FTC inspects baby stroller makers over price fixing

April 18, 2018

Tokyo- The Japan Fair Trade Commission conducted on Wednesday on-site inspections of baby goods makers Combi Corp. and Aprica Children's Products GK on suspicion of making retailers sell their products at set prices to avoid discounts, Jiji Press learned the same day.

The two companies are suspected of instructing retailers to set the selling prices of their strollers, child car seats and baby slings at fixed levels from at least several years ago, in violation of the antimonopoly law, according to informed sources.

They allegedly threatened to raise delivery prices or stop supplying products if retailers did not follow their instructions, the sources said.

Under the antimonopoly law, manufacturers are banned from restricting the pricing of distributors because such an act may deprive wholesalers and retailers of chances to set prices freely, keeping product prices high.

The Japanese market for child care-related goods is worth tens of billions of yen.

Combi and Aprica are rivals for the industry's top position. Together, they hold an 80 pct share in the Japanese market of baby strollers.

Although the dwindling number of children in Japan acts as a headwind for the industry, the amount of money spent on child care-related goods per child is on the rise, buoyed by increases in double-income households and financial support from grandparents.

"High-end and high-priced goods are selling well," an industry official said.

Combi and Aprica both said they will fully cooperate with the FTC's inspections. Jiji Press