In the media
ACCC takes action against domain registration
businesses
The ACCC has instituted proceedings against Domain Name Corp Pty
Ltd and Domain Name Agency Pty Ltd (also trading as Domain Name
Register) (the Domain companies) alleging that
they engaged in misleading or deceptive conduct and made false or
misleading representations to Australian businesses about the
domain name services they offered (11 August 2017).
More...
New car industry put on notice
The ACCC released the
draft report of its market study into Australia's new car
retailing industry. Complaints to the ACCC about new car
manufacturers have risen to more than 10,000 over the past two
years, and the draft report highlights the urgent need to address
widespread issues in the industry according to the ACCC (10 August
2017).
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ACCC targets car dealers in warranty
crackdown
Dodgy new car retailers who mislead consumers about guarantees,
warranties and fuel consumption promises are put on notice by
Australia's competition watchdog (10 August 2017).
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ACCC releases Statement of Issues on BP's proposed
acquisition of Woolworths' petrol sites
The ACCC has flagged preliminary concerns regarding the proposed
acquisition by BP Australia Pty Ltd of Woolworths Limited's
network of retail service station sites and is seeking feedback
from interested parties. The ACCC has outlined its preliminary view
that the proposed acquisition may substantially lessen competition
for the retail supply of fuel across metropolitan areas. The
transaction could see retailers face less competitive pressure to
keep their prices low (10 August 2017).
More...
The
Statement of Issues is available on the public register.
Criminal cartel investment pays off
For the first time in over 100 years in Australia, a cartelist was
convicted, sentenced and fined for a breach of the criminal law.
Despite NYK pleading guilty and cooperating with the prosecution,
the $25 million fine is the second largest ever imposed under the
Competition and Consumer Act 2010. Chairman Rod Sims said
the verdict vindicates the increased dedicated resources the ACCC
has allocated over the past three years to cartel investigations
(05 August 2017).
More...
NYK convicted of criminal cartel conduct and fined $25
million
The Federal Court has convicted Japanese shipping company Nippon
Yusen Kabushiki Kaisha (NYK) of criminal cartel
conduct and ordered it to pay a fine of $25 million: the
second-highest imposed in ACCC history. The judgment also marks the
first successful prosecution under the criminal cartel provisions
of the Competition and Consumer Act 2010
(CCA). The fine includes a significant discount
(50%) for an early guilty plea, cooperation and contrition) (03
August 2017).
More...
judgment
court summary of the case
Holden admits to likely misleading customers about
repair rights, strikes deal with ACCC
The competition watchdog has reached a landmark agreement with
Holden, where the car manufacturer has agreed to repair rights
beyond what is compelled by the Australian Consumer Law. The
agreement with Holden is part of an ACCC "crackdown" on
car makers. The ACCC launched legal action against Ford for
allegedly misleading customers about their right to have faulty
gearboxes repaired (03 August 2017).
More...
Nurofen to pay $3.5 million compensation to customers
who bought 'misleading' pain relief
Australians who paid a premium for Nurofen's
"misleading" targeted pain relief pills can apply for
compensation after the manufacturer agreed to settle a class action
lawsuit. Reckitt Benckiser will pay $3.5 million to customers who
purchased the painkillers between 2011 and 2015. The court agreed
to raise the fine to $6 million - the highest corporate penalty
awarded for misleading conduct under the Australian Consumer Law
(03 August 2017).
More...
ACCC invites feedback on NBN Co's revised Special
Access Undertaking variation
The ACCC has published a consultation paper inviting submissions on
NBN Co's revised variation to its Special Access Undertaking
(SAU). NBN Co has revised variation includes
amended terms that respond to non-price matters raised by
stakeholders and also provided a new submission in support of its
variation, which deals more directly with some of the statements
made during the previous consultation regarding pricing (02 August
2017).
More...
The closing date for submissions on NBN Co's revised variation
is 25 August 2017. The ACCC consultation paper, NBN Co's
revised variation to its Special Access Undertaking, and related
documentation are available on the ACCC website
here.
Prysmian to pay penalty of $3.5m for engaging in cartel
conduct
The Federal Court has ordered that Prysmian Cavi E Sistemi SRL pay
a pecuniary penalty of $3.5m for cartel conduct in relation to the
supply of high voltage land cables. This follows the Court's
finding of contravention in July last year (31 July 2017).
More... (Penalty
Decision) More...
ACCC to 'up the ante' against cartels:
report
A global law firm has released data on cartel activity around the
world, predicting increased activity from Australia's corporate
regulator in the second half of 2017. The release of the report
follows a recent increase in the focus on competition law in the
academic space, with a University of Melbourne professor saying
Australian legal professionals need to be more aware of the
underlying economic principles (27 August 2017).
More...
In practice and courts, published reports
Treasury: Exposure Draft Regulations
Treasury has released on 9 August, the
Exposure Draft amendments to the Competition and Consumer
Regulations which will follow from proposed amendments to the
Act in the
Competition and Consumer Amendment (Misuse of Market Power)
Bill 2017 and the
Competition and Consumer Amendment (Competition Policy Review)
Bill 2017, both currently before Parliament. Submissions
may be made until 22 August.
Wapshott Motors Pty Ltd - Commencement of
action
Consumer Affairs Victoria has begun disciplinary proceedings in the
Victorian Civil and Administrative Tribunal (VCAT)
against Surrey Hills business Wapshott Motors Pty Ltd (ACN 107 084
560) for alleged contraventions of the Motor Car Traders Act
1986 (the Act) and its associated regulations
(03 August 2017).
More...
Cases
Commonwealth Director of Public Prosecutions v Nippon Yusen
Kabushiki Kaisha [2017]
FCA 876
This is the first criminal prosecution for a cartel related offence
since cartel conduct was criminalised by amendment to the then
Trade Practices Act 1974 (Cth) in July 2009. It arises out
of a longstanding global cartel in a market of considerable
importance to Australia: the market for the supply of ocean
shipping services for "roll-on, roll-off" cargo, mainly
cars and trucks. The particular cartel conduct the subject of the
prosecution involved giving effect to certain provisions of the
cartel arrangements insofar as they applied or related to shipping
routes to Australia. Having regard to all of the relevant features
and factors, and giving them appropriate weight, the appropriate
sentence to impose on NYK in all the circumstances is a fine of $25
million. That fine incorporates a global discount of 50% for
NYK's early plea of guilty and past and future assistance and
cooperation, together with the contrition inherent in or
demonstrated by NYK's early plea and cooperation.
Shape Shopfitters Pty Ltd v Shape Australia Pty Ltd (No
3) [2017] FCA 865
COMPETITION– misleading or deceptive conduct – ss 18
and 29(1)(g) and (h) of Australian Consumer Law –
identification of the appropriate class of persons to whom the
alleged misrepresentation was made – identification of nature
of misrepresentation – whether participants in commercial
construction industry likely to be led into error by
respondent's conduct – application dismissed.
TORTS– passing off – identification of applicant's
commercial reputation – whether respondent's business
activities using the name "Shape" threaten to damage or
otherwise adversely affect that reputation and goodwill –
application dismissed.
TRADE MARKS – claim that respondent's mark is
"deceptively similar" to the registered trade mark of the
applicant – identification of relevant class of persons
– whether commercial construction industry is
"specialised" – discussion of distinction between
"wonderment" and being led into "error" –
application dismissed. Competition and Consumer Act 2010
(Cth) Sch 2, Australian Consumer Law, ss 18, 29.
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