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ARTICLE · 25 OCTOBER 2020

ACCC Brings Resale Price Maintenance Enforcement Action

Jones Day
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A new ACCC resale price maintenance case provides a timely reminder that manufacturers and suppliers must tread carefully with distribution arrangements related to price in Australia.

AustraliaAntitrust/Competition Law
Jones Day
Jones Day
Michelle Fischer
Michelle Fischer
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A new ACCC resale price maintenance case provides a timely reminder that manufacturers and suppliers must tread carefully with distribution arrangements related to price in Australia.

The Australian Competition and Consumer Commission ("ACCC") has commenced proceedings against FE Sports, alleging it engaged in Resale Price Maintenance ("RPM"). The ACCC is seeking injunctions, penalties, a compliance program and costs. RPM occurs when a supplier of goods or services sets (or attempts to set) a minimum price below which resellers cannot resell or advertise its products. Australia's competition law prohibits RPM and assumes it harms competition without any consideration of its competitive impact. However, a company can notify the ACCC of its RPM plan and obtain legal protection if the ACCC does not object within 14 days. If the ACCC does object, it commences an assessment (usually taking around six months), after which the ACCC either accepts the conduct or revokes

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