POTENTIAL VIOLATION OF COMPETITION ACT & CPA – RESELLERS BEWARE

I am writing this as a public warning to all IT Resellers in South Africa. Do not open an account with Esquire. Their current business model appears to operate in direct contravention of standard wholesale practices and raises serious red flags regarding the Competition Act No. 89 of 1998 and the Consumer Protection Act (CPA) No. 68 of 2008.

The Issue: Esquire markets itself as a "Trade-Only Distributor," inducing businesses to sign up under the pretense of wholesale pricing. However, their pricing structure is identical to direct-to-consumer retail stores.

Example: ASUS X1504VA Laptop.

Retail Market Price: R6999 (Makro/Incredible Connection).

Esquire "Wholesale" Price: R6999.

Legal Concerns for Resellers:

Margin Squeeze (Competition Act): By selling to resellers at the same price available to the public, Esquire is engaging in what can be described as a "margin squeeze" (an exclusionary act). This prevents downstream resellers from trading effectively, as it is mathematically impossible to add a margin and compete.

Misleading Representations (CPA Section 41): It is a deceptive practice to represent oneself as a "Wholesale Distributor" to lure business clients when you are effectively operating as a retailer. We were assured strict trade-only access, yet the pricing offers zero trade benefit.

Unconscionable Conduct (CPA Section 40): Knowingly signing up resellers and encouraging them to "update feeds" for stock that is priced at full retail value—wasting our time and resources—borders on unconscionable commercial conduct.

Conclusion: We have suspended all orders. If you are a legitimate business, do not expose yourself to this. You will find yourself unable to compete and legally squeezed out of the market. Report these practices to the Competition Commission if you have had a similar experience.