The Fair Trade Commission (FTC) found that Dunlop, which imports and distributes Japanese golf brands including XXIO and Srixon, had enforced minimum selling prices between 2020 and 2023, threatening dealers with supply cuts, financial penalties, and contract terminations if they failed to comply.
According to the commission, the company deployed undercover investigators posing as customers to monitor compliance, conducting these covert inspections as many as nine times annually. Dunlop also pressured retailers not to resell products to unauthorized dealers, a practice regulators deemed an illegal restriction on price competition.
Retailers caught violating the pricing policy faced immediate consequences, including disruptions in the supply of popular models and reductions in financial support, the FTC said.
“This action will promote free price competition among golf retailers,” an FTC official said. “We expect consumers will now be able to purchase golf clubs at more affordable prices.”
The penalty underscores the regulator’s stricter approach following a 2009 case involving six golf equipment sellers engaged in similar price-fixing practices. At the time, Dunlop avoided detection.
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