Australian Competition & Consumer Commission v George Weston Foods Ltd [2000] FCA 690

Australian Competition & Consumer Commission v George Weston Foods Ltd [2000] FCA 690

The Court found that George Weston, through its employees including senior management, intentionally attempted to induce two retailers to enter into a price fixing arrangement in breach of s 45(2) of the Trade Practices Act 1974 (Cth). This attempt constituted one contravention, not two, and a significant penalty was warranted considering the seriousness of the conduct, managerial involvement, the failure of the compliance regime, George Weston's size, and general deterrence, offset by an admission and cooperation.

Jurisdiction
Australia
Judgment Date
25 May 2000
Procedural Posture
Civil / Penalty Judgment Following Admission of Attempt to Contravene Statute
Outcome
Pecuniary penalty imposed
Legal Topics
['attempt to Induce Price Fixing' 'penalties Under the Trade Practices Act' 'corporate Compliance Regimes']
['trade Practices Law' 'competition Law'] ['attempt to Induce Price Fixing' 'penalties Under the Trade Practices Act' 'corporate Compliance Regimes']

Case Brief

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Procedural Posture

Civil / Penalty Judgment Following Admission of Attempt to Contravene Statute

Legal Issues

  1. 1 ['Whether George Weston and its employees attempted to induce price fixing under s 45(2) of the Trade Practices Act 1974 (Cth)' 'Whether the attempt constituted one or more contraventions for penalty purposes' 'What penalty is appropriate having regard to the purpose and factors under s 76 of the Act']

Ratio Decidendi

The Court found that George Weston, through its employees including senior management, intentionally attempted to induce two retailers to enter into a price fixing arrangement in breach of s 45(2) of the Trade Practices Act 1974 (Cth). This attempt constituted one contravention, not two, and a significant penalty was warranted considering the seriousness of the conduct, managerial involvement, the failure of the compliance regime, George Weston's size, and general deterrence, offset by an admission and cooperation.

Court Disposition

Pecuniary penalty imposed

Orders

  • ['First respondent, George Weston Foods Limited, to pay a pecuniary penalty of $900,000.']