ACCC alleges resale price maintenance by Oobi Baby Pty Ltd

The Australian Competition and Consumer Commission has commenced proceedings in the Federal Court in Melbourne against Oobi Baby Pty Ltd.

The ACCC alleges the company engaged in resale price maintenance in relation to the range of infant toy and clothing products that it imports and distributes to retailers throughout Australia. 

The ACCC alleges that Oobi contravened section 48 of the Trade Practices Act 1974 by:

• making it known to internet-based retailers to whom it supplies its products that Oobi would not supply them with its products unless they agreed not to sell those products at prices less than prices specified by Oobi
• attempting to induce its internet-based retailers to raise their prices to prices specified by Oobi
• refusing to supply its products to certain internet retailers for the reason that they had sold its products at prices less than prices specified by Oobi
• making statements in relation to prices to its internet retailers that were likely to be understood by those retailers as a statement of prices below which its products were not to be sold, and
• offering to enter into an agreement for the supply of its products to its internet retailers, or potential internet retailers of its products, which contained a term that the retailer or potential retailer would not sell Oobi products at a price less than the price as specified by Oobi.

The ACCC has also instituted proceedings against Ms Alexandra Riggs, Oobi's sole director and owner.  The ACCC alleges that Ms Riggs was knowingly concerned in the alleged contraventions by Oobi. 

The ACCC is instituting in the Federal Court's Fast Track List, which has significantly reduced the time and cost of litigation for all parties when the ACCC has previously taken matters there. 

The ACCC is seeking:

• declarations Oobi contravened section 48 of the Act and that Ms Riggs was knowingly concerned in the alleged contraventions by the company
• injunctions restraining Oobi and Ms Riggs from engaging in similar conduct in the future
• pecuniary penalties against Oobi and Ms Riggs
• orders that Oobi publish a corrective notice on its website www.oobi.com.au and write to all its retail customers informing them of its resale price maintenance conduct
• orders with respect to a corporate compliance program, and
• costs.

The matter has been listed for a scheduling conference in the Federal Court, Melbourne, on 1 September 2008 before Justice Finkelstein.