The Federal Court of Australia has imposed penalties of more than $200,000 on Australia's largest manufacturer of aluminium boats for engaging in resale price maintenance.

Resale price maintenance, which is prohibited under section 48 of the Trade Practices Act 1974, occurs when suppliers prevent independent retailers or distributors from advertising or selling products below a specified price.

Justice Spender declared that Telwater engaged in resale price maintenance by making it known to its dealers that they could not advertise Quintrex or Stacer boating packages below a specified price, referred to as the 'brochure price'. Mr Paul Phelan, one of Telwater's directors, was knowingly concerned in the conduct.

Justice Spender made orders by consent, which included a penalty of $210,000 for Telwater and $28,000 for Mr Phelan, in addition to declarations, injunctions and costs.

"Resale price maintenance can take many forms," ACCC Chairman, Mr Graeme Samuel, said today. "Requiring independent dealers not to advertise below a specified price is one such form.

"This case is a timely reminder that businesses must allow independent distributors of their products the freedom to determine the prices at which they both advertise and sell.  Ultimately, it is the consumer who benefits from such freedom in the market."

The ACCC acknowledges the cooperation of Telwater in the resolution of this matter. Telwater voluntarily stopped the conduct and initiated a trade practices law compliance program when the ACCC initially raised concerns about their conduct. 

The imposed penalty took into account the cooperation offered by Telwater and Mr Phelan to the ACCC.

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