The Australian Competition and Consumer Commission (ACCC) granted authorisation for the Jewellers Association of Australia (JAA) to establish and operate the retail tenancy database until 31 December 2019 – the maximum approval term available.
The database will provide “de-identified” information about the retail leases of JAA members, including tenancy rates, general location, lease area size and terms and conditions. This data can be used when assessing current and future lease arrangements.
“Access to information is an important factor for tenants when discussing contractual terms and conditions with landlords,” ACCC deputy chair Dr Michael Schaper said. “Increasing a tenant’s access to such information can improve their input into contractual negotiations. This can lead to outcomes that better reflect the commercial interests of tenants.”
JAA executive director Amanda Hunter said that the association was now focused on implementing a suitable system and program for the database.
She also further explained the benefits that such a project would offer the industry.
“We look forward to this initiative providing outcomes that will help our members handle with confidence that often difficult time of negotiating a lease. For many, it will also have a significant impact on their bottom line, thus strengthening their business and the industry as a whole,” Hunter said.
As previously reported by Jeweller, the consumer watchdog announced its preliminary approval for the database in September this year.
It was stated at the time that the ACCC did not receive any objections to the application during the initial evaluation, despite approaching 69 parties that could be affected – including landlord, retail and consumer associations.
Schaper explained that any potential public impact would be limited due to the fact that the database involved voluntary participation and only offered information for guidance purposes.
“The JAA members will continue to individually negotiate and enter into leases that best suit their individual circumstances,” Schaper said.
The JAA has been working to establish the database since early 2013, having applied for ACCC authorisation in July this year.
It has been widely reported that jewellers pay much higher rents than other retail categories, which has resulted in the closure of a number of jewellery stores in recent years.
The operation of the database will be reassessed at the end of the approval term in 2019.
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