Australian Competition & Consumer Commission v Alice Car & Truck Rentals Pty Ltd & Ors [1997] FCA 920

Australian Competition & Consumer Commission v Alice Car & Truck Rentals Pty Ltd & Ors [1997] FCA 920

The respondents entered into and gave effect to an arrangement that had the purpose and effect of substantially lessening competition in the Alice Springs rental car market for walk-up customers, contravening ss 45(2)(a)(ii) and 45(2)(b)(ii) of the Trade Practices Act 1974. Penalties and injunctive relief are assessed based on deterrence, cooperation, compliance undertakings, and compensation to affected customers.

Jurisdiction
Australia
Judgment Date
12 August 1997
Procedural Posture
Civil / Judgment
Outcome
Pecuniary penalties imposed, injunctive relief granted, compensation to affected customers ordered, costs allocated, no penalty against Fifth Respondent (Hunter) for cooperation.
Legal Topics
['price Fixing' 'cartel Conduct' 'penalty Assessment' 'injunctions' 'trade Practices Act']
['competition Law'] ['price Fixing' 'cartel Conduct' 'penalty Assessment' 'injunctions' 'trade Practices Act']

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Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 ['Whether price fixing arrangements among rental car companies in Alice Springs contravened sections 45(2)(a)(ii) and 45(2)(b)(ii) of the Trade Practices Act 1974' 'Appropriate penalties and injunctive orders for admitted contraventions']

Ratio Decidendi

The respondents entered into and gave effect to an arrangement that had the purpose and effect of substantially lessening competition in the Alice Springs rental car market for walk-up customers, contravening ss 45(2)(a)(ii) and 45(2)(b)(ii) of the Trade Practices Act 1974. Penalties and injunctive relief are assessed based on deterrence, cooperation, compliance undertakings, and compensation to affected customers.

Court Disposition

Pecuniary penalties imposed, injunctive relief granted, compensation to affected customers ordered, costs allocated, no penalty against Fifth Respondent (Hunter) for cooperation.

Orders

  • ['Pecuniary penalty against Alice Car & Truck Rentals Pty Limited: $200,000 (s 45(2)(a)(ii)) + $300,000 (s 45(2)(b)(ii)), payable in three instalments.' 'Pecuniary penalty against Stafftoy Pty Limited: $75,000 (s 45(2)(a)(ii)) + $125,000 (s 45(2)(b)(ii)), payable in three instalments.' 'Pecuniary penalty against...