WOOLWORTHS FINED $9M FOR ANTI-COMPETITIVE CONDUCT

Written on the 3 June 2016

WOOLWORTHS FINED $9M FOR ANTI-COMPETITIVE CONDUCT

WOOLWORTHS (ASX:WOW) has been fined $9 million over its involvement in a laundry detergent cartel.

The Australian Competition and Consumer Commission commenced Federal Court proceedings against the retailer for contravening the Competition and Consumer Act 2010.

Woolworths admitted to being knowingly concerned in an understanding between Colgate-Palmolive, Cussons Australia and Unilever Australia to supply ultra concentrate laundry detergents instead of standard concentrate in 2009.

Ultra concentrates sell for the same price per wash as the equivalent standard products, however the cost savings were not passed on to consumers.

ACCC chairman Rod Sims says the penalty is the largest the watchdog has obtained against an accessory to competition law breaches.

"By imposing these penalties, the court has acknowledged that Woolworths was knowingly concerned in an anti-competitive understanding which they admitted was reached between laundry detergent manufacturers," Sims says.

"This is a timely reminder that businesses must ensure that their competition law compliance programs educate their staff about the risks involved in communications or other conduct which facilitates an anti-competitive understanding between other businesses."

Colgate-Palmolive had to pay total penalties of $18 million earlier this year, which included $12 million in penalties for limiting the supply of laundry detergents.

The Federal Court also made orders by consent that Woolworth update its trade practices compliance program and pay a contribution of $250,000 towards the ACCC's costs in the proceedings.

 


Latest News

DREAMWORLD PARENT COMPANY DEMOTES CEO DEBORAH THOMAS

ARDENT LEISURE, the parent company of Gold Coast's Dreamworld theme park, has reshuffled its core leadership w...

MELBOURNE SHOPPING CENTRE SELLS FOR $48m AS CHINESE DEMAND RAMPS UP

A MELBOURNE shopping centre has been sold for $48 million, bringing the total spent by Chinese investors on Victor...

HOW WEDDING WOES INSPIRED A BOOMING BUSINESS FOR MEGAN ZIEMS

WHEN she was dress shopping for her wedding in 2010, Megan Ziems (pictured left) was disappointed to discover a ma...

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter