The ACCC has begun legal proceedings in the Federal Court against OmniBlend Australia, an online blender retailer, alleging it attempted to engage in price fixing with a competitor.
The ACCC also alleges that OmniBlend induced a supplier to direct OmniBlend’s key competitor not to discount its prices for blenders.
OmniBlend sells various kitchen blenders through its online store to businesses and consumers in Australia, New Zealand and the United Kingdom. According to its website the business began operation in Australia in 2012 and is based in the Northern Rivers region of NSW.
OmniBlend Australia and its competitor were the two major distributors of OmniBlend branded blenders in Australia.
According to a statement released by the ACCC today it alleges, “OmniBlend attempted to enter into an agreement with its competitor to fix prices. The ACCC further alleges that when this attempt failed, OmniBlend induced the supplier to engage in resale price maintenance by refusing to supply the competitor unless it stopped discounting the price of certain blenders.”
“Price fixing and resale price maintenance affect consumers by increasing prices, reducing consumer choice and distorting the competitive process,” ACCC Chairman Rod Sims said.
Sims issued a broad warning to all retailers that the ACCC is prepared to crackdown on any business undertaking ‘anticompetitive conduct’.
“The ACCC views these types of anticompetitive conduct very seriously and will not hesitate to investigate and where appropriate take enforcement action against businesses who engage in this behaviour,” Sims said.
The ACCC is seeking remedies against OmniBlend Australia including pecuniary penalties, injunctions, declarations, compliance training and costs.