ACCC alleges resale price maintenance by Topfield distributor

The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court, Melbourne, against Digital Products Group Pty Limited alleging the company engaged in resale price maintenance* in relation to certain Topfield branded digital set-top boxes.

The ACCC has alleged that Digital Products Group contravened section 48 of the Trade Practices Act 1974 by attempting to induce and inducing a certain retailer not to advertise certain Topfield digital set-top boxes below their respective recommended retail prices. The allegations cover the period from October 2003 to June 2005.

The ACCC has also instituted proceedings against Mr Jai Kemp, the sole director of Digital Products Group, and Mr Mark Dopson, the National Sales Manager of the company. The ACCC alleges that Mr Kemp and Mr Dopson were knowingly concerned in and party to certain alleged contraventions by Digital Products Group.

The ACCC is seeking:

• declarations that Digital Products Group contravened section 48 of the Act and that Mr Kemp and Mr Dopson were knowingly concerned in and party to certain alleged contraventions by the company
• injunctions restraining Digital Products Group, Mr Kemp and Mr Dopson from engaging in similar conduct in the future
• pecuniary penalties against Digital Products Group, Mr Kemp and Mr Dopson
• an order that Digital Products Group implement a trade practices compliance program, and
• costs.

The matter has been listed for a directions hearing in the Federal Court, Melbourne, on 27 October 2006 before Justice Tracey.

*Section 48 of the Trade Practices Act 1974 prohibits 'resale price maintenance'. A company engages in resale price maintenance where, among other things, it induces or attempts to induce a person not to advertise or sell a product which that company has supplied to that person for less than a specified price.