Competitor telling supplier not to deal with me
Discussion
Hi
I've been in the strange position over the last couple of weeks where a competitor has contacted a number of our suppliers (we both use many similar suppliers) and told them not to deal with me, or the supplier will lose the competitor's business.
They are a large PLC and the chap who looks after the products that are the same as we sell, is an arse.
Is there anything I can do (legally)?
I've been in the strange position over the last couple of weeks where a competitor has contacted a number of our suppliers (we both use many similar suppliers) and told them not to deal with me, or the supplier will lose the competitor's business.
They are a large PLC and the chap who looks after the products that are the same as we sell, is an arse.
Is there anything I can do (legally)?
AC123 said:
Hi
I've been in the strange position over the last couple of weeks where a competitor has contacted a number of our suppliers (we both use many similar suppliers) and told them not to deal with me, or the supplier will lose the competitor's business.
They are a large PLC and the chap who looks after the products that are the same as we sell, is an arse.
Is there anything I can do (legally)?
Try and get any proof from your supplier but dont tell them anything just be nice along the lines of "ok so tell me what needs doing" etc once you have ANYTHING your untouchable.I've been in the strange position over the last couple of weeks where a competitor has contacted a number of our suppliers (we both use many similar suppliers) and told them not to deal with me, or the supplier will lose the competitor's business.
They are a large PLC and the chap who looks after the products that are the same as we sell, is an arse.
Is there anything I can do (legally)?
DSLiverpool said:
If they stop supply demand a reason in writing as you have established a trading relationship and it carries some weight if broken illegally.
Does it ?Apart from "protected characteristic" issues surely I can trade with whoever I choose?
I can't see any contract being suggested and surely even if the Supplier can be forced to provide OP with the goods, they can just jack up the prices 1000% ?
Countdown said:
Does it ?
Apart from "protected characteristic" issues surely I can trade with whoever I choose?
I can't see any contract being suggested and surely even if the Supplier can be forced to provide OP with the goods, they can just jack up the prices 1000% ?
If you have a long standing business relationship and cease supply after your partner (customer) has made investment in the venture they have enough gravitas to give you a hard time legally unless specific breaking of terms (with warning letters) has taken place. I am not saying the client would win but it would cause genuine issue.Apart from "protected characteristic" issues surely I can trade with whoever I choose?
I can't see any contract being suggested and surely even if the Supplier can be forced to provide OP with the goods, they can just jack up the prices 1000% ?
AC123 said:
Hi
I've been in the strange position over the last couple of weeks where a competitor has contacted a number of our suppliers (we both use many similar suppliers) and told them not to deal with me, or the supplier will lose the competitor's business.
They are a large PLC and the chap who looks after the products that are the same as we sell, is an arse.
Is there anything I can do (legally)?
IT is an Unfair business practice.I've been in the strange position over the last couple of weeks where a competitor has contacted a number of our suppliers (we both use many similar suppliers) and told them not to deal with me, or the supplier will lose the competitor's business.
They are a large PLC and the chap who looks after the products that are the same as we sell, is an arse.
Is there anything I can do (legally)?
Is there an Office of Fair Trading for the products which you trade in?
Countdown said:
Apart from "protected characteristic" issues surely I can trade with whoever I choose?
I'm afraid this is the nub of the matter. There are a very few number of protected supply type arrangement in critical sectors such as pharma and medical but for the rest of us, it's all part of the joy of business I'm afraid.AC123 said:
Hi
I've been in the strange position over the last couple of weeks where a competitor has contacted a number of our suppliers (we both use many similar suppliers) and told them not to deal with me, or the supplier will lose the competitor's business.
They are a large PLC and the chap who looks after the products that are the same as we sell, is an arse.
Is there anything I can do (legally)?
How do you know this is happening?I've been in the strange position over the last couple of weeks where a competitor has contacted a number of our suppliers (we both use many similar suppliers) and told them not to deal with me, or the supplier will lose the competitor's business.
They are a large PLC and the chap who looks after the products that are the same as we sell, is an arse.
Is there anything I can do (legally)?
It could be construed as anti-competitive behaviour, so if you know it is happening you perhaps you should report it:
https://www.gov.uk/government/publications/report-...
Having hard evidence will help enormously, even the testimony of one or more of your suppliers will help.
Being a "large PLC" the CMA may well investigate your complaint.
An investigation should at least get their buyer (who you describe as an arse) serious grief from his management ... or best case, might even cost him his job.
Edited by sgrimshaw on Tuesday 17th October 17:06
KevinCamaroSS said:
mondeoman said:
If you sell it and he sells it, then he stops selling it, because he wont buy it, surely you end up selling more and he sells less, but the man'f still sells the same.?
So he's the one who loses?
Nuts
Exactly my thoughts too.So he's the one who loses?
Nuts
There's little upside for the large corporate in economic terms to having small competitors cut out. Small competitors usually deliver an economic benefit to a major player as more goods being bought from the supplier can lead to being able to squeeze that supplier more and smaller competitors inefficient marketing tends to also deliver a sales increase for the product.
What may in fact be happening is that the low level manager responsible for the sales figures of that product is on a performance bonus and thinks that having you cut out will boost his figures in the short run and help him hit his targets. I very much doubt that anyone senior to him is aware of what he is doing and those people will probably understand the long term beneficial economics to their company of not doing this. Ergo, a polite letter to the this chaps divisional director asking why his firm is doing this could nip it in the bud rapidly. As others have said, doing anything on just heresay is pointless though.
What may in fact be happening is that the low level manager responsible for the sales figures of that product is on a performance bonus and thinks that having you cut out will boost his figures in the short run and help him hit his targets. I very much doubt that anyone senior to him is aware of what he is doing and those people will probably understand the long term beneficial economics to their company of not doing this. Ergo, a polite letter to the this chaps divisional director asking why his firm is doing this could nip it in the bud rapidly. As others have said, doing anything on just heresay is pointless though.
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