ACCC v Dermalogica Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought an action against Dermalogica Pty Ltd for contravening the Competition and Consumer Act 2010 (Cth) (the Act) by engaging in the practice of resale price maintenance. The court had to determine whether Dermalogica contravened section 48 of the Act, what the appropriate pecuniary penalty should be for the conduct in contravention of section 48, and whether an injunction should be granted. Dermalogica admitted to engaging in the practice of resale price maintenance within s 96(3)(b) and (f) of the Act but denied that any conduct constituting resale price maintenance under s 96(3)(a) had occurred. The court found that Dermalogica did contravene section 48 of the Act insofar as s 96(3)(a) is concerned and granted an injunction against future acts of resale price maintenance by Dermalogica. The court also imposed a pecuniary penalty of $250,000 on Dermalogica. The court held that Dermalogica’s conduct was rash and ignorant and that the principle of deterrence required a significant penalty. The court also found that Dermalogica’s cooperation with the Commission mitigated the penalty imposed.