Australian Competition and Consumer Commission v Woolworths Limited [2014] FCA 364

Australian Competition and Consumer Commission v Woolworths Limited [2014] FCA 364

In the first period, Woolworths breached its Undertaking by allowing an 8 cent per litre discount on a single fuel purchase which was contingent on supermarket purchases, exceeding the permissible threshold in paragraph (10)(d). In the second period, the discounts could be obtained independently, with only 4 cents per litre contingent on supermarket purchases and 4 cents per litre contingent on petrol station in-store transactions; therefore, there was no breach for that period.

Jurisdiction
Australia
Judgment Date
14 April 2014
Procedural Posture
Originating Application for Declaratory and Compliance Orders / Judgment After Final Hearing
Outcome
Partial relief granted
Legal Topics
['enforcement of Undertakings' 'fuel Discounting Practices' 'statutory Interpretation']
['competition Law' 'consumer Law'] ['enforcement of Undertakings' 'fuel Discounting Practices' 'statutory Interpretation']

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Procedural Posture

Originating Application for Declaratory and Compliance Orders / Judgment After Final Hearing

Legal Issues

  1. 1 ['Proper construction of undertaking under s 87B of the Competition and Consumer Act 2010 (Cth)' "Whether discount offers amounted to breach by being 'contingent on' acquisition of goods or services from a supermarket"]

Ratio Decidendi

In the first period, Woolworths breached its Undertaking by allowing an 8 cent per litre discount on a single fuel purchase which was contingent on supermarket purchases, exceeding the permissible threshold in paragraph (10)(d). In the second period, the discounts could be obtained independently, with only 4 cents per litre contingent on supermarket purchases and 4 cents per litre contingent on petrol station in-store transactions; therefore, there was no breach for that period.

Court Disposition

Partial relief granted

Orders

  • ['The parties are to bring in short minutes giving effect to reasons and dealing with costs within 14 days.' 'If no agreement, the proceedings are to be listed for further orders regarding disposition and costs.']