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ARTICLE · 15 MARCH 2017

Unconscionable conduct - A comparison of Coles and Woolworths decisions

The cases provide lessons for businesses to avoid requests of suppliers or distributers that could be seen as threats.

AustraliaConsumer Protection

IN BRIEF - FEDERAL COURT DECISIONS PROVIDE LESSONS FOR BUSINESSES

While the Federal Court cases of ACCC v Coles [2014] FCA 1405 and, more recently, ACCC v Woolworths [2016] FCA 1472 delivered different outcomes, they nevertheless provide important lessons for larger entities to be aware of what is considered normal business practice in their industries and to avoid requests of suppliers or distributers that could reasonably be perceived as threats.

UNCONSCIONABLE CONDUCT IS A BROAD AREA OF LAW AND COURTS MAY CONSIDER A RANGE OF FACTORS

These two cases concerned Australia's supermarket giants Coles and Woolworths seeking retrospective payments from suppliers, which the Australian Competition and Consumer Commission alleged amounted to unconscionable conduct under section 21(1) of the Australian Consumer Law (ACL).

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