Oticon Australia Pty Ltd - s.87B undertaking

On 18 December 2012 the ACCC accepted a section 87B undertaking from Oticon Australia Pty Ltd ("Oticon") who are engaged in the wholesale and retail sales of hearing instruments (hearing aids) in Australia. In its wholesale division, Oticon sells hearing aids to independent distributors who resell those aids onto end consumers.

In September 2011 0ticon agreed to supply hearing aids to an independent distributor on condition that the distributor sells Oticon hearing aids at prices closer to Oticon's recommended retail prices.

Also in September 2011, 0ticon Australia offered to supply hearing aids to another independent distributor on the condition that it would sell at a price within 15% of Oticon's recommended retail prices.

In response to an ACCC investigation, Oticon accepts that by engaging in the conduct described above, Oticon engaged in Resale Price Maintenance in contravention of section 48 of the Competition and Consumer Act 2010.

To address the ACCC's concerns, Oticon provided the ACCC with court enforceable undertakings that will:

·         refrain from engaging in resale price maintenance in the future;

·         maintain and continue to implement a compliance program

In assisting the ACCC's investigation and resolution of the matter, Oticon has, amongst other things

·         already written to all of its customers informing them that any recommended retail price lists communicated by Oticon to customers were recommendations only

A copy of these documents can be viewed on the ACCC's website.