Konges Sløjd ApS has accepted a fine notice of DKK 1.8 million for having unlawfully asked a reseller to stick to the recommended retail price without giving any discounts. In addition, a senior employee has accepted a personal fine notice of DKK 100,000.
In 2020, the Danish Competition and Consumer Authority received an inquiry indicating that Konges Sløjd, which is a manufacturer of children’s clothes and furniture, had violated the Competition Act. The Competition Council reported the matter to the Public Prosecutor for Serious Economic and International Crime, which has investigated the matter.
Konges Sløjd's violation of the competition act
The case documents show that Konges Sløjd has attempted to make a reseller stick to the recommended retail prices without giving any discounts. The company has thus violated the prohibition of the Competition Act against binding resale prices, according to which resellers must be free to fix their selling prices. The violation took place from the end of 2018 to the beginning of 2020.
Size of the fine
Fixing binding resale prices is a serious violation of the competition rules. In general, it will result in a basic fine of DKK 4 million for companies and DKK 100,000 as personal fines. Therefore, the fine of DKK 1.8 million to the company is low whereas the personal fine to a senior employee is equivalent to the basic amount. When fixing the fine, regard is had to the gravity and duration of the violation as well as the company's turnover, which may have influence on the size of the fine. However, this does not appear from the case.