Flight Centre and ANZ appeals answer price-fixing concerns in dual distribution models

Key Points:

If your business is an agent or sells through agents, you should check your arrangements on pricing for customers.

Flight Centre's and ANZ's wins on appeal have helped to clarify the law on price-fixing for any agent or distributor which offers and sells services similar to those offered direct to consumers by its principal (Flight Centre Limited v ACCC [2015] FCAFC 104 and ACCC v Australia and New Zealand Banking Group Limited [2015] FCAFC 103).

The decisions have important implications for price parity clauses in travel markets and for other services, including financial advice, broking, and insurance.

The impact on the dual distribution of goods and some other distribution models for services is, however, less clear, as it does leave open the possibility that agents can be found to be competitors of their principal in some circumstances.