Australian Competition and Consumer Commission v TEAC Australia Pty Ltd

The case of Australian Competition and Consumer Commission v TEAC Australia Pty Ltd involved TEAC Australia Pty Ltd, a wholesaler of electronic goods, and its National Sales Manager, Mr. Allison, who were sued for engaging in resale price maintenance. The dispute was heard in the Federal Court of Australia. The primary legal issue before the court was whether TEAC and Mr. Allison had contravened the Competition and Consumer Act 2010 (Cth) by engaging in practices that amounted to resale price maintenance, and if so, what relief should be granted. TEAC admitted to ten contraventions of the Act arising from statements made and emails sent to Panasales, a retailer of electronic goods, specifying that TEAC would not supply goods unless Panasales agreed not to advertise for sale TEAC products below a specified price.

The court considered the submissions made by the parties and the agreed facts. It found that TEAC’s conduct amounted to a contravention of the Act, specifically engaging in resale price maintenance. The court was satisfied that the proposed consent orders were appropriate. The orders included declarations that the conduct constituted a contravention of the Act, injunctions restraining the respondents from engaging in proscribed conduct for three years, an education and compliance programme for TEAC employees, and pecuniary penalties for TEAC and Mr. Allison. The court concluded that the orders were necessary to serve the public interest and to ensure compliance with the Act. The court approved the orders, highlighting that they aligned with the principles established in previous cases regarding declarations, injunctive relief, and pecuniary penalties.