Digital Camera Resale Price Maintenance

A Japanese film and camera distribution company, trading in Australia, and one of its former employee's, have offered court-enforceable undertakings to the Australian Competition and Consumer Commission (ACCC) after being accused of resale price maintenance on one of their digital cameras.

Under its Co-operation Policy for Enforcement Matters, the Company made an application to the ACCC in relation to the employee's conduct after fears that the employee may have involved the Company in his breach of Section 48 of the Trade Practices Act 1974 (Cth). It is alleged that the employee was involved in resale price maintenance when he advised a wholesale customer of the Company's to increase the advertised price of digital cameras, which had been listed on the internet, to match the Company's trade or recommended retail price of the cameras.

After becoming aware of the employee's actions, the Company advised its remaining staff that the Trade Practices Act must be adhered to entirely. As part of the court-enforceable undertaking, the Company must now complete the following activities:

- Implement a trade practices compliance program;

- Write to all of its direct market resellers who stock the digital cameras, advising them that the company does not wish to control the price at which the cameras are sold, making resellers free to sell the product at whatever price they see to be appropriate; and

- Fully co-operate with and assist the ACCC in any legal proceedings that the ACCC may initiate against any other persons alleged to have engaged in or been involved in the conduct.

In addition to this, the accused employee has been ordered by the ACCC to complete trade practices education and training by completing a trade practices compliance course.