The Australian Competition and Consumer Commission today instituted proceedings in the Federal Court, Melbourne against Colgate-Palmolive Pty Ltd for alleged resale price maintenance*.
The ACCC alleges that Colgate engaged in resale price maintenance over a period of four years in respect of market leading brands, including Colgate toothpaste and Ajax cleansers.
The ACCC alleges that between 1994 and 1998, Colgate tried to stop Tasmanian retailer, Chickenfeed Bargain Stores, from advertising various Colgate lines at cheap prices. The ACCC alleges that Colgate received numerous complaints from Woolworths' supermarkets in Tasmania about Chickenfeed's advertising, and tried to stop the advertising in order to avoid a price war.
The ACCC is seeking a pecuniary penalty against Colgate, and injunctions restraining the company from engaging in similar conduct.
A directions hearing will be held at the Federal Court in Melbourne at 9.30 a.m., 13 December 2000.