I have been talking with a newsagent colleague who has a dispute with a magazine distributor over the treatment of credits for returns. They have good documentation to support their case yet the distributor, acting as judge and jury, has refused their claim.
The newsagent, on my advice, took the matter to a state government arbitration process. This requires both sides to agree to independent mediation.
Many months on from the mediation application by the newsagent, the distributor has not responded. This has left the newsagent’s application for mediation in limbo.
This lack of response to an independent mediation is like commercial blackmail against the newsagent as the potential impact on their business of the issue not being resolved many many times the impact on the magazine distributor.
If the magazine distributor has nothing to hide they ought to submit themselves to mediation by an independent mediator. The only downside for them is that if they do agree it sets a precedent on their participation in a forum outside of their own processes for settling disputes on returns and other contentious issues. While I understand why they would not want to set such a precedent, they need to do this to demonstrate fairness.
While there are disputed magazine returns claims by newsagents which are dubious, many which I encounter are fair and deserve swift resolution in favour of the newsagent.
Some magazine distributors have a zero tolerance when it comes to account issues. Newsagents are not permitted the right to zero tolerance on misbehaviour by magazine distributors. I’ll explore that further in another blog post.
What the newsagent is seeking by requesting mediation through the state government arbitration process is to have the matter considered in a forum which is fair and equal to both sides. This is just. The apparent refusal of the distributor to participate is unjust.
For the distributor this is a small issue. They can afford to lose the account. For the newsagent it is a serious and expensive matter. It is this very issue which the federal government said it would address in its changes to the Trade Practices Act. Sadly, those changes were cut by the government last year. Small business is the poorer for this decision by the government.
Hopefully, the newsagent will get the matter discussed in front of the independent mediator as they seek. That this opportunity is blocked by the distributor ought to be of concern to all newsagents.
This experience should not stop newsagents taking magazine distributor issues to other forums such as the Consumer Tenancy and Traders Tribunal in NSW or the Small Business Commissioner in Victoria. We need to fight for our rights.
Our landlord at Forest Hill Chase is giving our ink promotion sign an excellent run in the centre. This week, the sign faces shoppers as they walk through the entrance near our shop. It is between us and Australia Post. In the background you can see Dick Smith. Aussie Post and Dick Smith are key competitors in the ink space.
