The Australian Competition and Consumer Commission (ACCC) has issued a draft determination that proposes to authorise the Jewellers Association of Australia (JAA) to develop and implement a national retail tenancy database.
The database would provide anonymous information on JAA members’ retail leases, including tenancy rates, general location, lease area size, and terms and conditions.
The database would provide anonymous information on JAA members’ retail leases, including tenancy rates, general location, lease area size, and terms and conditions.
JAA Code of Conduct chair Colin Pocklington emphasised the “significant benefit” the database presented to jewellers.
“Access to the rental database will help jewellers determine the true market rental of shops, potentially saving them many thousands of dollars per year,” he said.
ACCC deputy chair Dr Michael Schaper agreed that the information would help JAA members assess current and future lease arrangements: “Increased access to such information can improve a tenant’s input into contractual negotiations, so that the outcomes of negotiations between landlord and tenant better reflect the commercial interests of tenants.”
In addition to this, the ACCC’s draft determination identified that the database could potentially improve retail competition and result in more efficient dispute settlements.
Application remains unopposed
Interestingly, the ACCC did not receive any objections during its initial evaluation of the JAA’s application, despite approaching 69 parties that could be affected. These included JAA members and non-members; leasing data providers; landlord, retail and consumer associations; and government bodies.
Application remains unopposed
Interestingly, the ACCC did not receive any objections during its initial evaluation of the JAA’s application, despite approaching 69 parties that could be affected. These included JAA members and non-members; leasing data providers; landlord, retail and consumer associations; and government bodies.
Pocklington said the JAA was “very surprised” that the application had not been opposed by any major shopping centres, which have often been accused of setting high tenancy costs – particularly for jewellery retailers.
He added that the lack of objections meant the ACCC did not expect any opposition to the current proposal.
The consumer watchdog is now accepting submissions for comments regarding the draft determination. A final decision will be made after the submission close date on 13 October.
The JAA has been working to establish a national retail tenancy database since early 2013 and applied for ACCC authorisation in July this year.
According to the ACCC, having authorisation “provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (2010)”.
Under the current proposal, authorisation would be granted for the maximum approval term of fiv