Online kitchen appliance retailer, Omniblend Australia, has been ordered by the Federal Court of Australia to pay a penalty of $17,500 for engaging Taiwan Star International (TSI) to conduct resale price maintenance.

As part of the agreement, TSI sought to induce a retail competitor not to sell Omniblend blenders at a price less than the one specified by TSI, and subsequently withheld supply of the blenders to that competitor.

“The prohibition of resale price maintenance is an important one, as this conduct can affect consumers by increasing prices, reducing consumer choice and distorting the competitive process,” Sarah Court, ACCC Commissioner, said.

“The ACCC took this action because it was concerned that this conduct may have caused harm to Omniblend’s competitor, consumers and the market generally.

“The freedom to set prices, including offering discounts, allows businesses to compete for customers and is at the heart of a functioning market economy,”  Court said.

The court also accepted undertakings from Omniblend and its sole director, Neal Bowhay, regarding future conduct, and made declarations and orders by consent for compliance training by Omniblend and Bowhay, as well as the payment of a contribution to the ACCC’s costs.