BP Australia Pty Ltd - Authorisations - A91485 - A91487

Summary

BP and its resellers propose to collectively participate in the Velocity Frequent Flyer Program (Velocity Program).
In that context, authorisation is sought:

under Form A (A91485) for:
-any boycott conduct that technically arises from restrictions or limitations on resellers' participation in competing loyalty programs, or the supply of transactional data to third parties. This conduct partly serves to:

-ensure that resellers are committed to the promotion of the Velocity Program; and

-avoid consumer confusion that may arise from BP-branded sites offering benefits in relation to various
loyalty programs.

BP submits that it and its resellers have not and will not engage in any boycott for the purposes of negotiating with Velocity or any other party.

under Form B (A91486) for:
-contracts, arrangements or understandings between BP and resellers as to the terms on which they collectively
participate in the Velocity Program, including but not limited to:

-charges paid to Velocity (authorisation in respect of these charges is sought out of an abundance of caution;
and

-charges paid by Velocity (either directly to BP or indirectly to resellers via BP).


-contracts, arrangements or understandings between BP and resellers as to the benefits to be provided to Velocity
Program members (whether by BP, a reseller or any third party).

under Form E (A91487) for:

-any third-line forcing conduct that arises when BP or resellers supply, or offer to supply, benefits to a Velocity
Program member upon a condition that the Velocity Program member has acquired:

-loyalty program services from Velocity; or

-goods or services from a third party (which may arise where BP or a reseller redeems, or offers to redeem, Velocity Program points earned via purchases from another Velocity Program partner, or when they honour,
or offer to honour, gift cards obtained by Velocity Program members through the Velocity Online Rewards
Store).

-any third-line forcing conduct that would arise if BP were to make the supply of goods or services to resellers
conditional upon their participation in loyalty program activities, including under the Velocity Program.

On 24 April 2015, the ACCC granted interim authorisation to enable the Applicants to:
a. launch their collective participation in the Velocity Program (including by offering opportunities for Velocity members to earn point through purchases at participating sites), and
b. immediately progress discussions between Velocity, BP and Participating Resellers about possible benefits to be offered to Velocity Program members upon the redemption of points.

On 17 July 2015, the ACCC issued a draft determination proposing to grant authorisation in respect of the proposed conduct for five years. A copy of the draft determination is available by following the links below.

On 18 August 2015 the ACCC issued a final determination granting authorisation for a period of five years. A copy of the ACCC's determination is available by following the links below.

Applicant(s)

  • BP Australia Pty Ltd

Authorisation number(s)

  • A91485
  • A91486
  • A91487