Australian Competition & Consumer Commission v George Weston Foods Limited [2004] FCA 1093

Australian Competition & Consumer Commission v George Weston Foods Limited [2004] FCA 1093

A $1.5 million penalty was appropriate because the conduct was a deliberate attempt by an executive director at the highest level of a substantial corporation to engage in price fixing in a major staple-food industry, Weston had a poor record of prior contraventions, the conduct was typical cartel behaviour and difficult to detect, and deterrence required a heavy penalty, although the attempt was unsuccessful and caused no actual loss. A negative injunction was appropriate given Weston's repeated contraventions and the importance of the prohibition in Pt IV. Positive compliance program orders were refused because the existing program was serious and well designed and such a program could...

Jurisdiction
Australia
Judgment Date
25 August 2004
Procedural Posture
Trade Practices Act Proceeding for Admitted Attempted Contraventions of S 45 Incorporating S 45 a of the Trade Practices Act 1974 (cth) / Penalty and Remedies Hearing; Proceedings Against the Second Respondent Discontinued at the Conclusion of Argument
Outcome
George Weston Foods Limited was ordered to pay a pecuniary penalty of $1,500,000, was restrained by injunction for four years, and was ordered to pay the ACCC's costs. The ACCC's requested positive compliance program orders were refused. Proceedings against Paul Benedict Loneragan were discontinued.
Legal Topics
['attempted Price Fixing' 'pecuniary Penalties' 'negative Injunctions' 'positive Injunctions' 'compliance Programs' 'prior Contraventions' 'deterrence']
['competition and Consumer Law' 'trade Practices'] ['attempted Price Fixing' 'pecuniary Penalties' 'negative Injunctions' 'positive Injunctions' 'compliance Programs' 'prior Contraventions' 'deterrence']

Case Brief

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Procedural Posture

Trade Practices Act Proceeding for Admitted Attempted Contraventions of S 45 Incorporating S 45 a of the Trade Practices Act 1974 (cth) / Penalty and Remedies Hearing; Proceedings Against the Second Respondent Discontinued at the Conclusion of Argument

Legal Issues

  1. 1 ['What pecuniary penalty should be imposed on George Weston Foods Limited for admitted attempts to contravene s 45 incorporating s 45A of the Trade Practices Act 1974 (Cth).' 'Whether a negative injunction restraining similar price-fixing conduct for four years should be granted.' 'Whether positive injunctions concerning a compliance program should be granted.']

Ratio Decidendi

A $1.5 million penalty was appropriate because the conduct was a deliberate attempt by an executive director at the highest level of a substantial corporation to engage in price fixing in a major staple-food industry, Weston had a poor record of prior contraventions, the conduct was typical cartel behaviour and difficult to detect, and deterrence required a heavy penalty, although the attempt was unsuccessful and caused no actual loss. A negative injunction was appropriate given Weston's repeated contraventions and the importance of the prohibition in Pt IV. Positive compliance program orders were refused because the existing program was serious and well designed and such a program could...

Court Disposition

George Weston Foods Limited was ordered to pay a pecuniary penalty of $1,500,000, was restrained by injunction for four years, and was ordered to pay the ACCC's costs. The ACCC's requested positive compliance program orders were refused. Proceedings against Paul Benedict Loneragan were discontinued.

Orders

  • ['The first respondent George Weston Foods Limited pay to the Commonwealth of Australia a pecuniary penalty under s 76 of the Trade Practices Act 1974 in the sum of $1,500,000 within 60 days of the date of this order.' 'The first respondent George Weston Foods Limited (whether by its directors, servants or agents or...