Australian Competition and Consumer Commission v TF Woollam & Son Pty Ltd (No 2) [2011] FCA 1216

Australian Competition and Consumer Commission v TF Woollam & Son Pty Ltd (No 2) [2011] FCA 1216

The respondents, through the giving and receipt of cover prices in the tender process for government building projects, engaged in conduct which constituted price-controlling and substantially lessened competition contrary to s 45 of the Trade Practices Act 1974 (Cth); further, their conduct included misleading or deceptive representations contrary to s 52 of the Act. Although no monetary loss was established and the conduct was ad hoc rather than characteristic of major cartels, penalties must be imposed for general deterrence. Injunctive and ancillary relief were not justified due to the unlikelihood of repetition and lack of additional deterrence.

Jurisdiction
Australia
Judgment Date
21 October 2011
Procedural Posture
Civil Penalty Proceedings Under the Trade Practices Act 1974 (cth) / Judgment and Penalty Orders After Hearing and Findings on Liability
Outcome
Declarations made as to contraventions; pecuniary penalties imposed; costs ordered; injunctive and ancillary relief declined except as to declaratory relief.
Legal Topics
['price Controlling Conduct' 'collusive Tendering' 'cover Pricing' 'misleading or Deceptive Conduct' 'pecuniary Penalties' 'declarations' 'costs']
['competition Law' 'consumer Protection Law'] ['price Controlling Conduct' 'collusive Tendering' 'cover Pricing' 'misleading or Deceptive Conduct' 'pecuniary Penalties' 'declarations' 'costs']

Case Brief

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Procedural Posture

Civil Penalty Proceedings Under the Trade Practices Act 1974 (cth) / Judgment and Penalty Orders After Hearing and Findings on Liability

Legal Issues

  1. 1 ['Whether respondents engaged in price-controlling and collusive tendering conduct contrary to s 45 of the Trade Practices Act 1974 (Cth)' 'Whether misleading or deceptive conduct contravened s 52 of the Trade Practices Act 1974 (Cth)' 'Assessment and quantum of pecuniary penalty under s 76 of the Act' 'Appropriateness of injunctive and ancillary relief']

Ratio Decidendi

The respondents, through the giving and receipt of cover prices in the tender process for government building projects, engaged in conduct which constituted price-controlling and substantially lessened competition contrary to s 45 of the Trade Practices Act 1974 (Cth); further, their conduct included misleading or deceptive representations contrary to s 52 of the Act. Although no monetary loss was established and the conduct was ad hoc rather than characteristic of major cartels, penalties must be imposed for general deterrence. Injunctive and ancillary relief were not justified due to the unlikelihood of repetition and lack of additional deterrence.

Court Disposition

Declarations made as to contraventions; pecuniary penalties imposed; costs ordered; injunctive and ancillary relief declined except as to declaratory relief.

Orders

  • ['Woollam to pay $450,000 pecuniary penalty in instalments to the Commonwealth.' 'Kelly to pay $600,000 pecuniary penalty in instalments to the Commonwealth.' 'Carmichael to pay $250,000 pecuniary penalty in instalments to the Commonwealth.' 'Mr Murphy to pay $30,000 pecuniary penalty in $5,000 monthly instalments.'...