ACCC accepts court-enforceable undertakings from hotelier in Ayr

The Australian Competition and Consumer Commission has accepted court-enforceable undertakings from a hotelier in Ayr who attempted to fix prices with other hoteliers in the town.

Jordan Tatum Enterprises Pty Ltd (JTE) is the proprietor of the Burdekin Hotel in Ayr, North Queensland. Ayr is situated approximately an hour south of Townsville.

Mr Nathan Hunt, director of JTE and manager of the Burdekin Hotel, arranged a meeting with five other hoteliers in Ayr to attempt to reach agreement on the price of various over-the-bar alcoholic beverages.

Although no agreement was reached between the hoteliers, the attempt to fix prices between competitors may contravene the Trade Practices Act 1974.

The company, and Mr Hunt, have admitted the conduct may have constituted an attempted contravention of section 45 of the Act, which prohibits price fixing.

JTE and Mr Hunt have given court-enforceable undertakings that:

• they will not engage in any activity constituting price fixing or attempting to fix prices
• Mr Hunt will undertake annual trade practices compliance training for three years
• Mr Hunt will use his best endeavours to have published, in an Australian hotel industry newsletter, an article concerning price fixing, and
• they will implement and maintain a trade practices compliance program in relation to any business currently operating, or acquired within the next three years, by JTE or any other corporation controlled by Mr Hunt.

ACCC Chairman, Mr Graeme Samuel, said even an attempt to fix prices can be a contravention of the Trade Practices Act.

"In this instance the individual asserted they were not aware their conduct contravened the Act until they were contacted by the ACCC. However, this case demonstrates that ignorance of the law is not a sufficient excuse.

"Businesses, regardless of their size or location, need to be aware of their trade practices obligations under the Act, or face investigation by the ACCC," Mr Samuel said.

The undertaking will be available on the ACCC's website.