17 August 2004: Proceedings were instituted against Westminster Retail and its directors Kenneth Wade and Heather Wade.
The ACCC alleges that Westminster Retail and its directors engaged in resale price maintenance conduct in respect of the supply of decorative goods (Armani figures) to Westminster franchisees for the purposes of resale.
A directions hearing is set for 16 September 2004.
16 September 2004: Westminster Retail has been listed for trial on 11 April 2005 in the Federal Court, Adelaide.
The parties have filed a Statement of Agreed Facts and proposed consent orders in the Federal Court, Adelaide, seeking declarations that Westminster Retail and its directors, Kenneth and Heather Wade, have engaged in conduct in breach of the resale price maintenance provisions of the Trade Practices Act.
Specifically, the parties are seeking declarations by consent that Westminster was in breach of the Act by:
entering into franchise agreements with two franchisees which contained the condition that franchisees would not advertise or sell goods supplied by Westminster at less than price specified by Westminster
issuing the two franchisees with stock supply procedures together with invoices that specified the retail prices of the goods
entering into a settlement agreement with one of the franchisees in relation to a royalty dispute which contained a term that the franchisee would not advertise and/or sell goods at a price less than the price less than the price specified by Westminster
sending a memorandum to one of the franchisees specifying the level of discounting of goods.
The parties are also seeking court declarations that Kenneth and Heather were knowingly concerned in the contraventions of the Act.
By consent, the parties are seeking:
injunctions that prevent Westminster, Kenneth and Heather Wade from inducing, or attempting to induce, any person not to advertise or sell decorative goods supplied by Westminster or any other supplier below a specified price; and
orders that the parties undertake to establish and/or attend trade practices compliance training.
11 April 2005: A penalty hearing was held before Justice Mansfield. Justice Mansfield:
declared that Westminster's conduct breached the resale price maintenance provisions of the Trade Practices Act
granted injunctions that prevent Westminster and Mr and Mrs Wade from inducing, or attempting to induce, any person not to advertise or sell decorative goods supplied by Westminster below a specified price
ordered that Westminster establish a trade practices compliance program for employees and other persons involved in Westminster's business and that Mr and Mrs Wade each attend a trade practices compliance seminar. There was no agreement between the parties on penalties.
21 September 2005: Penalties totalling $136 000 were imposed by the Federal Court, Adelaide, on Westminster Retail Pty Ltd and its directors, Mr Kenneth Wade and Mrs Heather Wade, for engaging in resale price maintenance. Following submissions, Justice Mansfield ordered Westminster Retail to pay $100 000, Mr Kenneth Wade to pay $18 000 and Mrs Heather Wade to pay $18 000.
