ACCC News Release: 29th October 2007

Penalties totalling $121,250 have been imposed on Netti Atom Pty Ltd and its National Sales Manager, Mr Paul Feltis for resale price maintenance following Australian Competition and Consumer Commission court action. Netti imports and distributes bicycles and bicycle accessories, including Scott bikes.

Justice Finkelstein of the Federal Court, Melbourne ordered Netti to pay $110,000 in pecuniary penalties for breaching the resale price maintenance provisions of the Trade Practices Act 1974, and Mr Feltis $11,250 for being knowingly concerned in the conduct. Justice Finkelstein also made the following orders, by consent:

• declarations
• injunctions
• publication orders requiring Netti to write to all Scott dealers informing them of the outcome of the case and also to publish an article in Bicycling Australia magazine
• a trade practices compliance program, and
• a contribution of $10,000 to the ACCC's costs.

Resale price maintenance is prohibited outright under section 48 of the Act and occurs when suppliers stop retailers advertising or selling their products at lower levels than specified by the suppliers.

The prohibition against resale price maintenance applies equally to goods sold on the internet. "This outcome should serve as a warning to all suppliers that resale price maintenance will not be tolerated," ACCC Chairman, Mr Graeme Samuel, said today.

The matter was decided under the new fast track system. It was filed on 1 August this year. In handing down his decision Justice Finkelstein thanked the parties for the efficient disposition of the matter.

Media inquiries

• Mr Graeme Samuel, Chairman, (03) 9290 1812, or 0408 335 555
• Ms Lin Enright, Director, Public Relations, (02) 6243 1108, 0414 613 520

General inquiries

• Infocentre 1300-302-502 Release # MR 293/07 Issued: 29th October 2007