Australian Competition and Consumer Commission v Lactalis Australia Pty Ltd

This case involved proceedings by the Australian Competition and Consumer Commission (ACCC) against Lactalis Australia Pty Ltd (Lactalis), a dairy processor, for alleged breaches of the Competition and Consumer (Industry Codes–Dairy) Regulations 2019 (Cth) (Dairy Code). The primary issues before the court were whether Lactalis contravened specific provisions of the Dairy Code in its agreements with dairy farmers. The court needed to determine the meaning of certain undefined terms in the Dairy Code, such as "publish" on its website and "material breach," and whether certain agreements constituted a "single document." These issues required careful statutory interpretation in accordance with established principles, including the Chevron doctrine.

The court held that Lactalis breached the Dairy Code by failing to publish the standard form Milk Supply Agreements on its website before the deadline, as required by s 12(2). The court rejected Lactalis's argument that its method of providing access to the agreements, though indirect, was functionally equivalent to publishing. The court also found that Lactalis breached s 13 and s 17 of the Dairy Code by publishing and entering into agreements that allowed for unilateral termination without a material breach by the farmer. The court clarified that "material breach" in the context of the Dairy Code did not differ from "fundamental breach" in contract law, and that the agreements in question were not single documents but rather a combination of several documents, including the Milk Supply Agreement and the Regional Handbooks.

The court's interpretation of the Dairy Code was grounded in the natural and ordinary meaning of the terms, considering the context and purpose of the code. The Chevron principle was applied, where the court defers to the regulator's interpretation of ambiguous terms unless it is plainly contrary to the statutory text. The court emphasised the importance of adhering to the text and purpose of the Dairy Code, rejecting any attempt to read additional words into the statute.

In summary, the court declared that Lactalis breached the Dairy Code by failing to publish standard form Milk Supply Agreements on its website, by publishing agreements that allowed for unilateral termination without a material breach, and by entering into such agreements. The court also declared that Lactalis contravened s 51ACB of the Competition and Consumer Act 2010 (Cth) by its conduct in breach of the Dairy Code. The matter was to be further heard to determine any additional relief and the question of costs.