Australian Competition & Consumer Commission v Mayo International Pty Ltd & Ors [1998] FCA 808

Australian Competition & Consumer Commission v Mayo International Pty Ltd & Ors [1998] FCA 808

Mayo International engaged in contraventions of s 48 of the Trade Practices Act by attempting to induce, and in some instances inducing, franchisees not to discount its products below specified retail prices through direct and indirect communications, including via intermediaries. Withdrawal of discounts constituted supplying on disadvantageous terms for the purpose of maintaining resale prices, contrary to s 96(3)(d). Certain admissions by employees as to the reasons for withdrawal of discount were made within scope of employment and admissible as admissions by the company.

Jurisdiction
Australia
Judgment Date
10 July 1998
Procedural Posture
Civil / Trial Judgment
Outcome
Liability found for contraventions of s 48 of the Trade Practices Act; judgment for the applicant; directions given for submissions on penalties and proposed orders; penalty and costs adjourned for further hearing.
Legal Topics
['resale Price Maintenance' 'trade Practices Act' 'inducement' 'admissions by Employees' 'standard of Proof' 'withholding Supply']
['competition Law'] ['resale Price Maintenance' 'trade Practices Act' 'inducement' 'admissions by Employees' 'standard of Proof' 'withholding Supply']

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Procedural Posture

Civil / Trial Judgment

Legal Issues

  1. 1 ['Whether Mayo International Pty Ltd engaged in resale price maintenance contrary to Part IV of the Trade Practices Act 1974 (Cth)' "Meaning of 'induce' under s 96(3)(b) of the Act" 'Whether communications with an intermediary may constitute contravening conduct under s 96(3)(b)' 'Whether admissions by employees about company policy are admissible against the company']

Ratio Decidendi

Mayo International engaged in contraventions of s 48 of the Trade Practices Act by attempting to induce, and in some instances inducing, franchisees not to discount its products below specified retail prices through direct and indirect communications, including via intermediaries. Withdrawal of discounts constituted supplying on disadvantageous terms for the purpose of maintaining resale prices, contrary to s 96(3)(d). Certain admissions by employees as to the reasons for withdrawal of discount were made within scope of employment and admissible as admissions by the company.

Court Disposition

Liability found for contraventions of s 48 of the Trade Practices Act; judgment for the applicant; directions given for submissions on penalties and proposed orders; penalty and costs adjourned for further hearing.

Orders

  • ['Directions for filing written submissions on complicity of individual respondents prior to penalty argument.' 'Adjournment of penalty and costs to a date to be fixed.' 'Directions for filing of proposed orders and outlines of argument.']