In September 2004, The Highlife Company (Aust.) Pty Ltd trading as Highlife Co. (Highlife) sent a letter to its New South Wales CANNA dealers and resellers in relation to the retail pricing of its CANNA Coco 50L products. In the letter Highlife noted the recommended retail price of $32.95 and stated that Highlife would ‘find it difficult to supply dealers that did not maintain healthy profit margins on CANNA Coco 50L products’.
The ACCC is of the view that the conduct of Highlife, in sending the letter to its New South Wales CANNA dealers and resellers, constituted engaging in resale price maintenance as defined by sections 96 (3)(a) and (b) of the TPA therefore breaching section 48 of the TPA.
Highlife acknowledges the ACCC’s concerns and has provided court enforceable undertakings that it will not, in trade or commerce, engage in conduct of the following kind:
making it known to the dealers or resellers of Highlife’s products that Highlife will not supply CANNA Coco 50L products or any other products to those dealers or resellers unless the dealers or resellers agree not to resell those products at a price less than those specified by Highlife;
inducing or attempting to induce dealers or resellers not to resell, at a price less than a price specified by Highlife, CANNA Coco 50L products or any other products supplied to dealers or resellers by Highlife; and
using in relation to the CANNA Coco 50L products or any other products supplied, or that may be supplied, by Highlife to dealers or resellers, a statement of price that is likely to be understood by dealers or resellers as the price below which those products are not to be resold.
Highlife has also undertaken to:
write to its NSW CANNA dealers to explain the effect of its conduct; and
implement and maintain a trade practices compliance program.
