Trade Practices Commission v. British Building Society & Ors [1987] FCA 553

Trade Practices Commission v. British Building Society & Ors [1987] FCA 553

The respondents contravened section 47 of the Trade Practices Act 1974 by making home loan eligibility conditional upon acquisition of life insurance from a specified third party (B.M.A.), constituting unlawful third line forcing. Penalties are set in accordance with the degree of culpability, cooperation, and financial circumstances of the respondents.

Parties
Applicant: Trade Practices Commission; First Respondent: British Building Society; Second Respondent: Bonney Nominees Pty.Ltd.; Third Respondent: Michael Edwin Bonney; Fourth Respondent: Andrew John Cahill; Fifth Respondent: Business Men's Assurance Company of Australia Limited
Jurisdiction
Australia
Judgment Date
21 September 1987
Procedural Posture
Application for Pecuniary Penalties / Final Judgment
Outcome
Pecuniary penalties imposed on each respondent and costs awarded to the applicant.
Legal Topics
Exclusive Dealing, Third Line Forcing, Pecuniary Penalties, Trade Practices Act
Competition Law Exclusive Dealing Third Line Forcing Pecuniary Penalties Trade Practices Act

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Parties

Trade Practices Commission

Applicant

British Building Society

First Respondent

Bonney Nominees Pty.Ltd.

Second Respondent

Michael Edwin Bonney

Third Respondent

Andrew John Cahill

Fourth Respondent

Business Men's Assurance Company of Australia Limited

Fifth Respondent

Procedural Posture

Application for Pecuniary Penalties / Final Judgment

Legal Issues

  1. 1 Whether the respondents contravened section 47 of the Trade Practices Act 1974 (prohibition on exclusive dealing/third line forcing)
  2. 2 Appropriate pecuniary penalty for each respondent

Ratio Decidendi

The respondents contravened section 47 of the Trade Practices Act 1974 by making home loan eligibility conditional upon acquisition of life insurance from a specified third party (B.M.A.), constituting unlawful third line forcing. Penalties are set in accordance with the degree of culpability, cooperation, and financial circumstances of the respondents.

Court Disposition

Pecuniary penalties imposed on each respondent and costs awarded to the applicant.

Orders

  • British Building Society to pay $10,000 to the Commonwealth of Australia as penalty.
  • Bonney Nominees Pty.Ltd. to pay $15,000 to the Commonwealth of Australia as penalty.