On Connaught's Feather Product Restriction Outside the UK

[Len]

@Paul at Connaught is an excellent vendor. Some of the best prices you can find for everything shaving related. Likewise, shipping rates are fantastic, and even free to many places in the world when the order amount is high enough. I've taken advantage of these rates and shipping discounts, living in the US, buying soaps, jars, and enough blades to last most of a lifetime.

However, sometime last year, Connaught placed a restriction on any Feather products being sold outside the UK. This bothers me greatly, as they have been the only place I've purchased Feather blades from, and would like to continue doing so.

Why has this been done? Other vendors, both in the EU and in the US, do not restrict selling Feather products outside their home country. I am guessing that Connaught's Feather distributor has requested this action, perhaps implying that if Connaught does not cooperate, Connaught's supply might be cut off? But this is just my guess, and I'll have to leave it to @Paul to answer.

How might this situation be rectified? Well, the point may be moot in the months and years ahead, after the UK formally leaves the EU, but it may be worth noting that for the time being, restricting the sale of products by territory or location is illegal under EU law (which the UK is still formally governed by). Perhaps neither Connaught, Feather, nor their regional distributor may realize that this type of restrictive selling runs afoul of anti-competition laws, but perhaps they should know for their own protection, and it would make the potential request of Feather's distributor an illegal request. This is something Connaught might explain to Feather, should there be any concern about supply being cut off.

Below are links to legal commentary, in layman's terms, relating to this. There are many, many more such commentaries, and it may take a lawyer to wade through the precise legal statutes. However, this exact practice has warranted investigation and prosecution in Germany and France. Hopefully, by casting some light on this situation, those of us that are non-UK residents may get some resolution to this anti-competitive practice.

"any purported restriction on online sales is a serious infringement of EU competition law"

http://www.osborneclarke.com/insigh...another-warning-from-a-competition-authority/

http://www.codozasady.pl/en/restrictions-on-online-sales-in-distribution-agreements/

 

[Mr_Smartepants]

Very interesting reading. Maybe this is another clue in support of the conspiracy theory that the folks behind the OneBlade razor are trying to control the distribution of Feather blades in order to corner the market? (Just kidding!)
This may be because of internal agreements between the different blade distributors to prevent regional competition. Similar to how DVD movies are region coded? Just a thought.
I'd be interested to hear what Paul has to say on it as well.

 

[R181]

At one time manufacturers used to protect their official national importer and subsequent distribution chain in that country. As an example, years ago, if I bought a Nikon from the US and tried to get warranty repair done by Nikon Canada I was sol. You would be advised to send it back to Nikon USA for the needed repairs. That may not be the case now.

I can see manufacturers still trying to protect their official supply chains though.

Bob

 

[Mr_Smartepants]

At one time manufacturers used to protect their official national importer and subsequent distribution chain in that country. As an example, years ago, if I bought a Nikon from the US and tried to get warranty repair done by Nikon Canada I was sol. You would be advised to send it back to Nikon USA for the needed repairs. That may not be the case now.

That is still the case.

 

[R181]

That is still the case.

Was afraid of that. Some things never change.

Bob

 

[SeanC]

@Paul at Connaught is an excellent vendor. Some of the best prices you can find for everything shaving related. Likewise, shipping rates are fantastic, and even free to many places in the world when the order amount is high enough. I've taken advantage of these rates and shipping discounts, living in the US, buying soaps, jars, and enough blades to last most of a lifetime.

However, sometime last year, Connaught placed a restriction on any Feather products being sold outside the UK. This bothers me greatly, as they have been the only place I've purchased Feather blades from, and would like to continue doing so.

Why has this been done? Other vendors, both in the EU and in the US, do not restrict selling Feather products outside their home country. I am guessing that Connaught's Feather distributor has requested this action, perhaps implying that if Connaught does not cooperate, Connaught's supply might be cut off? But this is just my guess, and I'll have to leave it to @Paul to answer.

How might this situation be rectified? Well, the point may be moot in the months and years ahead, after the UK formally leaves the EU, but it may be worth noting that for the time being that restricting the sale of products by territory or location is illegal under EU law (which the UK is still formally governed by). Perhaps neither Connaught, Feather, nor their regional distributor may realize that this type of restrictive selling runs afoul of anti-competition laws, but perhaps they should know for their own protection, and it would make the potential request of Feather's distributor an illegal request. This is something Connaught might explain to Feather, should there be any concern about supply being cut off.

Below are links to legal commentary, in layman's terms, relating to this. There are many, many more such commentaries, and it may take a lawyer to wade through the precise legal statutes. However, this exact practice has warranted investigation and prosecution in Germany and France. Hopefully, by casting some light on this situation, those of us that are non-UK residents may get some resolution to this anti-competitive practice.

"any purported restriction on online sales is a serious infringement of EU competition law"

http://www.osborneclarke.com/insigh...another-warning-from-a-competition-authority/

http://www.codozasady.pl/en/restrictions-on-online-sales-in-distribution-agreements/

What you say regarding the law is indeed true, although there are a couple of important caveats to apply:

This aspect of EU competition law only applies to intra EU transactions i.e. both the prospective buyer and seller must be domiciled within the EU
Feather products in the scheme of things when looking at EU trade are immaterial. It's unlikely the relevant authorities would be interested unless someone made a lot of noise.

 

[Len]

This aspect of EU competition law only applies to intra EU transactions i.e. both the prospective buyer and seller must be domiciled within the EU

You may very well be correct about this. However, in none of my (superficial) research about this subject, have I seen that the buyer must also reside in the EU. Legal commentaries I've seen only mention that EU based sellers may not restrict their selling based on the buyer's location, wherever that may be. An intra EU transaction I've not seen mentioned. If this provision exists, I would like to see it. Assuming it does, it would at least open up sales to Feather's in the rest of EU.

Feather products in the scheme of things when looking at EU trade are immaterial. It's unlikely the relevant authorities would be interested unless someone made a lot of noise.

If I were Connaught, or any other shaving vendor, I wouldn't take the risk of flouting the law, especially considering how much "noise" us wet shavers often make about our products and vendors.

 

[Batch300]

Since the restriction on Feather products negatively impacts Connaught's revenue and profits, guessing NOT voluntary. If possible, nice to get the full story first-hand.

 

[SeanC]

You may very well be correct about this. However, in none of my (superficial) research about this subject, have I seen that the buyer must also reside in the EU. Legal commentaries I've seen only mention that EU based sellers may not restrict their selling based on the buyer's location, wherever that may be. An intra EU transaction I've not seen mentioned. If this provision exists, I would like to see it. Assuming it does, it would at least open up sales to Feather's in the rest of EU.



If I were Connaught, or any other shaving vendor, I wouldn't take the risk of flouting the law, especially considering how much "noise" us wet shavers often make about our products and vendors.

Under the EU's trademark rules, any company can import branded goods from another EU country for sale in the UK, even without the manufacturer's agreement.

But the permission of the manufacturer is usually required when importing from a non-EU country.

http://news.bbc.co.uk/1/hi/business/1261829.stm

Slightly different context, but the same legislation being applied

EU and indeed UK legislation is very, very rarely extraterritorial in nature

 

[Len]

http://news.bbc.co.uk/1/hi/business/1261829.stm

Slightly different context, but the same legislation being applied

I'm not sure this ruling applies in our case, as Connaught's regional distributor is presumably an EU/UK based distributor.

 

[SeanC]

I'm not sure this ruling applies in our case, as Connaught's regional distributor is presumably an EU/UK based distributor.

Another key point to remember is that EU (and indeed UK) law is rarely extraterritorial in nature. I don't really think there is any mileage in assuming the EU will provide protection for non EU consumers.

 

[Len]

Another key point to remember is that EU (and indeed UK) law is rarely extraterritorial in nature. I don't really think there is any mileage in assuming the EU will provide protection for non EU consumers.

Except, it is not consumers actually being represented in these lawsuits, as they are wholly being prosecuted by the agencies themselves. All it takes is enough anonymous complaints to the regulatory bodies pointing them towards the action demonstrating anti-competitive practices. These bodies will then make independent investigations once they are made aware...

 

[Lord Fatboy]

On a semi-related note, I doubt Britain will ever leave the EU, so you may be waiting a while.

 

[Paul]

I have an understanding with Feather to only sell Feather items in the UK & other British territories (Jersey etc).

I would prefer that this understanding was not required, however I do not believe that this breaches any restrictive trade rules in the UK/EU. This does not fall under anti-competitive activity such as price fixing or market sharing.

If anyone outside the USA cannot purchase FHS-10 blades or any other Feather item please email Feather: overseas@feather.co.jp

If there is no dealer in your area, or they do not offer the items you want, Feather may allow me to sell to you.