Australian Competition and Consumer Commission v Tooltechnic Systems (Aust) Pty Ltd [2007] FCA 432

Australian Competition and Consumer Commission v Tooltechnic Systems (Aust) Pty Ltd [2007] FCA 432

Tooltechnic Systems (Aust) Pty Ltd contravened section 48 of the Trade Practices Act 1974 (Cth) by attempting to induce Power Tool Services and Trade Tools Direct not to sell 'Festool' or 'Festo' products below prices specified in its annual price list, amounting to resale price maintenance. The court imposed a pecuniary penalty discounted for cooperation and restraint orders to prevent future contravention.

Jurisdiction
Australia
Judgment Date
21 March 2007
Procedural Posture
Civil / Final Judgment
Outcome
The respondent admitted contraventions. Pecuniary penalty and injunctions were imposed by consent; costs awarded.
Legal Topics
['resale Price Maintenance' 'pecuniary Penalties' 'injunctions' 'compliance Programs']
['competition Law' 'consumer Law'] ['resale Price Maintenance' 'pecuniary Penalties' 'injunctions' 'compliance Programs']

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Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 ['Whether Tooltechnic Systems (Aust) Pty Ltd engaged in resale price maintenance in contravention of section 48 of the Trade Practices Act 1974 (Cth)' 'Appropriate amount for pecuniary penalty under section 76 of the Act' 'Appropriate form of declarations and injunctions against future contravention']

Ratio Decidendi

Tooltechnic Systems (Aust) Pty Ltd contravened section 48 of the Trade Practices Act 1974 (Cth) by attempting to induce Power Tool Services and Trade Tools Direct not to sell 'Festool' or 'Festo' products below prices specified in its annual price list, amounting to resale price maintenance. The court imposed a pecuniary penalty discounted for cooperation and restraint orders to prevent future contravention.

Court Disposition

The respondent admitted contraventions. Pecuniary penalty and injunctions were imposed by consent; costs awarded.

Orders

  • ['The Court notes undertakings given by Tooltechnic and its managing director under section 87B of the Trade Practices Act 1974 (Cth).' 'Declarations made that Tooltechnic contravened section 48 by attempting to induce retailers not to sell Festool products below specified prices in late 2001 and May 2002.'...