| Hobie AUS gets their Hand Slapped ! #140045 04/15/08 01:52 PM 04/15/08 01:52 PM |
Joined: Jan 2004 Posts: 216 Lakewood, Colorado MUST429 OP
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Posts: 216 Lakewood, Colorado | Copied from Sailing Anarchy
Hobie Cat Australasia Pty Ltd penalised $168,000 for resale price maintenance
The Federal Court of Australia has imposed a penalty of $168,000 on Hobie Cat Australasia Pty Ltd, a kayak and sailboat supplier, for engaging in resale price maintenance in contravention of section 48* of the Trade Practices Act 1974.
The Australian Competition and Consumer Commission instituted proceedings against Hobie in September 2007, alleging Hobie had engaged in resale price maintenance by including in its dealership agreements, terms which prohibited dealers from selling or advertising Hobie products below the recommended retail prices, or at prices no less than 10 per cent below the recommended retail prices.
After admissions by Hobie that it engaged in the conduct alleged, the ACCC and Hobie submitted agreed orders, including a proposed penalty figure, for consideration by the court.
Justice Finn imposed the penalty submitted and made consent orders, including:
declarations that Hobie engaged in resale price maintenance conduct in contravention of section 48 of the Trade Practices Act injunctions restraining the same contravening conduct in future Hobie establish a trade practices compliance program, and maintain that program for a period of three years Hobie write to all of its dealers advising them that it had engaged in illegal conduct and that it cannot specify to retailers a minimum price below which goods are not to be sold, and Hobie pay the ACCC's costs. Justice Finn noted that while Hobie's conduct was "intentional and purposive" it "involved no knowing (or deliberate) contravention of the Act."
He also noted that the penalty was substantial and significant for a company of Hobie's size and was proportionate to the seriousness of its contraventions.
ACCC Chairman, Mr Graeme Samuel, said: "The outcome of this matter should drive home to businesses of all sizes that every care must be taken to ensure they are aware of their obligations under the Trade Practices Act. It also serves as a warning that the ACCC will vigorously pursue allegations of resale price maintenance in any industry to ensure there is fair play in the market place and lower prices for consumers."
Life is not about waiting for the storms to pass... It's about learning to dance in the rain
| | | Re: Hobie AUS gets their Hand Slapped !
[Re: MUST429]
#140046 04/15/08 02:49 PM 04/15/08 02:49 PM |
Joined: Jan 2005 Posts: 829 Charleston, SC NCSUtrey
old hand
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Posts: 829 Charleston, SC | I'm pretty sure Hobie USA does the same thing...they'd better watch out!
Trey
| | | Re: Hobie AUS gets their Hand Slapped !
[Re: Will_R]
#140048 04/15/08 03:05 PM 04/15/08 03:05 PM |
Joined: Jan 2005 Posts: 829 Charleston, SC NCSUtrey
old hand
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Posts: 829 Charleston, SC | Yeah, it sounds to me like it's pretty close to infringing on the Sherman and/or the Clayton Antitrust Acts. Not allowing dealers to advertise or sell products below MSRP lessens competition in a free market.
Though, provisions of dealer-protected areas may allow this loophole. I'm no lawyer though.
Trey
| | | Re: Hobie AUS gets their Hand Slapped !
[Re: NCSUtrey]
#140049 04/15/08 03:40 PM 04/15/08 03:40 PM | Anonymous
Unregistered
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Unregistered | I think its ridiculous... a suppliers should have the right to mandate the rate its dealers charge. That actually promotes a fair chance for everyone to make a sale.
This is a legal method and utilized in the US and many different industries. I am not a lawyer, but I play one on TV <img src="http://www.catsailor.com/forums/images/graemlins/smile.gif" alt="" /> . (I know that is part of reseller contracts I deal with...)
Also it is my understanding the anti-sherman /anti-trust acts are more about disallowing monopolies and companies conspiring to artificially inflate / manipulating pricing (upward)... not creating limits that restrict underselling rates ...
Last edited by andrewscott; 04/15/08 03:43 PM.
| | | Re: Hobie AUS gets their Hand Slapped !
[Re: Hullflyer1]
#140051 04/15/08 04:09 PM 04/15/08 04:09 PM | Anonymous
Unregistered
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Unregistered | Hell no! I would be pissed if I couldn’t get some deal! LOL... <img src="http://www.catsailor.com/forums/images/graemlins/grin.gif" alt="" />
I am a capitalist 100%... and believe in fair trade (and even more in fair exchange...) I wasn’t saying I like this... just that it is legal and practiced in the US. I think its ridiculous they were fined... I FEEL it is the companies prerogative to charge how and what they want... it is the publics POWERS that determines if these practices are sound ... and they stay in business (afloat if you will)
Keep in mind most new auto promotions are from the main company, not the dealer... and it is for ALL dealers. | | | Re: Hobie AUS gets their Hand Slapped ! *DELETED*
[Re: ]
#140052 04/15/08 04:24 PM 04/15/08 04:24 PM |
Joined: Aug 2005 Posts: 2,921 Michigan PTP
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Posts: 2,921 Michigan | Post deleted by PTP
Last edited by PTP; 04/15/08 04:24 PM.
| | | Re: Hobie AUS gets their Hand Slapped !
[Re: SurfCityRacing]
#140056 04/15/08 08:35 PM 04/15/08 08:35 PM |
Joined: Apr 2005 Posts: 473 Panama City, Florida Redtwin
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Posts: 473 Panama City, Florida | I can tell you from experience in cycling that this is practiced in the US, though I have known dealers who can get around it by not advertising certain "clearance" items. Rob V.
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