ACCC alleges resale price maintenance by Netti Atom

The Australian Competition and Consumer Commission has instituted legal proceedings against Netti Atom Pty Ltd alleging the company engaged in resale price maintenance in relation to the range of Scott branded bicycles which Netti Atom imports and distributes to retailers throughout Australia.

The ACCC alleges that Netti Atom contravened section 48 of the Trade Practices Act 1974 by attempting to induce retailers to whom it supplies Scott bikes not to advertise the bikes on their websites below the recommended retail price specified by Netti Atom.

The ACCC has also instituted proceedings against Mr Paul Feltis, Netti Atom's national sales and purchasing manager and part-owner. The ACCC alleges that Mr Feltis was knowingly concerned in the alleged contraventions by Netti Atom.

This is the first matter instituted by the ACCC in the Federal Court's new "Fast Track List". The Fast Track List came into effect on 1 May 2007 and is currently only available in the Victorian Registry. It is anticipated the Fast Track List will streamline court procedures, thereby reducing the time and cost of litigation.

The ACCC is seeking:

• declarations that Netti Atom contravened section 48 of the Act and that Mr Feltis was knowingly concerned in the alleged contraventions by the company
• injunctions restraining Netti Atom and Mr Feltis from engaging in similar conduct in the future
• pecuniary penalties against Netti Atom and Mr Feltis
• an order that Netti Atom implements a trade practices law compliance program
• an order that Netti Atom write to retailers to whom it supplies Scott bikes to inform them of Netti Atom's resale price maintenance conduct
• an order that Netti Atom publish an advertisement alerting the cycling industry to the prohibition on resale price maintenance, and
• costs.      

The matter has been listed for a scheduling conference in the Federal Court, Melbourne, on 14 September 2007 before Justice Finkelstein.