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Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd

Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd

Case [1978] FCA 104

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AGLC: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd [1978] FCA 104
Case: [1978] FCA 104
Decision Date: 8 Dec 1978

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Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd [1978] FCA 104

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Cases Citing This Decision

Willis Brothers Installations (Qld) Pty Ltd v Ruttley [2023] FCA 1147
Citation 1 (Para 1)

…t is likely in many cases to suggest that a higher penalty is necessary to provide effective deterrence, both specific and general: see, for example, Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR ¶40-091 at 17, 896; Pattinson at [57]. The fact that a contravention was deliberate, concealed and carried out by senior management does not, ho…
Australian Competition and Consumer Commission v Samsung Electronics Australia Pty Ltd [2022] FCA 875
Citation 2 (Para 21)

…and Gordon JJ). [41]Having said that, a penalty must not be so high as to be oppressive: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd [1978] FCA 104; ATPR 40-091 at 17,896 (Smithers J) cited with approval in NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission [1996] FCA 1134;…
Australian Competition and Consumer Commission v AA Machinery Pty Ltd [2021] FCA 1293
Citation 3 (Para 2)

…and Gordon JJ) [41] Having said that, a penalty must not be so high as to be oppressive: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd [1978] FCA 104; ATPR 40-091 at 17,896 (Smithers J) cited with approval in NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission [1996] FCA 1134;…
Australian Securities and Investments Commission v Colonial First State Investments Limited [2021] FCA 1268
Citation 4 (Para 26)

…Having said that, a penalty must not be so high as to be oppressive: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd [1978] FCA 104; ATPR 40-091 at 17,896 (Smithers J) cited with approval in NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission [1996] FCA 1134; 71 FCR 285 at 293 (B…
Australian Securities and Investments Commission v Westpac Banking Corporation [2019] FCA 2147
Citation 5

…on and Consumer Commission (2012) 210 FCR 277 Trade Practices Commission v CSR Limited [1990] FCA 521; (1991) ATPR 41-076 Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 Veen v The Queen (No 2) (1988) 164 CLR 465 Date of hearing: 15 April 2019 Registry: New South Wales Division: General Division National Practice Area: Commercial and…
Construction, Forestry, Mining and Energy Union v De Martin & Gasparini Pty Limited (No 3) [2018] FCA 1395
Citation 6 (Para 19)

…effective deterrence is large, the amount of the penalty should be proportionate to the contravention and should not be so high as to be oppressive: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896; NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission (1996) 71 FCR 285 at 293; Australian Building and Con…
Australian Securities and Investments Commission v Hochtief Aktiengesellschaft [2016] FCA 1489
Citation 7 (Para 22)

…avention is high, and the amount necessary to provide effective deterrence is large, the amount of the penalty cannot be so high as to be oppressive: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896; NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission (1996) 71 FCR 285 at 293 (per Burchett and Kiefel JJ)…
In the matter of Macquarie Investment Management Limited [2016] NSWSC 1184
Citation 8

…213. In Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR ¶40-091 at [17,896] it was held that a penalty should be sufficiently high to have a deterrent quality and it should be kept in mind that the legislation operates in a commercial environment where deterrence of those minded to contravene its provisions is not likely to be achieved by p…
Comcare v John Holland Pty Ltd [2016] FCA 501
Citation 9 (Para 4)

…e deliberation with which the defendant contravened the Act: TPC v CSR at 52,153; Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40‑091 (“ Stihl Chain Saws ”), Smithers J at 17,896. 56… 57In TPC v CSR , French J notes at 52,152 the “primacy” of the deterrent purpose in the imposition of a penalty under s 76 of the Act having observed (see…
Australian Competition and Consumer Commission v Visa Inc [2015] FCA 1020
Citation 10 (Para 2)

…avention is high, and the amount necessary to provide effective deterrence is large, the amount of the penalty cannot be so high as to be oppressive: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896; NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission (1996) 71 FCR 285 at 293. At the end of the day, the…
Fair Work Ombudsman v Rainbow Paradise Preschool [2015] FCCA 1652
Citation 11

…185 FCR 308 Stuart-Mahoney v Construction, Forestry, Mining and Energy Union (2008) 177 IR 61 Trade Practices Commission v CSR Ltd (1991) ATPR 41-076 Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 Veen v R (1979) 143 CLR 458 Veen v R (No.2) (1988) 164 CLR 465 Walden v Hensler (1987) 163 CLR 561 Workplace Ombudsman v Saya Cleaning Pt…
Director, Fair Work Building Industry Inspectorate v Foxville Projects Group Pty Ltd [2015] FCA 492
Citation 12 (Para 3)

…Any penalty must not be so high as to be oppressive: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896 per Smithers J. A penalty that “ is no greater than is necessary to achieve the object of general deterrence, will not be oppressive ”: Australian Competition and Consumer Commission v Leahy Petroleum Pty Ltd (No 2) [2005] F…
TPG Internet Pty Ltd v Australian Competition and Consumer Commission [2012] FCAFC 190
Citation 13 (Para 13)

…A penalty must not be so high as to be oppressive: NW Frozen Foods at 293, referring to Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) 2 ATPR 40-091 at 17,896. In considering what may constitute oppression, Merkel J stated in Australian Competition and Consumer Commission v Leahy Petroleum Pty…
Australian Competition and Consumer Commission v Korean Air Lines Co Ltd [2011] FCA 1360
Citation 14 (Para 15)

…ed there is some support for the proposition that deterrence is the only object: see Trade Practices Commission v Stihl Chain Saws (Aust) Pty Limited (1978) 2 ATPR 40-091 at 17,896 per Smithers J; Trade Practices Commission v Mobil Oil Australia Ltd (1984) 4 FCR 296 at 297-298 per Toohey J; Trade Practices Commissi…
Australian Competition and Consumer Commission v SMS Global Pty Ltd [2011] FCA 855
Citation 15 (Para 16)

…It is also well established that, in seeking to deter, a penalty must not be set so high as to be oppressive: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896; NW Frozen Foods at [293]; and Australian Competition and Consumer Commission v Leahy Petroleum (No 2) [2005] FCA 254; 215 ALR 281 at [9]. Parity principle…
Australian Competition and Consumer Commission v Yellow Page Marketing BV (No 2) [2011] FCA 352
Citation 16

…ta Shoe Company of Australia Pty Ltd (No 2) (1980) 44 FLR 149 Trade Practices Commission v CSR Limited (1991) ATPR 41-076 Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 Turner, In the matter of L.A. Technologies Pty Ltd (ACN 092 001 495) (In Liquidation) [2009] FCA 805 Yarrabee Chicken Company Pty Ltd v Steggles Limited [2010] FCA 3…
Australian Competition and Consumer Commission v Dimmeys Stores Pty Ltd [2011] FCA 372
Citation 17 (Para 16)

…A principal object of a penalty under s 76 is deterrence: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896 and Trade Practices Commission v CSR Limited at 52,152-52,153. In Australian Competition and Consumer Commission v Leahy Petroleum Pty Ltd (No 3) (2005) 215 ALR 301 at [39] , Goldberg J concluded that: The penalty impos…
Australian Competition and Consumer Commission v Telstra Corporation Ltd [2010] FCA 790
Citation 18

…R 41-076 Trade Practices Commission v Malleys Ltd (1979) ATPR 40-118 Trade Practices Commission v Prestige Motors Pty Ltd (1994) ATPR 4-359 Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 Trade Practices Commission v TNT Australia Pty Limited (1995) ATPR 41-375 Universal Music Australia v Australian Competition and Consumer Commissio…
Australian Communications and Media Authority v Atkinson [2009] FCA 1565
Citation 19 (Para 23)

…high as to be “oppressive” in the sense contemplated in Trade Practices Commission v Stihl ChainSaws (Aust) Pty Ltd [1978] FCA 104; (1978) ATPR 40‑091. In addition, the evidence demonstrated that there was approximately $4m of financial loss on the part of individual mobile telephone users who were charged commun…
Australian Competition and Consumer Commission v Dataline.Net.Au Pty Ltd [2007] FCAFC 146
Citation 20 (Para 9)

…vener and by others who might be tempted to contravene the Act” ( Trade Practices Commission v CSR Ltd (supra) per French J at 52, 152; see also: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40‑091 per Smithers J at p 17, 896; Australian Competition and Consumer Commission v George Weston Foods Ltd (2000) ATPR 41‑763 per Goldberg J, 40,…
Australian Competition and Consumer Commission v Knight [2007] FCA 1011
Citation 21 (Para 4)

…It has long been accepted that a principal object of a penalty under s 76 is deterrence (see Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896 per Smithers J). In Trade Practices Commission v CSR Ltd (1991) ATPR 41-076 at 52,152, French J stated: The principal, and I think probably the only, object of the penalties imposed by…
Australian Competition and Consumer Commission v Jurlique International Pty Ltd [2007] FCA 79
Citation 22 (Para 15)

…In Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896, Smithers J made plain so long ago as 1978, ‘ the principal object of the imposition of a penalty under s 76 is deterrence ’.…
Australian Competition and Consumer Commission v IPM Operation and Maintenance Loy Yang Pty Ltd (No 2) [2007] FCA 11
Citation 23 (Para 15)

…Much earlier in the history of the TPA, Smithers J expressed similar views in Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 ( ‘Stihl’ ) at 17,896: ‘The penalty should constitute a real punishment proportionate to the deliberation with which the defendant contravened the provisions of the Act. It should be sufficiently high to have…
Australian Communications and Media Authority v Clarity1 Pty Ltd [2006] FCA 1399
Citation 24 (Para 2)

…However, there is also a need for commercial realism in fixing penalties. In Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091, Smithers J said at 17,896: ‘The penalty should constitute a real punishment proportionate to the deliberation with which the defendant contravened the provisions of the Act. It should be sufficiently high to h…
ACCC v Dermalogica Pty Ltd [2005] FCA 152
Citation 25 (Para 4)

…It is well established that the primary objective of the Act’s penalty regime is deterrence: see Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40‑091 at 17,896; Trade Practices Commission v CSR Ltd (supra) at 52,152; Australian Competition and Consumer Commission v George Weston Foods Ltd (2000) ATPR 41‑763 at 40,986; NW Frozen Foods Pty…
Australian Competition and Consumer Commission v Chubb Security Australia Pty Ltd [2004] FCA 1750
Citation 26 (Para 66)

…Mr Bathurst QC, who appears with Ms McCallum for Chubb, draws attention to Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896 (‘ Stihl ’) where Smithers J observed that ‘ the penalty should constitute a real punishment proportionate to the deliberation with which the defendant contravened the provisions of the Act ’ and that c…
Australian Competition and Consumer Commission v D M Faulkner Pty Ltd [2004] FCA 1666
Citation 27 (Para 5)

…e operation of s 76, including Trade Practices Commission v Pye Industries Sales Pty Ltd (1978) ATPR 40-089 (‘ Pye Industries Sales ’); Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091; Trade Practices Commission v Allied Mills Industries Pty Ltd (No 5) (1981) 60 FLR 38 (‘ Allied Mills ’); and Queensland Wire Industries Pty Ltd v Brok…
Australian Competition and Consumer Commission v Midland Brick Co Pty Ltd [2004] FCA 693
Citation 28 (Para 10)

…The statement by Smithers J in Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896 as to the manner of assessment of an appropriate penalty under the Act remains relevant today: ‘The penalty should constitute a real punishment proportionate to the deliberation with which the defendant contravened the provisions of the Act. It s…
Australian Competition and Consumer Commission v Chaste Corporation Pty Ltd [2004] FCA 398
Citation 29 (Para 2)

…ition and Consumer Commission (2000) 172 ALR 532 referred to further factors. An important object of a penalty under s 76 of the Act is deterrence: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896.…
Australian Competition and Consumer Commission v SIP Australia Pty Ltd [2003] FCA 336
Citation 30 (Para 8)

…ventions of the Act: Schneider Electric (Australia) Pty Ltd v Australian Competition and Consumer Commission (supra) per Sackville J at [3]; see also Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 46‑091 at 17,896; Trade Practices Commission v CSR Limited (supra) at 52,152; Trade Practices Commission v Mobil Oil Australia Ltd (1984) 4 FCR…
Re Ferrari Furniture Co Pty Ltd [2002] NSWSC 483
Citation 31

…mited [1991] ATPR 52-135 Trade Practices Commission v Simpson Pope Ltd (1980) 30 ALR 544 Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 17-882 Wong v R (2002) 185 ALR 233 DECISION: Orders for relief made; see paras 110, 124, 160, 187, 188.…
Australian Competition and Consumer Commission v Colgate-Palmolive Pty Ltd [2002] FCA 619
Citation 32 (Para 6)

…y price restraints imposed by suppliers of goods upon retailers. Deliberate contravention of that prohibition should be visited with heavy penalties: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,895.…
Australian Competition and Consumer Commission v Universal Music Australia Pty Ltd (No 2) [2002] FCA 192
Citation 33 (Para 19)

…; see per French J in CSR at 52,153. This is subject to the need to ensure that the penalty is proportionate to the contravention and not oppressive: Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896. Deterrence may be seen to be both specific to the particular respondent and general, in the sense of deterring other from enga…
Australian Competition and Consumer Commission v Ithaca Ice Works Pty Ltd [2001] FCA 1716
Citation 34 (Para 16)

…In Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) 2 ATPR 40-091 Smithers J said at 17,896: “… The penalty should constitute a real punishment proportionate to the deliberation with which the defendant contravened the provisions of the Act. It should be sufficiently high to have a deterrent qual…
Australian Competition and Consumer Commission v ABB Transmission and Distribution Limited [2001] FCA 1343
Citation 35

…having regard to the objective sought to be achieved by the imposition of the penalties and the nature of the penalties imposed in like cases, namely Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR ¶40-091; Trade Practices Commission v CSR Ltd (1991) ATPR ¶41-076; Trade Practices Commission v TNT Australia Pty Ltd (1995) ATPR ¶41-375; Austr…
Australian Prudential Regulation Authority v Holloway [2000] FCA 1245
Citation 36 (Para 13)

…at [157] ( “McPhee” ); N W Frozen Foods at 648; Trade Practices Commission v CSR Ltd (1991) ATPR 41-076 per French J at 52,153 ( “CSR” ); Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 per Smithers J at 17,896; Australian Securities Commission v Donovan (1998) 28 ACSR 583 per Cooper J at 608-609.…
J McPhee & Son (Australia) Pty Ltd v Australian Competition and Consumer Commission [2000] FCA 365
Citation 37 (Para 11)

…or covert. The authorities to which his Honour then referred do take these matters into account in determining penalty. Thus in Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40‑091, Smithers J said at 17,896: “The penalty should constitute a real punishment proportionate to the deliberation with which the defendant contravened the provisi…
Ammon v Consolidated Minerals Ltd [2005] WASC 156
Citation 38

…CLR 214 British Airways Pension Trustees Ltd v Sir Robert McAlpine & Sons Ltd (1994) 45 Con LR 1 Brookhouse v New South Wales Mutual Real Estate Fund (1978) 2 ATPR 40-064 BT Australasia Pty Ltd v State of New South Wales & Anor (No 7) (1998) 153 ALR 722 Cummings v Lewis (1993) ATPR (Digest) 46-103 Dare v Pulham (19…
Australian Competition and Consumer Commission v Mitsubishi Electric Australia Pty Ltd [2013] FCA 1413
Citation 39 (Para 4)

…It has long been accepted that a principal object of a penalty under s 76 of the Act is deterrence (see Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 40-091 at 17,896 per Smithers J). In Trade Practices Commission v CSR Ltd [1991] ATPR 41-076 ( CSR ) at 52,152 French J stated: The principal, and I think probably the only, object of the pe…
Australian Competition and Consumer Commission v Nissan Motor Co (Australia) Pty Ltd [1998] FCA 1048
Citation 40

…ed Trade Practices Commission v Cue Design Pty Ltd & Anor (1996) 18 ATPR 41-475 applied Trade Practices Commission v Stihl Chain Saws (Aust.) Pty Ltd (1978) 2 ATPR 40-091 applied Trade Practices Commission v Sun Alliance Australia Limited (1994) 16 ATPR 41-286 cited…
Australian Competition and Consumer Commission v J McPhee & Son (Australia) Pty Ltd [1998] FCA 310
Citation 41

…Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) 2 ATPR 40-091 at 17,896 applied Trade Practices Commission v Mobil Oil Australia (1985) 4 FCR 296 at 298 mentioned…
NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission [1996] FCA 1134
Citation 42

…imited (1996) ATPR 41,579 Trade Practices Commission v CSR Limited (1991) 13 ATPR 52,135 Trade Practices Commission v Stihl Chain Saws (Aust) Pty Ltd (1978) 2 ATPR 17,882 Trade Practices Commission v Mobil Oil Australia Ltd (1984) 4 FCR 296 Trade Practices Commission v Prestige Motors Pty Ltd (1994) 16 ATPR 42,693…
Trade Practices Commission v TNT Australia Pty Ltd [1995] FCA 13
Citation 43

…ppard J., 15 December 1994 Trade Practices Commission v. CSR Limited (1991) ATPR 52,135 Trade Practices Commission v. Stihl Chain Saws (Aust) Pty Ltd (1978) ATPR 17,882 Trade Practices Commission v. Mobil Oil Australia Ltd (1984) 4 FCR 296 Trade Practices Commission v. Prestige Motors Pty Ltd , unreported, Lee J.…
Wildtrek Ltd v Australian World Expeditions Pty Ltd [1987] FCA 531
Citation 44

…Compare L. Grollo Darwin Manasement Ptv. Ltd. v. Victor Plaster Products Ptv. Ltd. (1978) 2 ATPR 40-072 at p.17,737."…
Thorp, D.A. v Brian Lawlor Automotive Pty Ltd [1987] FCA 417
Citation 45

…Limited and Ors. (unreported decision of Wilcox J. delivered on 14 April 1987). See also Trade Practices Commission v. Stihl Chain Saws Pty. Limited (1978) 2 ATPR 40-091 at page 17,896. I agree with respect with these approaches.…
Adams, R.E. v Anthony Bryant & Company Pty Ltd [1987] FCA 180
Citation 46

…See also Trade Practices Commission v. Stihl Chainsaws Pty Ltd (1978) 2 ATPR 40-091 at p.17,896.…
Trade Practices Commission v Lois (Australia) Pty Ltd [1985] FCA 561
Citation 47

…Trade Practices Commission v. Stihl Chain Saws (Aust) Pty Ltd (1978) 3 A.T.P.R. 306.…
Trade Practices Commission v TNT Management Pty Ltd [1985] FCA 19
Citation 48

…FLR 383 at p 397; (1980) 3 ATPR 40-172 at p 42,377 (Lockhart J.) L. Grollo & Co. Pty. Ltd. v. Nu-Statt Decorating Pty. Ltd. (1978) 34 FLR 81 at p 89; (1978) 2 ATPR 40-086 at p 17,842 (Smithers J.).…
Trade Practices Commission v Mobil Oil Aust Pty Ltd [1984] FCA 246
Citation 49

…As to price, counsel acknowledged that in several decisions (in particular Trade Practices Commission v. Stihl Chain Saws (Aust) Pty. Ltd. (1978) ATPR 40-091; Trade Practices Commission v. Bata Shoe Company of Australia Pty. Ltd. (No. 2) (1980) 44 FLR 149; and Peter Williamson Pty. Ltd. v. Capitol M…
Trade Practices Commission v Massey Ferguson (Australia) Ltd [1983] FCA 164
Citation 50

…As was said in Trade Practices Commission v. Stihl Chain Saws (Aust.) Pty Ltd (1978) 2 ATPR 17,882 at 17,896:…

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