Case:

The Federal Court declared that Rhonwood Pty Ltd (which previously operated the Walkabout Tavern), Woolworths SA and the Arnhem Club contravened the price-fixing provisions of the TPA when they made an agreement not to discount VB beer, Jim Beam bourbon and Berri Cask riesling between 1997 and 1999.

Keywords:

Trade practices, price fixing

Reference:

Undertaking date 16th December 2002.

Industry:

Alcoholic beverages retailing

Relevant laws:

Section 45(2)(a)(ii) and 45(2)(b)(ii) of the Trade Practices Act 1974

Summary:

Woolworths S.A. admitted to having breached the price fixing provisions of the Act by making and giving affect to an agreement with the Arnhem Club Incorporated and Rhonwood Pty Ltd to cease discounting certain take-away alcohol products in Nhulunbuy N.T. The agreement was allegedly made in January/February 1997 and terminated in August 1999. This Undertaking accompanies Court orders in the matter which provide for injunctions to prevent its repetition.

The Undertaking provides for:

• the donation of $150,000 to the Nambara School Council, (Yirrkala CEC), on the Gove Peninsula for the purpose of an alcohol harm reduction, prevention, education or rehabilitation programme in Nhulunbuy, and the surrounding communities.
• the upgrade and maintenance of a Trade Practices compliance programme in accordance with Australian Standard AS 3806 to ensure, so far as reasonably possible, the company and it¡¦s relevant employees are not involved in future contraventions of the Act.
• the provision of continuing assistance and cooperation to the ACCC if requested.
  

The Federal Court ordered injunctions against Woolworths and The Arnhem Club and costs. The Court noted that enforceable undertakings were accepted by the ACCC that $150 000 be paid by each of them to an alcohol prevention program in Nhulunbuy. Rhonwood consented to court orders and has given a court-enforceable undertaking to provide $85,000 towards alcohol rehabilitation in the Nhulunbuy area.

For the latest information on ACCC administrative decisions, check out the public registers section of the ACCC¡¦s new website at www.accc.gov.au