Chemical Formulators Pty Ltd ("Chemform") is a manufacturer and supplier of commercial cleaning products in Australia.
In response to an ACCC investigation, Chemform admitted that it was likely to have engaged in Resale Price Maintenance in contravention of section 48 of the Competition and Consumer Act 2010 by:
entering into agreements with distributors, a term of which prevented distributors from discounting the price of Chemform products below the price specified by Chemform;
providing distributors with price lists containing 'reseller' prices for Chemform products, which when read in conjunction with a term of the agreements with distributors was a statement of a price that was likely to be understood by distributors as the price below which Chemform products were not to be sold;
inducing or attempting to induce a distributor not to sell Chemform products below the price specified by Chemform; and
withholding supply from a distributor who was likely to sell Chemform products at a price less than the price specified by Chemform.
To address the ACCC's concerns, Chemform provided the ACCC with a court-enforceable undertaking that it will:
not engage in resale price maintenance conduct in the future;
revise its distributor agreement to ensure that it does not contain a clause preventing distributors from discounting the price of Chemform products below the price specified by Chemform;
send a copy of the revised distributor agreement to distributors and advise them that they are free to set the minimum price at which they sell Chemform products; and
implement a Competition and Consumer Law Compliance Program.
