Australian Competition and Consumer Commission v Skins Compression Garments Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought an action against Skins Compression Garments Pty Ltd and Mr. Christopher Thomas Warhurst, alleging breaches of the Trade Practices Act 1974. Specifically, the ACCC claimed that Skins engaged in resale price maintenance and misleading conduct related to the provision of its products to sports teams and athletes. The case involved allegations that Skins had made misrepresentations about not paying sports stars to wear or endorse their products, despite having agreements in place that involved financial payments and provision of products. The court was required to decide whether Skins and Mr. Warhurst contravened sections 48 and 52 of the Trade Practices Act by their actions.

The court concluded that Skins had indeed engaged in resale price maintenance by inducing and attempting to induce a retailer not to advertise Skins products at prices lower than those specified by Skins. This was in violation of section 48 of the Act. Additionally, Mr. Warhurst was found to be knowingly concerned in these activities. Regarding the misleading conduct, the court found that Skins had made various misrepresentations in their advertising and on their websites, claiming they did not pay sports stars to wear or endorse their products, which was contrary to the agreements in place. These actions contravened section 52 of the Act. The court accepted the proposed penalties of $120,000 for Skins and $14,000 for Mr. Warhurst, to be paid in instalments. The court also ordered Skins to provide corrective notices and advertisements and to publish a report detailing the broadcasting of these corrective actions.

In summary, the court's decision confirmed the breaches of the Trade Practices Act by Skins and Mr. Warhurst and ordered appropriate pecuniary penalties and corrective actions to address the misleading conduct.