Australian Competition and Consumer Commission v Coles Supermarkets Australia Pty Ltd [2014] FCA 1405

Australian Competition and Consumer Commission v Coles Supermarkets Australia Pty Ltd [2014] FCA 1405

Coles engaged in unconscionable conduct under s 22 of the Australian Consumer Law by exploiting its superior bargaining power over smaller suppliers to extract payments and impose penalties outside agreed commercial arrangements, through threats, undue pressure and unfair tactics. The conduct was serious, deliberate and repeated, warranting significant pecuniary penalties, declarations, and undertakings for supplier redress, as jointly proposed by the parties and reflecting the seriousness of the contraventions as well as mitigating factors of cooperation and remedial action.

Jurisdiction
Australia
Judgment Date
19 December 2014
Procedural Posture
Civil (penalty Proceedings and Declaratory Relief) / Final Judgment After Admissions, With Consent Orders and S 87 B Undertakings
Outcome
Declarations of contravention made; pecuniary penalties imposed; costs ordered in favour of ACCC; undertakings accepted; proceedings otherwise dismissed.
Legal Topics
['unconscionable Conduct' 'australian Consumer Law' 'business to Business Conduct' 'supplier Relationships' 'section 22 of Acl' 'court Ordered Penalties' 'regulatory Undertakings']
['consumer Law' 'competition Law' 'corporate Law'] ['unconscionable Conduct' 'australian Consumer Law' 'business to Business Conduct' 'supplier Relationships' 'section 22 of Acl' 'court Ordered Penalties' 'regulatory Undertakings']

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Procedural Posture

Civil (penalty Proceedings and Declaratory Relief) / Final Judgment After Admissions, With Consent Orders and S 87 B Undertakings

Legal Issues

  1. 1 ['Did Coles engage in unconscionable conduct in contravention of s 22 of the Australian Consumer Law (as then in force) in its dealings with suppliers?' 'What relief and penalties are appropriate in the circumstances for that conduct?']

Ratio Decidendi

Coles engaged in unconscionable conduct under s 22 of the Australian Consumer Law by exploiting its superior bargaining power over smaller suppliers to extract payments and impose penalties outside agreed commercial arrangements, through threats, undue pressure and unfair tactics. The conduct was serious, deliberate and repeated, warranting significant pecuniary penalties, declarations, and undertakings for supplier redress, as jointly proposed by the parties and reflecting the seriousness of the contraventions as well as mitigating factors of cooperation and remedial action.

Court Disposition

Declarations of contravention made; pecuniary penalties imposed; costs ordered in favour of ACCC; undertakings accepted; proceedings otherwise dismissed.

Orders

  • ['Coles to pay pecuniary penalties totalling $10 million to the Commonwealth within 30 days, allocated as follows: $3.7 million for ARC Proceeding; $6.3 million for Claims Proceeding.' "Coles to pay ACCC's legal costs: $1 million for ARC Proceeding and $250,000 for Claims Proceeding within 30 days." 'Declarations of...