Retail giant accused of dumping
Suppliers and manufacturers have filed complaints with the Internal Trade Department, accusing a retail giant of dumping that is causing damage to them and the market mechanism as its prices are lower than manufacturing costs.
The department said both manufacturers and suppliers had named the same retailer, but it declined to disclose the name. Department director-general Siripol Yodmuangcharoen said the business of these manufacturers and suppliers was suffering because they could not sell goods to other retailers, who wanted them to quote the same prices as the retail giant. "The problem forced suppliers to shoulder higher burdens and made it impossible for them to sell their products to other retail operators," he said. Siripol said the department would set up a special committee to investigate the complaints. Under the department's guidelines, retailers can only sell a product below cost if the product has almost expired or is at the end of its selling season. Siripol said any retailer found to be dumping to weaken the competition could be punished under the Trade Competition Act 1999, which prescribes maximum penalties of three years' imprisonment or a Bt6-million fine or both. In addition, Siripol said the department would closely monitor the retailer's advertising of retail prices to see whether they breached dumping regulations. Meanwhile, the department plans to hold trade fairs for fresh foods and consumers goods nationwide from February 14 to 16. The fairs will not only protect consumers from overcharging during Chinese New Year but also curb inflation.
Petchanet Pratruangkrai The Nation
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