Australian Competition and Consumer Commission v Australian Safeway Stores Pty Limited (No 4) [2006] FCA 21

Australian Competition and Consumer Commission v Australian Safeway Stores Pty Limited (No 4) [2006] FCA 21

Appropriate, substantial penalties must be imposed on Safeway and Mr Jones to reflect the seriousness and recurrence of contraventions of the Trade Practices Act (misuse of market power and price-fixing), with the need for deterrence, consideration of the totality and parity principles, management involvement, and...

Source-derived case information.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Australian Safeway Stores Pty Limited; Second Respondent: George Weston Foods Limited; Third Respondent: Mark Jones; Fourth Respondent: Bernie Brookes
Jurisdiction
Australia
Judgment Date
31 January 2006
Procedural Posture
Civil / Penalty Determination Following Remittal by Full Court of the Federal Court
Outcome
Pecuniary penalties imposed on Safeway and Mark Jones for contraventions of the Trade Practices Act.
Legal Topics
Misuse of Market Power, Price Fixing, Pecuniary Penalties, Trade Practices Act Contravention, Totality Principle, Parity Principle, Corporate Compliance, Deterrence
Competition Law Misuse of Market Power Price Fixing Pecuniary Penalties Trade Practices Act Contravention Totality Principle Parity Principle Corporate Compliance +1 more

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Parties

Australian Competition and Consumer Commission

Applicant

Australian Safeway Stores Pty Limited

First Respondent

George Weston Foods Limited

Second Respondent

Mark Jones

Third Respondent

Bernie Brookes

Fourth Respondent

Procedural Posture

Civil / Penalty Determination Following Remittal by Full Court of the Federal Court

Legal Issues

  1. 1 What is the appropriate pecuniary penalty for identified contraventions of the Trade Practices Act by Safeway and Mark Jones?
  2. 2 How should the totality and parity principles be applied to the penalties?
  3. 3 Is the involvement of senior management relevant to the penalty?

Ratio Decidendi

Appropriate, substantial penalties must be imposed on Safeway and Mr Jones to reflect the seriousness and recurrence of contraventions of the Trade Practices Act (misuse of market power and price-fixing), with the need for deterrence, consideration of the totality and parity principles, management involvement, and ineffectiveness of compliance programs outweighing arguments for reduction or parity with other cases. The penalties fixed are lower than sought by the Commission but higher than the respondent contended, being $900,000 (Preston Market, s 45), $1.9 million (each for Albury and Cheltenham incidents), $2.1 million (each for Frankston and Vermont incidents) for Safeway, and $50,000...

Court Disposition

Pecuniary penalties imposed on Safeway and Mark Jones for contraventions of the Trade Practices Act.

Orders

  • First respondent (Safeway) pay $900,000 for contravention of s 45(2)(a)(ii) (Preston Market)
  • First respondent pay $1,900,000 for contravention of s 46(1)(c) at Albury and Wodonga