The Australian Competition and Consumer Commission has instituted proceedings against four Jurlique companies* and founder Dr Jurgen Klein, alleging resale price maintenance in the sale of Jurlique skincare, cosmetic and herbal products.
The ACCC has alleged in the Federal Court, Brisbane that the Jurlique companies and Dr Klein breached section 48 of the Trade Practices Act 1974 by:
- inducing or attempting to induce retailers and franchisees not to sell Jurlique products at a price less than the price specified by the Jurlique companies
- entering, and offering to enter into agreements for the supply of Jurlique products, one of the terms of which included that the products were not to be sold at a price less than a price specified by the Jurlique companies
- withholding supply of Jurlique products for the reason that the retailer had sold the products at prices below the retail prices specified by the Jurlique companies, and
- making it known to retailers and franchisees that Jurlique products would not be supplied unless they agreed not to sell the products at a price less than the price specified by the Jurlique companies.
The ACCC alleges that Dr Klein, Jurlique's founder and managing director at the time of the conduct, directed and authorised the contravening conduct of the Jurlique companies. The allegations cover the period from 1991 to 2003.
The ACCC is seeking court orders including:
- declarations that the Jurlique companies and Dr Klein breached sections 48 and 45 of the Act
- injunctions restraining the Jurlique companies and Dr Klein from engaging in the above mentioned conduct
- pecuniary penalties against the Jurlique companies and Dr Klein, and
- costs.
This matter is listed for hearing before Justice Spender on 10 October 2006 in the Federal Court, Brisbane.
*The Jurlique companies named as respondents in the proceedings are:
- Jurlique International Pty Ltd
- Jurlique Distribution Pty Ltd
- J&J Franchising Pty Ltd, and
- Jurlique Spa Pty Ltd.