for older children under the “Satch” brand; Here, too, the manufacturer advertises the ergonomic concept.
Systematic control of pricing
The proceedings against Fond Of had been initiated in connection with a request for administrative assistance from the Austrian competition authority, which was also investigating the company, as the cartel office announced. After a search in January 2019, it turned out that the company had “set minimum prices for its school backpacks and bags for years” and made sure that the dealers did not go below these prices. Fond Of systematically checked the price setting and enforced compliance with the minimum prices with sanctions against the dealers.
According to the Cartel Office, manufacturers have only been allowed to make non-binding price recommendations since the 1970s. But Fond Of had “regularly checked and reminded” compliance with the prices and requirements for online sales “since the early phase” of its business relationships with its dealers from March 2010 to August 2018. In the event of deviations, Fond Of “intervened”, and the dealers addressed partially stopped the behavior complained of.
Discontinued proceedings against participating dealers and agents
According to the authorities, the manufacturer cooperated “comprehensively” and the procedure was concluded by amicable termination of the procedure. The notice of the fine is then legally binding. The proceedings against the dealers involved and against the persons acting for Fond Of were discontinued. “We accept this decision,” said the company.
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Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
