Electronics giants 'pushing up online prices'

Last updated at 11:00 15 November 2005


Leading electronics companies are forcing up the price of online goods, internet traders have claimed.

Website traders are meeting today to discuss how to respond to a decision by the manufacturers to charge them more than high street stores for TVs, DVD players and other electrical products.

Electronic goods manufacturers are forcing shopping websites to pay 10pc-15pc higher prices than their high street rivals, the traders' group claims.

The dual pricing scheme, introduced by some leading electronic manufacturers, is making it difficult for e-retailers to continue to undercut high street prices.

Online traders have previously been able to sell goods for less because they do not have the expense of running a shop.

Members of the Interactive Media in Retail Group (IMRG) will meet to decide whether to "name and shame" the companies involved, which include leading household names.

James Roper, of the IMRG, said dual pricing was

forcing some online traders out of business.

"This serious abuse by a global brand of both its position and consumers' rights must be stopped

immediately.

"Twenty four million British consumers have embraced internet shopping. They are collectively investing £6billion a year in PCs and internet connections that give them their own personal shopping environments - their high street at home.

"These consumers are directly bearing many of the costs previously carried by bricks-and-mortar shops, which is a major reason for internet shopping prices being highly competitive, so it is completely inappropriate to disadvantage them through dual pricing."

Mr Roper said research from 24 European countries suggests dual pricing is only happening in Britain.

"We have found no evidence of this happening elsewhere. Lucky old Britain is uniquely enjoying this new situation," he said.

Sales of electronic goods on the internet have risen to 20pc of the total market in the past five years.

Shoppers are expected to spend £5billion online this Christmas - 9pc of all retail sales.

The Office of Fair Trading said it had received a complaint about retail pricing practices.

"We have received a complaint about that issue and we are looking into it.

"I cannot confirm any names or whether we are examining a complaint in relation to more than one manufacturer," a OFT spokeswoman said.

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