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Distributor of leisure weapons pays fine in settlement for resale price maintenance

04. juli 2013

On June 30, 2013, the owner of the company HG Agencies (a Danish distributor of leisure weapons) entered into a settlement with the Danish Competition and Consumer Authority for infringing section 6 of the Danish Competition Act by imposing resale price maintenance to one of the company’s dealers. Accordingly the owner of HG Agencies accepted to pay a fine of DKK 40.000 (€ 5.333).

In the period March 2012 to May 2013 HG Agencies demanded that one of the company’s dealers used the company’s indicative prices on leisure weapons from the brand ‘Browning’ as a minimum resale price to consumers.

Due to the fact that HG Agencies is a sole proprietorship it is the owner of the company – and not the company as such – who entered into the settlement and paid the fine.

According to practice, personal fines for infringing section 6 of the Danish Competition Act are of a size of DKK 25.000. However, in this case since no fine is imposed to the company in question, the Danish Competition and Consumer Authority assessed that the personal fine should be higher than normal personal fines.

In fixing the fine of DKK 40.000 the Danish Competition and Consumer Authority also took into account the size of the company’s turnover and the duration of the infringement.

The Danish Competition and Consumer Authority emphasized that it was a mitigating circumstance that the company cooperated with the competition authority during the casework.

The Danish Competition and Consumer Authority took up the case on the basis of a tip from a dealer.