survival of her business. Advise Miko as to her options for challenging Beep Q’ discounting under the Competition and Consumer Act 2010 (Cth).
Miko runs a cosmetics store in Melbourne. A good part of Miko’s revenue comes from the popular MM foundation line. It has an extremely loyal customer base who often buy other products when they come into the shop to purchase their foundation.
Earlier this year, a ‘Beep Q’ opened up in down the road selling cosmetics at low prices. Beep Q is a large national chain with a 30% share of the Australian cosmetics market. They have a history of opening shops near to existing small shops and driving them out of business through heavy discounting.
Beep Q stock all of the MM foundation line and, for the last 3 months, have been selling these products for 35% below RRP and 10% below the price that Miko pays for them wholesale (including delivery). Since they opened, Miko has seen her sales of these products plummet and it is starting to make her worried about the survival of her business.
Advise Miko as to her options for challenging Beep Q’ discounting under the Competition and Consumer Act 2010 (Cth).
Step by step
Solved in 3 steps
