Settlement of ACCC action against timber merchants

Three Adelaide timber merchants have given undertakings to the Federal Court as part of a settlement of the Australian Competition and Consumer Commission's legal action against them.

On 4 August 2005 the ACCC instituted proceedings against Auspine Limited, Geo J Bone & Sons Pty Ltd and JAG Timber Products Pty Ltd for alleged price fixing or attempted price fixing of timber estimating services in South Australia in contravention of the Trade Practices Act 1974.

The ACCC also alleged that Mr Frank McDonald, formerly of Auspine, Mr Andrew Bone of Bone Timber, and Mr Gary Daniel of JAG Timber were knowingly concerned in or party to the conduct.

The settlement of the legal action was entered into by all of the respondents on the basis that they do not admit that they engaged in conduct in contravention of the Act.

The undertakings provided to the court include undertakings that, for a period of five years, they will not: make or attempt to make any contract, arrangement or arrive at an understanding with competitors regarding the price each charges for estimation services or give effect to any such contract, arrangement or understanding.

Messrs McDonald, Bone and Daniel have also given undertakings that they will refrain from inducing, being knowingly concerned in, party to, or the giving effect to, any such contract, arrangement or understanding between a corporation and one or more of its competitors.

Bone Timber and JAG Timber have undertaken to implement a trade practices law compliance program, and Auspine has undertaken to give due and reasonable consideration to adoption and implementation of the recommendations of a report into its existing trade practices law compliance program. Messrs McDonald, Bone and Daniel have also undertaken to attend a trade practices law compliance seminar.