Four panel beating and spray painting businesses have been found by the Federal Court to have colluded on the prices they would charge motor vehicle insurance companies for repair work.
The Australian Competition and Consumer Commission had alleged that in mid-2000 the four Pilbara-based panel beaters discussed the prices they would charge the insurance companies.
The discussions culminated in an agreement on the prices they would charge for repair work carried out for insurance companies from 1 September 2000. On 25 August 2000 the four sent a letter to 18 insurance companies in which they specified the agreed charges for repair work.
The businesses co-operated with the ACCC and moved quickly to resolve the matter. The court also granted injunctions preventing the four from engaging in similar conduct, ordered them to attend a trade practices compliance program and pay costs.
The action was settled by consent of the parties. The businesses were based in the Port Hedland /South Hedland region of Western Australia.
Price-fixing is illegal under the Trade Practices Act 1974. It occurs where there is an agreement, arrangement or understanding between competitors which has the purpose or effect of fixing, controlling or maintaining prices of goods or services. It applies whether the competitors are fixing the prices at which they sell or buy.
"Regardless of commercial pressures placed upon suppliers by customers, companies must not engage in anti-competitive conduct such as price fixing to the detriment of consumers", ACCC Chairman, Professor Allan Fels, said today. "If consumers, and businesses, are to obtain the full benefits of competition, businesses must make their decisions about pricing and output individually and not collectively.
"The Act offers both large and small businesses protection from anti-competitive behaviour by other businesses such as suppliers and competitors but it also imposes obligations on those businesses to comply with the Act.
"Businesses, whether carrying on trade in cities or in rural and regional Australia should be aware of their rights and obligations under the Act and those who choose to ignore their obligations, for whatever reason, do so at their peril".