Trade Practices
No. 57 of 1971
An Act to amend the Trade Practices Act 1965–1969 in relation to Resale Price Maintenance and to amend sections 11 and 24 of that Act.
[Assented to 25 May 1971]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Trade Practices Act 1971.
(2.) The Trade Practices Act 1965–1969 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Trade Practices Act 1965–1971.
Commencement.
2.—(1.) Subject to the next succeeding sub-section, this Act shall come into operation on a date to be fixed by Proclamation.
(2.) Sections 1, 2 and 15 of this Act shall come into operation on the date on which this Act receives the Royal Assent.
(3.) Each Part and section inserted in the Principal Act by this Act shall come into operation on the date fixed under sub-section (1.) of this section.
(4.) At any time after this Act has received the Royal Assent and before the date fixed under sub-section (1.) of this section, regulations may be made under the Principal Act as amended by this Act as if the whole of this Act had come into operation on the date on which this Act received the Royal Assent but regulations so made do not come into operation before the first-mentioned date.
Parts.
3. Section 3 of the Principal Act is amended—
(a) by inserting after the words—
“Division 3.—Review of Determinations, and Judicial Determination of Questions of Law (Sections 62–66).”
the words—
“Part VIa.—Resale Price Maintenance.
Division 1.—The Unlawful Practice of Resale Price Maintenance (Sections 66a-66g).
Division 2.—Exemptions (Sections 66h-66l).
Division 3.—General (Sections 66m-66n).”; and
(b) by omitting the words—
“Civil Remedies (Sections 88–90).”
and inserting in their stead the words—
“Civil Remedies (Sections 88–90ab).”.
Definitions.
4. Section 5 of the Principal Act is amended by inserting after the definition of “the Court” the following definition:—
“‘the practice of resale price maintenance’ means the practice of resale price maintenance referred to in Part VIa.;”.
Extended operation of Act in relation to Tasmania.
5. Section 7a of the Principal Act is amended by inserting in subsection (2.), after paragraph (b), the following paragraph:—
“(ba) the practice of resale price maintenance is a practice in relation to which this section applies only if it is engaged in, or is proposed to be engaged in, wholly or partly in Tasmania;”.
Terms and conditions of appointment
6. Section 11 of the Principal Act is amended—
(a) by omitting from sub-section…
Overview
The Trade Practices Act 1971, enacted by the Commonwealth Parliament, was introduced to amend the Trade Practices Act 1965–1969, particularly concerning the prohibition of Resale Price Maintenance (RPM). The 1971 Act was aimed at addressing the problem of RPM, a practice where suppliers dictate the minimum resale price of their goods, which can stifle competition and ultimately harm consumers by reducing choices and potentially increasing prices. The policy objective behind this legislation was to foster a competitive market environment by outlawing RPM and ensuring fair trade practices. The Act came into effect on a date specified by proclamation, with certain sections taking immediate effect upon receiving Royal Assent. It introduced new provisions to define RPM as an unlawful practice, established mechanisms for exemptions, and provided for enforcement and penalties through civil and criminal proceedings. Additionally, the Act extended its reach to cover practices occurring in interstate trade, within territories, and involving foreign corporations, thereby solidifying its intent to comprehensively regulate anti-competitive practices across various jurisdictions within Australia.
Scope and Application
The Trade Practices Act 1971 applies to the practice of resale price maintenance engaged in or proposed to be engaged in during trade or commerce with other countries or among the States, or within or between Australian territories, and by specified entities such as trading corporations, financial corporations, and foreign corporations. This practice is deemed unlawful unless specifically authorised or approved by relevant legislation or regulations. Exemptions from this prohibition may be sought by any person supplying goods other than by retail sale, provided certain detriments to the public can be demonstrated if the exemption is not granted. The Act also governs the procedures for applying for and determining such exemptions, and establishes the enforcement mechanisms, including civil remedies, injunctions, and the exclusive jurisdiction of the Court in matters related to the practice of resale price maintenance. Notably, the Act explicitly excludes criminal proceedings for engaging in this practice, rendering agreements that stipulate resale price maintenance unenforceable.
Key Provisions
- The Trade Practices Act 1971 (C1971A00057) amends the Trade Practices Act 1965–1969 (referred to as the Principal Act) by introducing new provisions regarding the unlawful practice of resale price maintenance. The Act inserts a new Part VIa into the Principal Act, which includes Division 1 (Sections 66a-66g) on the unlawful practice of resale price maintenance, Division 2 (Sections 66h-66l) on exemptions, and Division 3 (Sections 66m-66n) on general provisions. This amendment applies to practices engaged in or proposed to be engaged in during trade or commerce within Australia, between states, or with foreign entities, unless specifically exempted by the Act.
- The Act outlines several obligations for parties involved in trade or commerce. For example, it is unlawful to engage in resale price maintenance (Section 66b), which includes actions such as specifying a minimum resale price, inducing others to adhere to such a price, or withholding supply of goods to prevent lower resale prices. This applies to trading and financial corporations, foreign corporations, and entities supplying goods to the Commonwealth or its authorities. Additionally, agreements that enforce resale price maintenance are deemed unenforceable (Section 66g). Parties can apply for exemptions from these provisions if they can demonstrate that not granting an exemption would result in substantial detriment to the public, such as reduced quality or variety of goods, fewer retail establishments, increased prices, or health risks (Section 66k).
- Violations of the Act's provisions carry both civil and potential administrative penalties. For instance, individuals or entities that suffer loss or damage due to the practice of resale price maintenance can initiate legal action to recover damages (Section 88). The Court also has the authority to grant injunctions against those engaging in resale price maintenance, with proceedings for contempt of court available for breaches of such injunctions (Section 90aa). While the Act does not specify criminal penalties for these violations, the unenforceable nature of resale price maintenance agreements and the potential for civil action and injunctions serve as significant deterrents.
- In summary, the Trade Practices Act 1971 imposes stringent restrictions on resale price maintenance practices, requiring compliance with specific criteria to avoid legal repercussions. The Act provides avenues for exemptions under certain conditions and outlines clear civil remedies for those adversely affected by unlawful practices.
- Area of Law
- Commercial Law
- Instrument
- Act
- Concepts
- Commencement Provisions
- Offence Provisions
- Prohibited Conduct
- Civil Penalty Provisions
