Angela Jameson
Win Sky+HD for a year and a trip to Barcelona
Two of Britain's most popular baby buggy brands have joined the front line in the growing global battle between retailers and eBay, the internet auction site.
Maclaren and Bugaboo, which together supply just over a third of the pushchairs sold in the UK, are trying to stop new pushchairs being sold through eBay shops for a fixed price.
They will be followed by Mamas & Papas, which accounts for another third of the market. It will introduce a strict internet sales policy from September making it almost impossible for independent retailers to sell its products on eBay.
The moves come after a ruling in the French courts this week in which eBay was ordered to pay €19.28 million (£15.24million) to LVMH and €17.3 million to its subsidiary, Christian Dior Couture, for damage to their brands.
EBay is fighting a backlash from manufacturers at the same time as it suffers from a slowdown in the American economy and management upheaval since the departure of Meg Whitman, its chief executive, this year.
The LVMH case centred on the way in which eBay dealt with sales of counterfeit goods. In contrast, moves by some of Britain's most popular manufacturers are being seen as an attempt to prevent independent high street stockists from undercutting prices in the manufacturers' own stores.
One nursery retailer who has a shop in North London said that Mamas & Papas had put stockists who sold through third-party websites on a “no-returns” policy across its entire range since 2005. This effectively made eBay sales unprofitable for the retailer. Now it was telling stockists that third-party websites must meet the company's strict internet trading policy.
“You must obtain our written approval before retailing Mamas & Papas products via the internet following the implementation date. When writing to us seeking approval you must provide us with appropriate proof of compliance,” Mamas & Papas said in a letter sent to its trade stockists last week.
The nursery retailer, who did not want to be named, said: “What they are trying to do is maintain the prices in their own retail outlets ... Five years ago, you had your local market and price competition was local. Now the first thing everyone does is check the price online, so you have to deal nationally to balance that.”
A spokeswoman for Bugaboo confirmed that it would not tolerate its products being sold new on eBay and it would not supply a retailer who intended to sell through fixed-price eBay shops. She said that buying a new Bugaboo product, even in original packaging, from an unofficial stockist would invalidate the warranty.
Maclaren introduced an internet sales policy that banned eBay transactions this year because of concerns that consumers were being ripped off and sold dangerous or counterfeit goods online. A spokeswoman said that removing Maclaren products from eBay became a safety issue after imports were sold in the UK: “These products did not meet the UK standards, so they had to be removed in order to protect consumers,” she said.
EBay said: “We are seeing an increasing and disturbing trend whereby manufacturers and brands either try to ban distributors from selling on particular websites, including on eBay, or on the internet as a whole. Sometimes the prohibitions are explicit. In other cases, manufacturers impose onerous requirements on how their product can be sold, which effectively restricts who can sell them.”
Explore your passion for food with the delights of Thai, Indian & Chinese cooking
In our new series, Tony Hawks takes a dry, wry look at modern life - junk mail, interminable meetings and snooty sales assistants
Read the training tips and advice that helped our London Triathletes
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
The latest travel news plus the best hotels and gadgets for business travellers
Shortcuts to help you find sections and articles
2007
£30,000
2006
£14,337
2008
£39,937
Great car insurance deals online
c.£75,000
GlosFirstmeansbusiness
Gloucestershire
£32,795 - £41,545
Universitry of Southampton
Southampton
£
£32,795 - £41,545
Universitry of Southampton
Southampton
Competitive Package
Npower
West Midlands
1 & 2 Bed apartments
From £249,995
Great Investment, River Views
Great Dubai Investment Opportunities
from £89,950
low-cost ownership homes in London
Las Vegas SALE!
£POA
With Ramblers Worldwide Holidays!
£POA
List your property with two leading travel websites
£POA
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Globrix Property Search - find property for sale and rent in the UK. Milkround Job Search - for graduate careers in the UK. Visit our classified services and find jobs, used cars, property or holidays. Use our dating service, read our births, marriages and deaths announcements, or place your advertisement.
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
the solution to this corperate greed is for ebay sellers to source second hand buggies create a huge second hand market,this will have the same effect as selling their new buggies,if high st shops cant compete then they go under,were sick of being ripped off by them.
P shearwood, scunthorpe, uk
I think some people are forgetting that it makes no difference to the manufacturer in terms of profit - they have already sold the goods to the person reselling on ebay!?! If it's more about consumer safety than big bucks I don't see the issue ... plenty of other places to buy online that are safer!
Julia, Birmingham, West Midlands
Manufacturers or big companies just do not want competition!!
Why? They see a real and big danger of their profit shrinking due to private or online sales!!
One thing they do not understand is we as consumers are not as stupid as they are trying to make us!!
We can see their GREED!!
N.N, danbury,
If any part of this is price-fixing, it is simply illegal.
rwgray, Brighton, UK
I'm glad to see that Ebay are being forced to take responsibility for their actions at long last. Their shoddy attitiude towards buyers and sellers and their inability to police their own site is making them a laughing stock and destroying the lives of people who rely on Ebay to make a living.
Sarah , London,
What the article is NOT saying is that all of these companies have approached retailers with an agreement that states they can only sell at the RRP, not below. Maclaren & Mama's both sell direct to the public at the RRP. Coinsidence - I don't think so! Why are these companies not being investigated?
Ann, Manchester, Lancs
No worries I just wait and buy secondhand so theses manufacturers and the cosy retail cartel are the losers. And their European tactics fortunately do not work in Asia where all these products are available at discount retailers and on-line
Patrick, Taipei, Taiwan
what do you expect ?
You are cutting big business profit and there is always the possibility of pirated goods.
The solution is simple buy another brand, this will force Big Business to get real
Howard , Basildon, England
Sounds like the manufactuers have found a way to stop ebay undercutting their "Recommended" price. I.e. back to rip off prices.
Ian, Tokyo, japan
The EU regulation allows selective distribution agreements. I spend my life negotiating around these rules - it is one of the most fun jobs in the UK. The EU regulation expires in 2010 - lobby now to affect its replacement on these issues.
But yes sometimes within the rules you can do this.
Susan Singleton, London,
Surely what they are suggesting is price fixing which I thought was illegal, am I wrong?
Caroline, Saffron Walden, England
If you are unlucky to purchase a pushchair off ebay which then turns out to be an import which is not UK approved, so no fire retard functions or other subtle bits which make it a safe chair for your child in UK and you find out the hard way (which I know a family who has), then you would think diff
Ian, Northampton, Northamptonshire
Why does the EU constantly stifle competition?
ken, Coventry,
I think it's a great idea. If i buy baby goods on line i want to be sure that the item i buy is safe.There are loads of items on line that you can bargain hunt for, but do you really want to put your most precious thing in a bargain car seat or pushchair that is unsafe.?
You get what you pay for!
Paul Robinson, Bedford, England
Although I agree in principle with what some of the posters are saying here, E Bay was not set up for independant stores to sell on, thus saving them setting up there own web sites, so you could say the independants are being greedy too by cutting the costs of administering their own sites!
Pete, St Albans, England
Because in THIS window the shop owner, who pays higher rents and taxes, spends his time demonstrating products to people who have no compunction about then buying from THAT window where they don't have the same overheads, aren't closely monitored, so can undercut competitors. This was inevitable.
Joanne, Exeter, UK
The manufactures are the owners of the product. They have the right to dictate how THEIR product is sold. If stores don't like it don't sell the prams.
Porter, Hull,
Retail margins in Britain are a scandal and have been for decades. Anything that breaks that cartel is well worth pursuing.
Colin, Shrewsbury, UK
So Mc Claren sells inferior products in countries other than the UK? Interesting to know as I don't live in the UK. These UK companies want to be seen as "green" but insist you use petrol, etc to buy their products in a store. If you can't buy online - boycott!
kr, france,
I have a Bugaboo but that is the last time I buy a product from that company if they really want to start tampering with the progress towards free markets in Europe. And here I thought Bugaboo was such a great company...
Howard, London, UK
Manufacturers and the high street have formed an unholy alliance to inflate prices to produce 'prestige' brands. Its only now that they are losing market share to the honest brokers on the internet that they are throwing their "toys out of their prams"!
Phil, Epsom, UK
Whilst there is no doubt that ebay allows scammers and fakes to flood it's site I think it's unfair to brand all on line sellers with the same brush.I think these particular firms are merely safe guarding their high profits under the guise of protecting the customers.Ebay is killing itself anyway.
kevin, Lowestoft, UK
Isn't it illegal to tell a retailer where they can sell a product? (Unless of course there are government restrictions such as with alcohol).
Rece Porter, Orlando, USA
Selling on-line is just like having another shop window.
How can the manufacturere jusitfy saying we approve of THIS window but not THAT window.
It has NOTHING to do with safety etc.
It's just about corporate GREED. How else can they justify a pushchair costing up to 10% of a WHOLE CAR!!!
Lance, Crawley, UK
This is like trying to stop the tide comming in. If they don't allow their products to be sold online then another manufacturer will step in and fill the gap.
Get your heads out of the sand guys!
David, Bawdeswell, UK
Seems like a case for the competition authorities. The benefits of online trading are that you don't have to drive to a store and that the retailler can have lower operating costs. Additionally the web gives indication of pricing levels a useful tool in the consumers armoury.
Ian Manzie, Mazamet, France