Australian Competition and Consumer Commission v Fila Sport Oceania Pty Ltd (Administrators Appointed)

The Australian Competition and Consumer Commission (ACCC) brought proceedings against Fila Sport Oceania Pty Ltd, represented by its administrators, for serious breaches of Australian Consumer Law. The case was heard in the Federal Court of Australia, with Justice Gilmour presiding. The dispute centred on Fila's unlawful conduct in restricting retailers from stocking competitors' products, which contravened Section 47 of the Australian Consumer Law. Fila defended the proceeding for nearly eighteen months, despite its impending financial collapse, which led to significant expenses for the ACCC.

The court had to determine the appropriate penalty for Fila's conduct, considering the seriousness and duration of the contravention, the damage caused to several businesses, and the need for clear deterrence. The ACCC argued for a penalty between $2.5 million and $3 million, a range Fila did not contest. Justice Gilmour concluded that a penalty of $3 million was appropriate, given the mid-range economic activity value of the relevant conduct. The court also decided to adjourn the questions of injunctions and declarations pending the outcome of the proceeding against Mr Carney, a key individual involved.

In his decision, Justice Gilmour emphasised the seriousness of Fila's actions, noting that the conduct was blatant and had caused major damage. He highlighted the need for clear deterrence and acknowledged the substantial expense incurred by the ACCC due to Fila's prolonged defence. The court ordered Fila to pay a $3 million penalty and its costs of the proceeding to the ACCC. Additionally, the matter against Mr Carney was transferred to another judge for fairness reasons.

The orders of the court included granting the ACCC leave to proceed against Fila, imposing a $3 million penalty on Fila, adjourning the questions of injunctions and declarations, and ordering Fila to pay the ACCC's costs. These orders reflect the court's determination to address the unlawful conduct and ensure appropriate deterrence and compensation.