Are Big-Box Outlets Out to Shut Down eBay?
Monday, December 08, 2008
Auctioneer cites threat from "entrenched retail" interests
Is Big Retail out to stick it to eBay? One eBay executive said last week that the answer is yes, expressing his view that "entrenched retail interests" see the choice and low pricing brought to the marketplace by eBay (and other online discount sources) as a threat that must be squelched.
At issue is Retail Price Management (RPM). According to AuctionBytes.com, "the hubbub is over the Leegin Supreme Court ruling that overturned a law that had prohibited manufacturers from punishing retailers for selling at discounted prices."
eBay's lobbyist joined retailers and antitrust experts in Washington, D.C. on Thursday to discuss the RPM, calling it "price fixing." eBay went so far as to distribute a video to the media that outlines its position.
That video is featured on a web site called Protect Consumer Choice. Besides the video, the site outlines its thesis in text, starting as follows:
"There is a multi-million dollar, coordinated campaign underway to push small business off the Internet, brought to you by the same lobby who already steamrolled Main Street America.
"How are they doing it? By using everything from selective distribution or "no eBay" contractual clauses to Retail Price Fixing to accusing small online retailers of leading a life of crime."
The American Antitrust Institute issued a press release on the matter, and quotes eBay Vice President of Global Government Relations Tod Cohen: "For the small businesses that have a kitchen-table for a boardroom - and smarts and sweat for a line of credit - the Internet is the way to break through to the consumer and give them choice with low prices and quality products. But make no mistake. Entrenched retail interests see those choices as a threat - and they will use the courts and business arrangements to squelch challenges to their very comfortable status quo."
So what do you think? At a time when many small business owners feel they are being pushed off of eBay and blame the company for it, eBay is claiming that Big-Box retailers are to blame for the decline in opportunities for small business owners on its space. How does all of this strike you? How much say-so should companies have over the resale price of their goods? What ideas do you have for fixing this? Please post your comments.
Is Big Retail out to stick it to eBay? One eBay executive said last week that the answer is yes, expressing his view that "entrenched retail interests" see the choice and low pricing brought to the marketplace by eBay (and other online discount sources) as a threat that must be squelched.
At issue is Retail Price Management (RPM). According to AuctionBytes.com, "the hubbub is over the Leegin Supreme Court ruling that overturned a law that had prohibited manufacturers from punishing retailers for selling at discounted prices."
eBay's lobbyist joined retailers and antitrust experts in Washington, D.C. on Thursday to discuss the RPM, calling it "price fixing." eBay went so far as to distribute a video to the media that outlines its position.
That video is featured on a web site called Protect Consumer Choice. Besides the video, the site outlines its thesis in text, starting as follows:
"There is a multi-million dollar, coordinated campaign underway to push small business off the Internet, brought to you by the same lobby who already steamrolled Main Street America.
"How are they doing it? By using everything from selective distribution or "no eBay" contractual clauses to Retail Price Fixing to accusing small online retailers of leading a life of crime."
The American Antitrust Institute issued a press release on the matter, and quotes eBay Vice President of Global Government Relations Tod Cohen: "For the small businesses that have a kitchen-table for a boardroom - and smarts and sweat for a line of credit - the Internet is the way to break through to the consumer and give them choice with low prices and quality products. But make no mistake. Entrenched retail interests see those choices as a threat - and they will use the courts and business arrangements to squelch challenges to their very comfortable status quo."
So what do you think? At a time when many small business owners feel they are being pushed off of eBay and blame the company for it, eBay is claiming that Big-Box retailers are to blame for the decline in opportunities for small business owners on its space. How does all of this strike you? How much say-so should companies have over the resale price of their goods? What ideas do you have for fixing this? Please post your comments.
posted by Chris and Frank at 8:02 PM
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