The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Sydney, against George Weston Foods Limited and Mr Paul Benedict Loneragan, a former Director of George Weston, alleging an attempt by George Weston and Mr Loneragan to induce a competitor to agree to increase the wholesale price of wheaten flour* in contravention of the Trade Practices Act 1974.
The ACCC alleges that in November 1999 Mr Loneragan called senior representatives of a competitor stating that George Weston's prices were rising and that they should cooperate and do the same. At the time Mr Loneragan was a Divisional Chief Executive of George Weston, responsible for its milling activities nationally.
The ACCC further alleges that Mr Loneragan made a second call to the same competitor stating that George Weston was putting flour prices up and was looking for cooperation from that competitor.
The ACCC is seeking:
- declarations that George Weston and Mr Loneragan breached the Trade Practices Act;
- penalties;injunctions restraining George Weston and Mr Loneragan from engaging in similar conduct to that alleged in the future;
- a comprehensive review of George Weston's trade practices compliance program;
- findings of fact; and
- costs.
A directions hearing has been set for the Federal Court on 7 February 2003 at 9.30 a.m.
* Wheaten flour: almost all of the bread baked in Australia is made from wheaten flour.