Truck companies fined by ACCC for price fixing

Two truck retailers and three individuals behind a price fixing and market sharing scheme have been ordered by the Brisbane Federal Court to pay more than $1 million in penalties after action was taken by the Australian Competition and Consumer Commission.

Each of the parties have made full admissions, and the ACCC found the individuals did not understand the applicable laws or their consequences.

Justice Dowsett found that between February 2005 and September 2006, Vanderfield’s sales managers Bavin Cherry and John McGuinn, along with Sci-fleet sales manager Ross Goodwin, created anti-competitive agreements relating to the sale of trucks in Queensland.

Both companies sell Hino trucks in several locations including Brisbane and the Gold Coast, and will now pay penalties of $500,000 each, with Cherry, McGuinn and Goodwin to pay $30,000 each. Each company was also ordered to pay $50,000 in costs.

The ACCC also warned as of 24 July, individuals risk jail sentences of up to 10 years and fines of up to $220,000 for serious cartel conduct. Companies could also face fines of up to $10 million, or three times the total value of benefits obtained.

ACCC chairman Graeme Samuel said in a statement the case shows that people acting irresponsibly without knowledge of the Trade Practices Act are engaging in a dangerous and risky practice.

“I am pleased to note that all parties cooperated with the ACCC in resolving this case, and we therefore were able to recommend significant penalty discounts. In particular, Sci-Fleet and Mr Goodwin were quick to volunteer information that significantly assisted our investigation,” he said.

“The ACCC will seek much heavier punishment for those who are found guilty but who do not put their hands up, particularly for more serious cartel conduct, which is now a criminal offence.”