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Supplier with sole distribution of products refusal to supply

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  • 17-08-2020 11:25pm
    #1
    ambilight
    Registered Users Posts: 12 ✭


    Hi,
    I have a shop and previously dealt with a supplier who stopped supplying to us as one of their employees was also in our business (which was known by the manager when the account was opened).

    I deal with numerous other suppliers but this supplier has sole distribution of certain brands in Ireland. Can they legally refuse to supply us?

    By refusing to supply to us, it offers our competition a distinct advantage. Thanks


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    #2
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    Once they have a legitimate reason and you aren't being discriminated against then there's really nothing you can do. Sounds like they are just trying avoid a conflict of interest.


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    #3
    ambilight
    Registered Users Posts: 12 ✭ambilight


    Thanks Jimii,
    I do get that but the person who is their employee is no longer with us so there is no longer any conflict.


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    #4
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    Have they given you a reason for not supplying you now at all? Only thing it really seems you can do is ask them to reconsider and put forward a good case why. Is there a stockist nearby that may have a geographical exclusivity?


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    #5
    sasta le
    Banned (with Prison Access) Posts: 1,586 ✭✭✭sasta le


    Dont understand someone works for you and the supplier?


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    #6
    Peregrinus
    Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    This has got to be an anticompetitive practice, surely? Restricting supply is a textbook example of abuse of a dominant position. Be worth a phone call to the Competition and Consumer Protection Commission.


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    #7
    Darc19
    Registered Users Posts: 3,817 ✭✭✭Darc19


    Yes they can unless they hold a dominant position in the market. Even then there are ways around it and you would need to prove the case.

    https://www.ccpc.ie/business/help-for-business/guidelines-for-business/refusal-to-supply/


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    #8
    Peregrinus
    Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    Darc19 wrote: »
    Yes they can unless they hold a dominant position in the market. Even then there are ways around it and you would need to prove the case.

    https://www.ccpc.ie/business/help-for-business/guidelines-for-business/refusal-to-supply/
    They're the exclusive distributor in Ireland of the product concerned. How is that not a dominant position?


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    #9
    SEPT 23 1989
    Registered Users Posts: 43,028 ✭✭✭✭SEPT 23 1989


    Contact their HQ in Europe and ask why you can't buy their product in Ireland

    I'm sure they won't be too happy


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    #10
    Peregrinus
    Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    SEPT 23 1989 wrote: »
    Contact their HQ in Europe and ask why you can't buy their product in Ireland

    I'm sure they won't be too happy
    We're in a Single Market. If the exclusive distributor in Ireland won't sell you whatever it is, you can buy it from another distributor anywhere in the SM. But obviously this could involve e.g. shipping costs or time delays that you'd rather avoid.


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    #11
    ambilight
    Registered Users Posts: 12 ✭ambilight


    sasta le wrote: »
    Dont understand someone works for you and the supplier?
    Yes, they were in the business with me but not any longer


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    #12
    ambilight
    Registered Users Posts: 12 ✭ambilight


    Peregrinus wrote: »
    We're in a Single Market. If the exclusive distributor in Ireland won't sell you whatever it is, you can buy it from another distributor anywhere in the SM. But obviously this could involve e.g. shipping costs or time delays that you'd rather avoid.

    Exactly, I'd rather avoid the shipping costs and delays. Delivery time is the main issue.


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    #13
    ambilight
    Registered Users Posts: 12 ✭ambilight


    jimmii wrote: »
    Have they given you a reason for not supplying you now at all? Only thing it really seems you can do is ask them to reconsider and put forward a good case why. Is there a stockist nearby that may have a geographical exclusivity?
    I have asked numerous times. They won't give me an answer and keep putting me off. I have rang and emailed multiple times.


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    #14
    screamer
    Registered Users Posts: 6,153 ✭✭✭screamer


    ambilight wrote: »
    Yes, they were in the business with me but not any longer

    Perhaps the distributor is supplying that person instead. There’s nothing you can do TBH once they refuse you. It’s a nasty tactic but sole distributors are in it for their own profit and protection. Find another distributor elsewhere, if you’re vat registered you should be able to bring stuff in with 0 vat.....


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    #15
    ambilight
    Registered Users Posts: 12 ✭ambilight


    screamer wrote: »
    Perhaps the distributor is supplying that person instead. There’s nothing you can do TBH once they refuse you. It’s a nasty tactic but sole distributors are in it for their own profit and protection. Find another distributor elsewhere, if you’re vat registered you should be able to bring stuff in with 0 vat.....
    Thanks, I have tried but can't source some of the brand's. Definitely not supplying the other person.


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    #16
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Make a complaint to the CCPC: https://www.ccpc.ie/business/contact/make-competition-complaint/

    Another option is to open a new account with the company and feign ignorance. Don't know how small the supplier is though.


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    #17
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    ambilight wrote: »
    I have asked numerous times. They won't give me an answer and keep putting me off. I have rang and emailed multiple times.

    How bizarre. They must be making too much money to be going on like that lol!

    How did things end with the employee? Is there any chance that may have effected things at all?


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    #18
    GerardKeating
    Registered Users Posts: 7,660 ✭✭✭GerardKeating


    jimmii wrote: »
    How bizarre. They must be making too much money to be going on like that lol!

    Or they reckon that people will just go to other retails for it.


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    #19
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    GerardKeating wrote: »
    Or they reckon that people will just go to other retails for it.

    Yeah but presumably there isn't 100% crossover with OPs customer base. I'm assuming this isn't something mass market and stockists might not be that common.


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    #20
    Darc19
    Registered Users Posts: 3,817 ✭✭✭Darc19


    Peregrinus wrote: »
    They're the exclusive distributor in Ireland of the product concerned. How is that not a dominant position?

    I don't think you understand what dominant market position is.

    If they sold lawnmowers and their brand had 70% of the market, that would be a dominant position. You then need to show that they are abusing that position and affecting your business detrimentally.

    If lawnmowers were just 10% of your business, that would not qualify.


    If they had 30% of the lawnmower market, and another competitor had 20%, then no dominant position applies.


    They could use the entire grass machinery market too, so it is extremely difficult / impossible (and costly) to prove.


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    #21
    Forge83
    Registered Users Posts: 742 ✭✭✭Forge83


    ambilight wrote: »
    Thanks, I have tried but can't source some of the brand's. Definitely not supplying the other person.

    Can you not get another retailer you know in the industry to purchase it for you. I do this all the time with brands I don’t deal directly with.
    Alternatively, call to the supplier in person to speak to the boss. Worst he/she can do Is say no to your face.


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