Resale Price Maintenance

A Japanese company, trading in Australia has been accused of resale price maintenance by the Australian Competition and Consumer Commission (ACCC). According to the ACCC, the Company has breached Section 48 of the Trade Practices Act 1974 (Cth), which states that, 'a corporation or other person shall not engage in the practice of resale price maintenance'. It is alleged by the ACCC that the Company breached Section 48 of the Trade Practices Act by persuading and attempting to persuade a particular retailer not to advertise certain products below the 'go price' as specified by the Company.

The National Sales Manager of the Organisation has also had proceedings filed against him by the ACCC as it is believed that he was knowingly involved in the infringements by the Company.

The proceedings will be heard in the Federal Court in Melbourne, Victoria. From these proceedings, the ACCC is seeking:

- Affirmation that the Company breached Section 48 of the Trade Practices Act and that the National Sales Manager was aware of and involved in the breach by the company;

- Rulings preventing the Company and the National Sales Manager from participating in similar conduct in the future;

- Financial penalties against the Company and the National Sales Manager;

- An order that the Company puts a trade practices compliance program in place;

- An order that the Company must write to its customers to inform them of it's resale price maintenance conduct; and

- Any costs.