Australian Competition and Consumer Commission v Colgate-Palmolive Pty Ltd (No 3) [2016] FCA 676

Australian Competition and Consumer Commission v Colgate-Palmolive Pty Ltd (No 3) [2016] FCA 676

Woolworths Limited, through the actions of its employee and as admitted for the purpose of these proceedings, was knowingly concerned in two contraventions of s 45(2) of the Trade Practices Act 1974 (Cth), namely, participation in and giving effect to the Withhold Supply Understanding between major laundry detergent manufacturers. Given the seriousness of the conduct, the pecuniary benefit derived, the objectives of deterrence, Woolworths' cooperation, and the agreement of sophisticated parties on penalty and compliance relief, the agreed penalty of $9 million and compliance orders are appropriate and so ordered.

Parties
Plaintiff: Australian Competition and Consumer Commission; Fourth Respondent: Woolworths Limited; Second Respondent: PZ Cussons Australia Pty Ltd; Other: Unilever Australia Limited
Jurisdiction
Australia
Judgment Date
03 June 2016
Procedural Posture
Civil / Judgment and Orders After Admissions and Consent Submissions on Penalty
Outcome
Orders made in terms sought by consent; pecuniary penalty imposed; updated compliance program required; cost order made; other claims against Woolworths dismissed.
Legal Topics
Restrictive Trade Practices, Civil Penalties, Compliance Programs, Admissions, Cartel Conduct, Declarations, Costs
Competition Law Commercial Law Consumer Law Restrictive Trade Practices Civil Penalties Compliance Programs Admissions Cartel Conduct +2 more

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Parties

Australian Competition and Consumer Commission

Plaintiff

Woolworths Limited

Fourth Respondent

PZ Cussons Australia Pty Ltd

Second Respondent

Unilever Australia Limited

Other

Procedural Posture

Civil / Judgment and Orders After Admissions and Consent Submissions on Penalty

Legal Issues

  1. 1 Whether Woolworths Limited was knowingly concerned in contraventions of s 45(2) of the Trade Practices Act 1974 (Cth) by Colgate, Cussons and Unilever
  2. 2 Whether the consent orders including pecuniary penalties and compliance programs are appropriate in the circumstances

Ratio Decidendi

Woolworths Limited, through the actions of its employee and as admitted for the purpose of these proceedings, was knowingly concerned in two contraventions of s 45(2) of the Trade Practices Act 1974 (Cth), namely, participation in and giving effect to the Withhold Supply Understanding between major laundry detergent manufacturers. Given the seriousness of the conduct, the pecuniary benefit derived, the objectives of deterrence, Woolworths' cooperation, and the agreement of sophisticated parties on penalty and compliance relief, the agreed penalty of $9 million and compliance orders are appropriate and so ordered.

Court Disposition

Orders made in terms sought by consent; pecuniary penalty imposed; updated compliance program required; cost order made; other claims against Woolworths dismissed.

Orders

  • The application for declaratory relief is adjourned until finalisation of proceedings against the Second Respondent, with notice upon finalisation.
  • Liberty to apply on 7 days' notice on finalisation of proceedings.