Hornet Industries Pty Ltd

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from Hornet Industries Pty Ltd (Hornet Industries) in relation to resale price maintenance conduct within the meaning of sections 96(3)(b), 96(3)(c), and 96(3)(f) of the Competition and Consumer Act 2010 (CCA), that was likely to contravene section 48 of the CCA.

Hornet Industries is an importer and distributor of ‘recreational bikes’, including pit motorbikes, dirt motorbikes, quad motorbikes, and balance bicycles. It also supplies spare parts for recreational bikes. Hornet Industries sells recreational bikes directly to consumers via its website and retail outlets, and to independent resellers (Dealers) throughout Australia via its Dealer network.

From at least March 2021 to December 2022, Hornet Industries offered to enter into agreements with Dealers that contained requirements that prevented them from selling recreational bikes below the minimum advertised prices specified on price lists. Hornet Industries emailed its Dealers directing them not to sell under the ‘minimum advertised price’, being a price less than the ‘manufacturer’s suggested retail price’ specified on price lists.

Hornet Industries admitted that its conduct was likely to contravene section 48 of the CCA.

To address the ACCC’s concerns, Hornet Industries provided the ACCC with a section 87B undertaking that includes:

• admissions and acknowledgements of the ACCC’s concerns;
• commitments to ensure that the conduct is not repeated;
• corrective notices to Dealers affected by the conduct; and
• establishing and implementing a competition and consumer compliance program that will operate for a minimum of three years.