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Hobie Cat Australia v's ACCC #140057
04/15/08 05:41 PM
04/15/08 05:41 PM
Joined: Mar 2005
Posts: 322
South Australia
Marcus F16 Offline OP
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Marcus F16  Offline OP
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Joined: Mar 2005
Posts: 322
South Australia
Hmmmm......

I pay my share of $$$ to the ACCC & dont necessarily support Hobie, but I sometimes wonder about their agenda. <img src="http://www.catsailor.com/forums/images/graemlins/frown.gif" alt="" />

Copied from Sailing Anarchy

Hobie Cat Australasia Pty Ltd penalised $168,000 for resale price maintenance

The Federal Court of Australia has imposed a penalty of $168,000 on Hobie Cat Australasia Pty Ltd, a kayak and sailboat supplier, for engaging in resale price maintenance in contravention of section 48* of the Trade Practices Act 1974.

The Australian Competition and Consumer Commission instituted proceedings against Hobie in September 2007, alleging Hobie had engaged in resale price maintenance by including in its dealership agreements, terms which prohibited dealers from selling or advertising Hobie products below the recommended retail prices, or at prices no less than 10 per cent below the recommended retail prices.

After admissions by Hobie that it engaged in the conduct alleged, the ACCC and Hobie submitted agreed orders, including a proposed penalty figure, for consideration by the court.

Justice Finn imposed the penalty submitted and made consent orders, including:

declarations that Hobie engaged in resale price maintenance conduct in contravention of section 48 of the Trade Practices Act
injunctions restraining the same contravening conduct in future
Hobie establish a trade practices compliance program, and maintain that program for a period of three years
Hobie write to all of its dealers advising them that it had engaged in illegal conduct and that it cannot specify to retailers a minimum price below which goods are not to be sold, and
Hobie pay the ACCC's costs.
Justice Finn noted that while Hobie's conduct was "intentional and purposive" it "involved no knowing (or deliberate) contravention of the Act."

He also noted that the penalty was substantial and significant for a company of Hobie's size and was proportionate to the seriousness of its contraventions.

ACCC Chairman, Mr Graeme Samuel, said: "The outcome of this matter should drive home to businesses of all sizes that every care must be taken to ensure they are aware of their obligations under the Trade Practices Act. It also serves as a warning that the ACCC will vigorously pursue allegations of resale price maintenance in any industry to ensure there is fair play in the market place and lower prices for consumers."


Marcus Towell

Formula Catamarans Aust Pty Ltd
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Re: Hobie Cat Australia v's ACCC [Re: Marcus F16] #140058
04/15/08 07:41 PM
04/15/08 07:41 PM
Joined: Jul 2001
Posts: 953
Western Australia
Stewart Offline
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Stewart  Offline
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Joined: Jul 2001
Posts: 953
Western Australia
Ok Im confused about the relevance and disquiet.

Just means Hobie dealers can now compete against each other. This bad why??? Not that I really care how much a H16 sells for.

Or are you suggesting that Hobie has finally worked out how to make an affordable F16 built to weight? <img src="http://www.catsailor.com/forums/images/graemlins/confused.gif" alt="" />

Last edited by Stewart; 04/15/08 07:46 PM.
Re: Hobie Cat Australia v's ACCC [Re: Stewart] #140059
04/15/08 09:04 PM
04/15/08 09:04 PM
Joined: Oct 2005
Posts: 951
Brisbane, Queensland, Australi...
ncik Offline
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ncik  Offline
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Doesn't the ACCC just respond to alleged breaches from interested parties? Someone who doesn't like Hobies practises must've dropped them in it.

I don't think it is a bad thing, just interesting. Maybe Hobie resellers can now put pressure on the manufacturer to drop the price.

It would truly be interesting if they'd been stung for being monopolistic! Doesn't it go hand-in-hand with single manufacturer one design(SMOD) class builders? Maybe that is to come from the ACCC. Does any other sport in the world require the use of equipment from only one manufacturer? I can't think of any right now?

Re: Hobie Cat Australia v's ACCC [Re: ncik] #140060
04/15/08 09:46 PM
04/15/08 09:46 PM
Joined: Mar 2005
Posts: 322
South Australia
Marcus F16 Offline OP
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Marcus F16  Offline OP
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Joined: Mar 2005
Posts: 322
South Australia
Stewart - I guess that now means the spare parts might be a little more realistic.? Then again I guess HCA could bump their wholesale price up & therefore all the dealers will have an absolute minimum $$$ value to on sell to the customer.
Nick - I think they call it collusion when the "rivals" get together.!
Hopefully HCA's $$$ can go to investigating the fuel companies & price fixing.!!!?? <img src="http://www.catsailor.com/forums/images/graemlins/blush.gif" alt="" />


Marcus Towell

Formula Catamarans Aust Pty Ltd
Re: Hobie Cat Australia v's ACCC [Re: Marcus F16] #140061
04/16/08 12:45 AM
04/16/08 12:45 AM
Joined: Jul 2002
Posts: 539
taipanfc Offline
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taipanfc  Offline
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Posts: 539
But was this "price maintenance" policy primarily on the cat or kayak side, or across the business?

Both different lines and I would have thought different retailing networks and could have had different agreements with each, but it could have been a company wide policy.

Re: Hobie Cat Australia v's ACCC [Re: Marcus F16] #140062
04/16/08 10:58 AM
04/16/08 10:58 AM
Joined: Jul 2001
Posts: 953
Western Australia
Stewart Offline
old hand
Stewart  Offline
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Joined: Jul 2001
Posts: 953
Western Australia
What I suspect Hobie was doing was to maintain the "name brand" by maintaining the retail price and maintain dealers profit lines. *shrugs*not sure which divisions were involved.

Some executives should actually read and understand the laws they operate under..

Re: Hobie Cat Australia v's ACCC [Re: Stewart] #140063
04/16/08 09:41 PM
04/16/08 09:41 PM
Joined: Dec 2005
Posts: 201
Adelaide South Australia
R
ratherbsailing Offline
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ratherbsailing  Offline
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R

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Posts: 201
Adelaide South Australia
this was caused by a shop that is no longer a dealer and conflicted personality's.



Re: Hobie Cat Australia v's ACCC [Re: ratherbsailing] #140064
04/16/08 11:43 PM
04/16/08 11:43 PM
Joined: Mar 2005
Posts: 322
South Australia
Marcus F16 Offline OP
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Marcus F16  Offline OP
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Joined: Mar 2005
Posts: 322
South Australia
I meant to state I did not support the ACCC's agenda.!! <img src="http://www.catsailor.com/forums/images/graemlins/blush.gif" alt="" />

Last edited by MTowell; 04/16/08 11:44 PM.

Marcus Towell

Formula Catamarans Aust Pty Ltd

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