Australian Competition and Consumer Commission v George Weston Foods Ltd

The Australian Competition and Consumer Commission (ACCC) brought proceedings against George Weston Foods Ltd (Weston), alleging that the company had contravened the Trade Practices Act 1974. The dispute centred around conduct that took place from May 2000, with investigations initiated by the ACCC towards the end of 2001. The proceedings were formally commenced on 5 December 2002. The court had to determine whether Weston had deliberately attempted to breach the prohibitions under Part IV of the Trade Practices Act, and if so, what the appropriate penalty and injunctions should be. The court also considered the ACCC's request for a compliance program order.

The court concluded that Weston had indeed engaged in conduct that contravened the Trade Practices Act. The court found that the suggested penalty of $1.5 million was at the lower end of the appropriate range, given the deliberate nature of the breach and the company's poor history of prior contraventions. The court granted a negative injunction preventing Weston from engaging in similar conduct for four years, aligning with the court's understanding of the broad powers granted under section 80 of the Act. However, the court did not find it necessary to order a positive compliance program, noting that the existing compliance measures were well-designed. The court also ordered Weston to pay the ACCC's costs.

In light of the findings, the court made several orders. Firstly, Weston was ordered to pay a pecuniary penalty of $1,500,000 within 60 days. Secondly, a negative injunction was imposed for a period of four years, preventing Weston from engaging in price-fixing arrangements for the sale of wheaten flour in Australia. Lastly, Weston was ordered to pay the ACCC's costs.