Many companies involved in the direct selling industry in Australia conduct their business
by way of a buy/resell model. (This is similar to other forms of distributorships.) In some
countries, direct selling companies are able to specify a minimum price below which their
independent distributors cannot resell or advertise the goods or services. However, this
practice, which is known in Australia as “resale price maintenance”, is strictly prohibited in
Australia under the Competition and Consumer Act 2010 (the Act)
1
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What is “Resale Price Maintenance”?
Suppliers of goods and services in Australia are unable to specify a minimum price below
which goods or services are unable to be resold. Independent contractors or distributors
have the right to advertise and sell goods at any price they like.
