Hard Rock Enterprises Pty Ltd

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from Hard Rock Enterprises Pty Ltd, operating as Ramo, (Hard Rock) after Hard Rock admitted it engaged in resale price maintenance and made false or misleading representations about consumer guarantees in contravention of sections 48 of the Competition and Consumer Act (CCA) and sections 18 and 29(1)(m) of the Australian Consumer Law (ACL) contained in schedule 2 of the CCA.

Hard Rock is an Australian business that sells blank apparel to retailers on a wholesale basis (Resellers) and directly to consumers via its online store.

Between 20 June 2024 and 11 September 2024, Hard Rock sent written communications to ten Resellers which stated that the Resellers were “required” to sell Hard Rock products at no more than 10% below Hard Rock’s recommended retail price (RRP). In the communications, Hard Rock informed resellers that if it found its requirements were not being met, it may adjust pricing or cease supplying its products to them. (RPM Conduct)

Hard Rock also made statements on its website that contained false or misleading representations about the effect of the consumer guarantee provisions of the ACL.

To address the ACCC’s concerns, Hard Rock provided the ACCC with an undertaking pursuant to section 87B of the CCA, that it:

• has ceased the RPM Conduct;
• will write to the ten Resellers informing them of their freedom to set prices;
• updated or is currently updating its website to remove the false or misleading representations about the effect of the consumer guarantees; and
• will establish a competition and consumer compliance program.

The undertaking will be in effect for 3 years from the commencement date.